Buying an automobile is a very big financial investment, so most people want their vehicle to retain as much value as possible. Cas naturally depreciate over time, but sustaining damage in an accident can lower the value of a vehicle drastically. If your car is damaged in an accident, you may want to seriously consider filing a diminished auto value claim. A diminished auto value claim is submitted to an insurance company, and when approved, you will receive a check to make up for the lost value of your car. However, it is important to note that insurance companies are not eager to pay out on diminished auto value claims. Continue reading to learn more about the process of filing a diminished auto value claim.
A Diminished Auto Value Claim Is Rarely Approved for At-Fault Drivers
Before you take the time to submit the necessary paperwork for a diminished auto value claim, it is important to know that the claims from at-fault drivers are rarely approved. Thus, if you were cited with a ticket or the responding police officer at the scene deemed that you are responsible for the accident, your own insurance company most likely will not approve a diminished auto value claim. In many cases, diminished auto value claims are filed with another driver's insurance company. One exception is if an uninsured or underinsured driver caused the accident — in this situation, you can file a claim with your own insurance company, but your premiums may increase.
You Should File Your Claim as Soon as Possible
Ideally, you should file a diminished auto value claim as soon as you can. Since you will already be working with the at-fault driver's insurance company to get your car repairs paid for, it makes sense to file your claim at the same time. In addition, there is a statute of limitations regarding filing a diminished auto value claim, so doing it right away will ensure that you don't forget and miss a deadline.
Get an Appraisal from a Third Party
Insurance companies follow certain formulas when determining how much to reward when a diminished auto value claim is submitted, but it is still in your best interest to be informed and to know what is going on. Your best bet is to get your vehicle appraised by a trusted third party after it is repaired. Once you have an appraisal, you can compare the new value of your car to cars that have not been involved in an accident to ensure that the insurance company gives you a fair settlement.