Most people realize that the insurance company will cover the cost of repairs after an accident. However, few realize that, in Virginia, an insurance company will also pay for the value of the vehicle lost through a Diminished Value Claim. This claim can help you recover the diminished value of your vehicle following the accident, ensuring that you receive full compensation for the financial impact of the collision.
How to Make a Diminished Value Claim in Virginia
Insurance companies exist to make money. Consequently, they will rarely tell you about claims you can make unless you ask. Thus, very few people make a diminished value claim in Virginia.
This is a shame because this claim isn’t difficult to make. As long as your insurance policy covers diminished value, you just have to file a claim against your policy. The process is similar to the process of filing a car accident claim.
Once you file, your insurance company will investigate. The investigator is trying to determine the value of your car before and after the accident. If there is a significant change, you will get a large payment.
When You Should Make a Diminished Value Claim in Virginia
There is no reason to make a diminished value claim if you will only receive a few dollars. And that is what usually happens when your car is very old or has previous damage. The following are situations that make it worth filing this claim.
Your Car Is Close to Brand New
There is an old saying that a car loses half its value when you drive it out of the dealership parking lot. That is a bit of an exaggeration, though cars do lose value quickly.
If your car is less than a year old and has less than 5,000 miles on it, it probably retains most of its value. However, a car accident destroys that value. Even if your car only has a few hundred miles on it, it will lose a lot of value in an accident, no matter what repairs it receives.
Your Car Is Unique
The Pontiac Firebird hasn’t been in production since 2002. This type of vehicle is gaining value every year due to its rarity. Many other rare cars have similar value.
If you have a rare or unique car, it could be worth lots of money in a diminished value claim.
Contact Our Law Firm Today
If you think your car lost significant value in a car accident in Virginia, contact The Joel Bieber Firm to learn more about your legal options.