What is Diminished Value?

Almost everyone has been in a car crash and had to get their vehicle repaired. Whether you were at fault, someone else hit you, a tree fell on the car, or any other crazy event that caused damage, you've likely had to visit a repair shop and make an insurance claim. Almost every time a car is repaired from a crash, there is Diminished Value.

What actually is Diminished Value? The idea is simple: When you get your car fixed, even if the car was completely repaired, your car has lost value simply because it was in a crash.

Imagine you are going to purchase a new car. They show you two vehicles that are seemingly exactly the same. However, when you look at the Carfax, you see that one of them was in a pretty serious wreck and had to get repaired. Obviously, you'd rather have the car that wasn't in the crash. Similarly, if you find a really good deal on a car, there's a good chance that the price is low because the car had been in a previous accident. But do insurance companies actually pay?

Insurance companies are required by law to compensate you for the diminished value of your car after a crash. Most of the time, the more serious the damages, and the nicer the vehicle, the higher the diminished value. But it's not that simple. The insurance companies will try everything they can to avoid paying you or to avoid paying you fair value. If insurance companies paid fairly, attorneys wouldn't have jobs in the first place. Unfortunately, it can be extremely time-consuming and tedious to fight with the insurance companies.

We at Gastley Law are experienced litigators who have been fighting insurance companies every step of the process. Give us a call for a free case evaluation to let us see if you have a diminished value claim after your car has been in a crash.

Call 770-557-2838!

What are some common tricks insurance companies use to avoid paying diminished value?

1. The runaround. Insurance companies are professionals at putting you on hold and frankly wasting your time until you give up on the claim. They make it confusing to get ahold of the right person, they don't call you back, and they are only available during normal work hours. Most companies even make you fax them documents. You need a law firm that knows how to work against these companies and navigate their complex phone systems to handle your case quickly.

2. Lowballing. Most people don't even know what diminished value is. The insurance companies frequently will mail you a few hundred dollars as a check and make you think they are doing you a favor. Don't fall for it! Your diminished value claim is worth more than that. Even if you have already cashed the check, give us a call to help.

3. Making you file a lawsuit. Lawsuits are scary. Most people don't know what they are or how to file them on their own. Fortunately, we have gotten the process down to a science so we can quickly file a claim for you. Gastley Law fronts all court costs and appraisal fees so all you have to do is sit back, wait, and let us handle everything on your diminished value claim.

Still not sure?

Check out our other posts for more detailed and in-depth information about the process.