Can I Recover Compensation for the Diminished Value of My Vehicle?

vehicle values

If your vehicle was damaged in a collision and sent off for repairs, the resale value is likely to be less than what it was before the crash. This is true even if the repair shop was able to fully restore the vehicle.

Fortunately, you can seek compensation for the reduced resale value of your repaired vehicle as part of your overall car crash claim. This means, along with related medical bills, lost wages and other property damages, you may be able to recover compensation for the diminished value of your vehicle.

Call our experienced car crash lawyers in Sacramento today to discuss your injuries and how to recover compensation for all your losses after a crash. If we determine you have a case and you choose to hire our services, there are no upfront fees to pay.

Request a FREE case review today. Call: (916) 777-7777

What Is the Diminished Value of a Vehicle?

The diminished value of a vehicle is the difference between what your vehicle would have sold for as a used car with a clean accident history and what its resale value becomes once it has a collision on its record.

An accident diminishes the resale value of your vehicle. This is because there is more demand for vehicles that have no prior crash damage and clean accident records.

Even if your vehicle was fully repaired and looks as if it was never involved in a crash, the perception of = your car’s value is permanently damaged. Private buyers often review the Carfax reports of a vehicle they are considering. Most private buyers try to avoid buying vehicles that were previously involved in a crash. If they do buy, they will use the crash to their advantage and negotiate a lower price. If you can get a dealership to agree to buy the vehicle, you can expect their offer to be low as well.

What Does California Law Say About Diminished Value Claims?

California law allows accident victims to include this diminished value in their injury claims. Victims have a three-year time limit from the date of the crash to file a claim.

The claim, properly known as “diminution of value” only applies to drivers who are not at fault for the crash. If you were at fault for the accident, you would not qualify to seek compensation for the diminished value of your vehicle.

What Are the Types of Diminished Value?

There are three types of diminished value:

Inherent Diminished Value

This refers to when a vehicle loses its value simply because it was involved in an accident. Even if the vehicle is fully repaired, the blemish on its accident history report brings down the value.

These types of diminished value claims are the most common and most often accepted when pursuing compensation.

Repair-Related Diminished Value

If a vehicle is damaged in a crash and the completed repairs are faulty or incomplete, you may be able to include those damages in your car crash claim. In this example, both the accident and the poor repair job have diminished the value of the claim.

Immediate Diminished Value

Vehicles lose value immediately after an accident even before the owner has a chance to get any repairs done. The immediate diminished value of a vehicle is the difference between the resale value of the car before being damaged in the crash and the resale value before any repairs were made.

How Do I Prove Diminished Value?

Your lawyer may need help from an auto appraiser who can help determine what the value of the vehicle was before the crash. In other words, what the value of your car was with a clean record, and what the value of your car is post-crash repairs.

If you have a repair-related diminished value claim, a mechanic might be able to help determine exactly what the issues with repair are and how much it could diminish the value of the vehicle.

Need Legal Help After a Crash? Call Arnold Law Firm Today

If you were involved in an accident and sustained injuries that were caused by another driver’s negligence, you may be eligible to file a claim for damages. If you qualify, you may be able to recover compensation for medical costs, lost wages, pain and suffering and damage to your property. You may also be able to include the diminished value of your vehicle in this claim.

Having a knowledgeable attorney on your side may greatly benefit you and your claim. We are prepared to deal with the insurance company on your behalf so you can focus on your health and recovering from your injuries. Our attorneys are prepared to assist you through every step of the legal process, all at no upfront cost to you.

We offer a free initial consultation to discuss your legal options. If we represent you, we do not get paid unless we recover compensation on your behalf.

Call 916-777-7777 to learn more.