Detailed Answer
Diminished market value refers to the loss in fair market value of your vehicle after a collision and subsequent repairs. Even if repairs restore your car to working order, its resale value often drops because buyers prefer vehicles with no accident history. Under Connecticut law, you can recover this loss as part of your property damage claim in a negligence action.
1. Determine Pre-Accident Market Value
Hire a qualified vehicle appraiser or use reputable guides (NADA, Kelley Blue Book) to establish your car’s fair market value immediately before the accident. Document regional sale prices for identical makes, models, years and mileage.
2. Determine Post-Repair Market Value
After repairs, obtain a second appraisal from an independent expert. Ensure the appraiser inspects the finished work, reviews repair quality and checks for hidden frame damage. Again, compare recent sale listings of similar vehicles.
3. Calculate the Diminished Value
Subtract the post-repair market value from the pre-accident market value. For example, if your car was worth $15,000 before the crash and $13,500 after repairs, the diminished value is $1,500.
4. Document Your Claim
- Appraisal reports (pre- and post-repair)
- Itemized repair invoices and work orders
- High-resolution before and after photos
- Listings of comparable cars in your region
- Written communications with your insurer
Legal Basis Under Connecticut Law
Connecticut courts recognize diminished value as a component of property damage in negligence actions. The general measure of damages equals the difference in fair market value before and after the accident. Additionally, repairers must provide you and your insurer with an itemized contract under Connecticut General Statutes Section 38a-361. Learn more at CGS 38a-361.
Helpful Hints
- Work with an appraiser experienced in diminished value assessments.
- Collect all documentation in a dedicated file, organized by date.
- Send demand letters to your insurer by certified mail and keep copies.
- Get multiple appraisals if you suspect your insurer’s valuation is too low.
- Consider small claims court for claims under $5,000 if negotiations stall.
Disclaimer: This article provides general information and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.