What Is a Diminished Value Claim?

What Is a Diminished Value Claim?

Many drivers are unaware that they may be eligible to file a diminished value claim in the event of a car accident. Others are unaware that these claims are part of the car insurance policy. The car accident lawyers at Lerner and Rowe Injury Attorneys have assembled a guide to help you and the drivers in your household understand what a diminished value claim is and how you can utilize it to maximize your settlement.

Make sure you’re not leaving any money on the table and contact a car accident attorney today at 844-977-1900. Our award-winning personal injury lawyers will take care of all your legal needs and do everything possible to obtain the highest settlement possible. Additionally, our team is committed to helping you carry the emotional burden of a car accident so that you can focus on your health and recovery.

Get Compensated for Your Car’s Lower Value

Most drivers are aware that their car’s value starts depreciating when it becomes theirs. The old saying is that their car’s value has decreased the second that they drive away from the dealership. While that’s not precisely true, depreciation absolutely starts when the title and registration are in your name. Generally speaking, a new car loses 15% to 20% of its value after one year.

What some people don’t know is that getting into a car accident accelerates depreciation. Depending on the condition of the car before the accident and the amount of damage incurred, the car’s value can plummet. A diminished value claim is meant to compensate you for the difference between the value of your car before the accident and the value of your car after it.

Calculating a Diminished Value Claim

The good news is that calculating a diminished value claim is relatively simple. Auto insurance companies use an equation called formula 17c, which takes 10% of the book value of your car and applies modifiers based on the damage incurred and mileage at the time of the car accident.

As an example, let’s say your car’s book value is $25,000. Formula 17c takes 10% of the value and starts at $2,500. Next, it applies a mileage modifier of 50%, lowering the number to $1,250. Finally, an additional damage modifier of 50% is applied, bringing the diminished value claim to $625. Keep in mind that if your car has a higher value and relatively low mileage then you can expect a higher amount.

As mentioned above, calculating a diminished value claim is the easy part. Getting the money that you deserve is more difficult. Car insurance companies will try to pay you as little as possible, underestimating your car’s value and applying higher modifiers to your claim. To make sure that you get the most money possible for your car’s lower value, you need an experienced car accident attorney, like the ones at Lerner and Rowe.

Maximize Your Diminished Value Claim with Lerner and Rowe

The personal injury attorneys at Lerner and Rowe are ready to help you get the money that you deserve for your car accident. This includes compensation for medical expenses, ongoing treatment, lost wages, pain and suffering, your car’s diminished value, and more. After you get into a car accident, you can be sure that the insurance company will try to minimize your settlement and/or delay paying you money that’s rightfully yours. Let our team of compassionate legal professionals fight back on your behalf. We know how to combat insurance companies and get the million-dollar results our clients love.

Contact us today for a free consultation. Our team is available to help you 24 hours a day, 7 days a week. You can reach us by phone at 844-977-1900 and only through LiveChat or secure contact form. To get the award-winning representation that you deserve, Lerner and Rowe is the way to go.

The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.