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October 27, 2021

What Is a Diminished Value Claim?

October 27, 2021

If you’ve suffered a car accident in Texas, then one of the things you’re worried about might be the loss of value to your vehicle. Your local car accident lawyer will guide you through each step of the claim and protect your right to compensation.

A car accident can quickly cause financial strain. Medical treatment in the U.S. is at an all-time high and you could be recovering from severe injuries, such as brain damage, spinal cord damage, and severe burns. All while suffering lost wages and the reduction of your vehicle’s value.

Whether your car is new or has been used for quite some time, it’s only reasonable that you want to recover the cost of the diminished value caused, and that is what a diminished value claim is for.

What Is a Diminished Value Claim?

A diminished value claim allows you to recover the difference between the value of your car before and after the accident. In other words, you can recover the value of the financial loss to your car because of the accident.

What Are the Different Types of Diminished Value Claims?

There are different types of diminished value claims a person can pursue, depending on the damage and the condition of your car after repairs.

An inherent diminished value claim is based on the car’s market value after it’s been repaired. Even if it’s “as good as new,” the fact that it was involved in a car accident means its resale value will be significantly lowered, and this entitles you to additional recovery.

A repair-related diminished value is what you’ll use when the mechanic uses generic or low-quality parts to repair your car. For instance, if your car was a Porsche, you’ll want Porsche parts, not generic parts, as replacements. If the car can’t be restored to its original condition, or if the mechanic installed generic parts, the car’s value is significantly diminished.

An immediate diminished value claim is based on the car’s value after the accident but before any repairs. This presumes you won’t get your car repaired, which is why it’s a rarely used diminished value claim.

How Can You File a Diminished Value Claim?

Texas is a diminished value state, which means if you’ve been involved in a car accident in Texas, you can file a diminished value claim.

To prove this, you will have to prove the negligent party’s liability first and then prove your entitlement to damages. Each insurance company may have different procedures for diminished value claims, which is why it’s important to know these rules in addition to Texas laws.

When Can You File a Diminished Value Claim?

Texas law provides that the statute of limitations for diminished value claims is two years from the time your cause of action accrued. If you fail to file your claim within this period, you might be barred from pursuing that claim any further.

Call Gibbs & Crivelli Today

If you’re hurt, unable to work, and suffering, you need compensation that will fund your entire recovery, not just what an insurer wants to pay out. The personal injury attorneys at Gibbs & Crivelli, Slingshot Law, are here to uphold your right to the compensation you’re owed. Insurance companies, especially those of the other party, are rarely your friend when it comes to recovering compensation, and our car accident lawyers know their tactics and will protect you from a reduced settlement.

Our experience in personal injury and car accident cases allows us to assist you in taking back control of your life. When you’re ready to schedule your free case review, call us at 800-488-7840 or fill out the contact form on this page.

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