Three Important Tips When Filing A Diminished Auto Value Claim

7 January 2020
 Categories: , Blog

After getting involved in an accident, your vehicle won't be as valuable as it used to be. Even if repairs are made and your vehicle is as good as new, the value won't be the same. This is known as diminished value. If you're in this spot, then filing a claim may be necessary. These tips will help you through this process. 

Check Insurance Company's Policy

It should be noted that not every insurance company will compensate you for these diminished auto claims. Thus, it's important to review your particular insurance company's policies before doing anything. You should have no trouble bringing up your insurance company's protocol regarding diminished auto value claims.

Some insurance companies will cover them if you weren't responsible for the accident taking place and other companies won't compensate you at all. Knowing where your insurance company stands will help you proceed accordingly. 

Be Honest

When filing one of these claims, it's so important that you're honest with what happened. Lying to your insurance company about how the accident occurred is considered fraud and then you could face hefty legal consequences. So that this doesn't happen, be straightforward with your insurance company from the beginning. 

Let them know exactly what happened, whether you were hit while being stationary or the driver changed lanes into yours and caused the collision. Try being as concise as you can when explaining the accident, as it will improve your odds of receiving compensation for this claim.

Find Out Diminished Value Amount

So that you know how much compensation to seek from your insurance company, you need to calculate a reasonable diminished value amount. This doesn't have to be that difficult today, fortunately. First, use an online vehicle estimator to see what your vehicle was worth before the accident. 

Then, talk to a dealership or auto professional in this industry to see what the value is worth after the accident. You can then take these values and figure out what the diminished value amount is. Knowing this figure is important because it helps you accurately assess compensation offers from your insurance company, whether you're being low-balled or receiving a fair amount. 

Auto accidents happen every single day, and they can cause you a lot of stress because your vehicle won't be as valuable anymore. In this case, pursuing a diminished auto value claim is a good idea. Follow the right protocol from the beginning and this process should work out. 

To learn more about diminished auto value claims, consult a resource in your area.