Imagine you just bought a new car. You saved for years to get this car. It’s shiny, smells excellent, and has the latest technology. Now, imagine you’re on the road minding your own business, and your new car gets hit by another driver. Your brand-new car is now damaged and needs repair. Unfortunately, even a repaired car will most likely be worth less than before the accident.
While the at-fault driver’s insurance should pay for all damages to your car, this doesn’t account for the car’s “diminished value.” Insurance companies do not want you to know this term because it means they may have to pay you thousands more for your car’s damage.
“Car appraiser Seth Stairs says even after repairing the damage, a car’s value may drop after a crash. Someone may be less willing to buy your car than one who has never been involved in an accident. He calls the difference “diminished value” and says you shouldn’t expect insurance companies to tell you about it. “This is the industry kept secret,” Stairs said.” – sacramento.cbslocal.com
If your car is newer and the accident resulted in structural damage, you are more likely to receive the additional diminished value compensation. This is because new cars lose more of their value after a crash.
“He (Seth Stairs) says insurance companies are keeping billions of dollars they should be paying out nationally. He says your policy with your insurance company will most likely not pay diminished value on your car. If the other driver is at fault, he says you should ask their insurance for the diminished value.” – sacramento.cbslocal.com
Unfortunately, not all insurance companies are going to compensate somewhat. They may offer a little more money, but not the total value of your car. If you get an appraisal and realize you’re not being compensated fairly, you should talk with an experienced lawyer specializing in diminished value cases.
“The Department of Insurance says California’s insurance code is silent on the issue of diminished value after a car crash, and the agency can’t go after an insurance company for refusing to pay it.” – sacramento.cbslocal.com
It would help if you represented you against the insurance companies. We will help you get the additional diminished value of your car. If your new vehicle has been damaged in an accident, contact our experienced car accident lawyers today.
