Understanding Diminished Value Claims in California: What You Need to Know!

Sofia returned happily from the body shop. Her car looked good, the damages from the accident were almost covered. Finally, she had the freedom to move around freely, because she got her car back. A few months later, she decided to resell it to get a new one. And the biggest shock from the collision was waiting for her.

The car’s value was greatly reduced, and upon asking why, she was told it was due to the accident. But the repairs were done appropriately, she said. To which she was told, that doesn’t matter, a car with an accident history will not have the same value as a car with a clean history.

This is a common phenomenon for car owners whose vehicles meet with an accident. This reduction in the vehicle’s worth is known as diminished value California. It is further classified into three types including:

Immediate diminished value

The name clarifies itself, the car loses its value on the spot of the accident itself, before receiving any repairs.

Inherent diminished value

This is the most common type of diminished value. It refers to the lowering of a car’s value simply because it has a collision history. No matter how well it has been repaired, it won’t get the same amount as a car of the same make and model but with a clean background.

Repair-related diminished value

This occurs when repairs to the vehicle are not up to standard. Aftermarket products and substandard methods are used to repair the car.

Diminished value claim California- helping you in distressing times!

In California, diminished value claims provide you with an excellent opportunity to gain back your loss. If your car were involved in an accident, even after quality repairs, its value is likely to drop. This is where diminished value claim California steps in. Under this claim, you get to recover the difference between your vehicle’s pre-accident and post-repair value.

How to determine if you are eligible for a diminished value claim in California? Here’s how:

Here is the eligibility criterion to qualify for the claim:

• You were not at fault in the accident. This claim is only for the innocent party.

• The car needs to be damaged enough to receive repairs.

• The car should not be declared a total loss.

• You shouldn’t have received a diminished value claim for the same car previously.

• You can only file the claim with the at-fault driver’s insurance company.

• You need to file the claim within 3 years from the date of the accident.

Steps to file a diminished value claim in California!

Professional appraisal

Professional appraisal by a certified appraiser acts as the most important piece of evidence in the claim process. The appraiser carefully evaluates the car and prepares a comprehensive report showing its pre- and post-accident condition.

Collect supporting documents

These can include your appraisal, accident report, repair bills, vehicle history report, and photos from before and after the accident.

Negotiate

Be ready to negotiate with the insurance company to receive a fair claim amount. Ideally, insurance companies aim to settle for the lowest amount. Hire a reliable team like ADR-Claims to put your best foot forward.

Final Words!

Let no accident bring a halt to your life! Take the help of a diminished value claim to rise and shine!

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