You’re heading home after a long day, watching the road, following every rule. Out of nowhere, another driver blows a red light and slams into your car. While your physical injuries may heal over time, your vehicle’s value might not. 

Even after repairs, your car could lose its worth simply because of the accident history. That’s where a diminished value claim can make a real difference.

At The Dash Cam Lawyer, we understand Florida accident claims, including the lesser-known issue of diminished value. With hundreds of years of combined legal experience, we help ensure that accident victims like you don’t miss out on the value of possibly their biggest asset.

What is Diminished Value?

After an accident, even the most thorough repairs can’t undo the fact that the vehicle’s been in a crash. Buyers can spot it on a history report, and they often won’t pay as much for it as they would for a similar car with a clean record. 

This reduction in value is called “diminished value” and if the accident wasn’t your fault, you might be able to recover that lost value.

Would you pay the same price for two identical used cars, knowing one had been in a major accident? Probably not. 

Diminished value claims aim to get that difference back for you. In Florida, this type of claim is allowed, so you have the right to pursue compensation for the reduced value of your car.

Types of Diminished Value Claims in Florida

Not all diminished value claims are the same. Generally, there are three main types to be aware of:

Inherent Diminished Value

This is the most common type. Inherent diminished value is the amount of lost value purely because the vehicle now has an accident history. Even if the repairs are flawless, the stigma of that accident can reduce its worth. 

For example, if a car has significant frame damage, a buyer may question the car’s long-term safety or stability, leading them to pay less.

Repair-Related Diminished Value

This type of diminished value results from repairs that aren’t perfect. Maybe the repair shop used aftermarket parts instead of the original ones, or there’s a noticeable mismatch in the paint color. These visible or structural imperfections can lower the car’s resale value.

Immediate Diminished Value

This applies when a car is deemed a total loss, and the insurance payout doesn’t match its true pre-accident market value. If you disagree with the payout amount, you may have grounds to argue that the vehicle’s actual market value was higher than what the insurer offered.

Who Qualifies for a Diminished Value Claim in Florida?

Not every accident leads to a successful diminished value claim. Here are some key points to consider:

• Not Your Fault: If the accident was caused by another driver, you’re generally eligible.
• Repairable Damage: Your car must have suffered damage that required professional repairs.
• Completed Repairs: Repairs should be fully completed before filing a claim.
• Loss of Value: The car’s market value must be measurably lower after the repairs.
• Vehicle Age and Value: Older cars or those valued under $7,000 may struggle to qualify for a diminished value claim in Florida.
• Time Limit: In Florida, you have four years from the date of the accident to file a diminished value claim, so it’s essential not to wait too long.

How to File a Diminished Value Claim in Florida

The process for filing a diminished value claim can seem daunting, but breaking it down step-by-step can help. Here’s what you’ll need to do:

1. Notify the At-Fault Driver’s Insurer: Inform the insurance company of your intent to seek compensation for diminished value.
2. Obtain an Appraisal: Getting a professional diminished value appraisal from a qualified appraiser is crucial. This report should detail how much value your vehicle has lost.
3. Gather Documentation: Pull together all the necessary evidence, such as repair estimates, invoices, photos of the damage, a vehicle history report, and the appraisal report.
4. Submit Your Claim: Present a well-documented claim package to the at-fault driver’s insurer, including your appraisal and supporting materials.

These steps might sound straightforward, but dealing with insurance companies can often add extra hurdles. Insurance adjusters may question the appraisal, try to minimize the lost value, or even deny the claim. Having a knowledgeable team like ours by your side can make a difference.

Common Challenges with Diminished Value Claims

Insurance companies aren’t usually eager to hand over money on diminished value claims. Here are some common challenges we see:

Insurance Tactics

Insurers might offer a lower amount than the appraised value, disputing the extent of diminished value. Having solid documentation, like a certified appraisal report, helps counter these tactics.

Proof of Diminished Value

Proving how much value your car lost isn’t always straightforward. Insurers may argue that the vehicle’s value didn’t decrease significantly, even if evidence says otherwise.

Complex Claims Process

It can feel overwhelming to navigate through the claims and appeals process, especially with insurance adjusters who are experts at protecting their companies’ bottom line.

When facing these obstacles, it helps to have an experienced legal team by your side. Our familiarity with Florida insurance law lets us anticipate and counter these challenges, helping you pursue a fair settlement.

Don’t Settle for Less – Contact The Dash Cam Lawyer Today!

If you’ve been in an accident and think your car’s value has taken a hit, we’re here to help. Don’t let the insurance company take advantage of you. Call The Dash Cam Lawyer at 561-561-DASH or fill out our online contact form for a free consultation. We’ll dedicated to protecting your rights every step of the way and helping you get the compensation you deserve, so you can focus on what matters—your recovery.