Dealing with car insurance claims is never as easy as it seems. If you aren't in the industry even things like understanding the lingo can be confusing. Dealing with a diminished value claim should be fairly simple, but often the insurance company may decided to make the process more difficult. Diminished Value is a term that refers to the vehicle’s value loss amount. It is figured as the difference between a vehicle’s original value before the wreck and the vehicle’s value after the wreck. Fixing the damaged vehicle does not fix the damaged value. Even if the vehicle repair is professional and quality, the value is not restored by the repair shop. Collecting for the diminished value claim can get you back to 100% again. To ensure you’re adequately compensated, here’s what you need to remember.

How to Deal With Diminished Value Claims

1. Be On Guard

When filing a diminished value claim, don't assume the insurance company is offering the a fair settlement. The insurance company is simply trying to minimize their cost, which is not typically what is reasonable or fair for you.

Furthermore, there are different ways to calculate the diminished value; some are less generous in their assessment than others. To illustrate, consider the 17C formula, which is used by many insurance companies. This formula originates from a class-action lawsuit in Georgia and can be limiting for car owners—it stipulates that the maximum diminished value claim amount paid by an insurance company does not exceed 10% of a car’s current value. 

2. Be Informed

Learning about the basic claims process in your state is beneficial since every state has its own laws. Also, refer to price guides like NADA® or Kelley Blue Book® for values. By researching these aspects on your own, you’ll be better prepared to engage and ask “why” if an insurance company gives you an unfair offer. Don’t be shocked or think it is fair if the insurance company declines to pay you from the onset. Remember, if you go away, then the insurance company will simply keep the money they owe you.

3. Be Sensible With Your Request

Although diminished value insurance claims are negotiable, don’t aim too high or low. If you can’t support your request, it will be impossible to fight all the way through the diminished value process. If you have the diminished value professionally appraised, it’s much easier to arrive at a realistic number and the appraiser can become the expert in the event that legal action is required. 

For hands-on guidance and assistance on successfully filing a diminished value claim, contact WreckExpert.com. Based in Kansas and Missouri, they have more than 20 years of experience in the industry. They’ll accurately appraise the current value of your car and advocate on your behalf, thereby making the process much easier. There are windows of opportunity so don’t delay any further. If you’re contemplating or ready to file a claim, call them today at (913) 444-4636 or send a message through their website.