Diminished value refers to the loss of a car’s resale value due to damage in an auto accident or another type of incident. Cars depreciate over time. However, a crash can result in an immediate drop in a car’s value. A previously wrecked car is less desirable to buyers and more challenging to sell. If another driver bears responsibility for damage to your car, you may have the right to seek financial compensation for your vehicle’s diminished value through a car accident claim.
The repair or replacement of a car is just one of many things that accident victims face after a serious accident. A diminished value claim may be part of a broader personal injury claim seeking compensation for a range of losses, such as medical expenses and lost income. The attorneys at Bayuk Pratt are committed to demanding full compensation for the injured people we represent.
Our legal team has over 50 years of combined experience and a track record of recovering more than $300 million in settlements and court awards. Our skilled legal representation has earned us the respect and trust of numerous clients our law firm has served.
Contact Bayuk Pratt for an initial case evaluation with a car accident attorney. Learn more about your legal options and the process of filing a diminished value claim in Georgia.
What Is a Diminished Value Claim in Georgia?
A diminished value claim allows a vehicle owner to seek compensation for the reduced value of their car due to collision damage caused by someone else. There are three primary types of diminished value claims:
- Inherent Diminished Value – A vehicle owner may file an inherent diminished value and seek compensation for the loss of value their vehicle experiences because it sustained damage in an accident. Even after you repair your car, it may have a lower value than an identical vehicle with the same mileage that has not been wrecked. People view cars that have had damage as less desirable.
- Repair-Related Diminished Value – A diminished value claim may seek compensation for reduced vehicle value caused by poor repairs, or the use of aftermarket parts rather than factory parts made by the original equipment manufacturer. Cosmetic damage, such as mismatched paint on replaced body panels or substandard repair work, may serve as the basis for a diminished value claim related to repairs.
- Immediate Diminished Value – A vehicle owner may pursue an immediate diminished value claim to recover compensation for the difference in value between their car’s pre-accident condition and the vehicle’s condition immediately after an accident.
An insurance company may make an offer to settle a diminished value claim that is far less than the full value of the claim. You can protect your interests by having a knowledgeable car accident lawyer guide you through the legal process and negotiate with the at-fault party’s liability insurance company on your behalf.
When Does a Vehicle in Georgia Qualify for a Diminished Value Recovery?
A diminished value claim may be in order if your car was damaged in an accident caused by another driver. Even if your vehicle sustained no visible damage in a crash, the fact that the car will now have an accident history can reduce its resale or trade-in value.
Diminished value claims are often filed against the at-fault party as part of broader personal injury lawsuits seeking compensation for medical expenses, lost wages, pain and suffering, and vehicle repair costs.
What Is the Process for Filing a Diminished Value Claim After a Georgia Car Accident?
Pursuing a diminished value claim after a car accident in Georgia typically involves several steps:
- First, you should document your vehicle’s damage. Take photos of visible damage and keep all records related to the inspection and vehicle repair costs. You should obtain appraisals of your vehicle after the accident and after repairs. Finally, you can gather valuations for your vehicle before the accident from sources such as Kelley Blue Book and the NADA Guides.
- Next, you should collect evidence needed to prove the other driver’s fault for the accident that damaged your car. Common types of evidence include police reports, accident scene photos of the vehicles involved, surveillance camera or traffic camera footage, dashcam video, and eyewitness statements.
- Finally, you can work with an Atlanta car accident attorney to determine the loss of value of your vehicle caused by the accident.
Once an attorney has calculated your vehicle’s diminished value, the attorney will submit an insurance claim with the at-fault driver’s insurance company, along with documentation proving the driver’s liability for the crash. The attorney will seek to negotiate with the insurance company to determine fair settlement for your diminished value claim. In some circumstances, you may need to file a diminished value claim with your insurance company if you have comprehensive/collision coverage.
Can You File a Diminished Value Claim If You Were Partly Responsible for the Accident?
Even if you bear some responsibility for causing a car accident that damaged your vehicle, you may still seek compensation in a diminished value claim. Georgia follows a modified comparative negligence rule for awarding damages in car accident claims. Under the rule, you can recover compensation for losses you sustained in a car accident for which you bear less than 50 percent responsibility. However, any share of fault you bear for the accident can reduce your financial recovery proportionally in a diminished value claim. For example, suppose you bear 30 percent responsibility for a car accident, and your vehicle suffered a $10,000 reduction in value. In that case, a court may reduce your recovery by $3,000 to reflect your share of fault for the crash.
Will Filing a Diminished Value Claim Increase Your Insurance Premiums?
Filing a diminished value claim may increase your insurance premium under certain circumstances. Although filing a claim against an at-fault driver’s insurance should not increase your insurance premiums, you may see a rate increase if you file a claim against the comprehensive/collision coverage in your insurance policy. Furthermore, some insurers view an accident history as a risk factor for future accidents, even if you bear none of the fault for the crash.
What Is the Statute of Limitations for Filing a Diminished Value Claim in Georgia?
In Georgia, the statute of limitations requires you to file a car accident lawsuit to recover compensation for your vehicle’s diminished value within four years of the crash. If you file a lawsuit more than four years after an accident, the court may dismiss your claim as untimely.
Contact a Georgia Car Accident Lawyer
If your car has sustained damage in a collision, you may have the right to pursue compensation from the at-fault driver’s auto insurance coverage. Contact Bayuk Pratt today for a free case evaluation with an experienced car accident attorney. We’ll review your car accident case and discuss your legal options for seeking fair compensation for the property damage to your vehicle and its reduced value.
Our founding partners previously served as legal counsel in some of the world’s largest defense law firms. We know how insurance companies evaluate auto insurance claims and the strategies they employ during the settlement process to minimize payouts. We utilize that insider knowledge to help car accident victims pursue maximum compensation for all their losses following a car crash, including the diminished value of their vehicle. Our battle-tested lawyers will fight as hard to seek the recovery you need to move forward.
