Have you ever heard the term “diminished value?” Many Washington state residents have not. It is one of the best-kept secrets of the auto insurance industry, but what does it mean? The entire purpose of having auto insurance is to make car owners whole again following an accident. Making a diminished value claim is a little-known way to potentially increase the compensation you receive from your car insurance company.
Even when a car is well-repaired after an accident, it will likely still suffer from diminished value. It means that if someone tries to sell a vehicle that has been in a collision, most buyers will refuse to pay a lot for the car. For example, let’s say a used car that has never been in a collision is worth $20,000. The same car that has suffered an accident but has been expertly repaired and put back in great condition will still be worth much less at resale value. This is because buyers typically offer thousands of dollars less than the asking price.
In Washington and in most other states, you can file a diminished value claim with the at-fault party’s insurance company to cover the loss. This means if you try to sell your repaired car for $15,000 but you only get offers of $8,000, then the diminished value claim could cover your $7,000 loss. Unfortunately, most insurance providers routinely deny diminished value claims.
This is where good personal injury attorneys prove their worth. We have the resources and the right legal approach to help victims find success with insurance providers. It is just one more way a personal injury lawyer helps those who have suffered property or personal damage in an accident. Discover other ways a lawyer can help you recover insurance payments by exploring our website.