Detailed Answer
After a collision and subsequent repairs, your vehicle often loses value because buyers pay less for a car with an accident history. That difference is called “diminished market value.” Calculating and documenting this loss helps you recover fair compensation from the at-fault driver’s insurer under Mississippi law.
Disclaimer: This article provides general information only and does not constitute legal advice.
1. Determine Pre-Accident Market Value
Use established pricing guides—like Kelley Blue Book or NADA—to find the fair market value just before the crash. Note mileage, trim level, options and regional adjustments. Keep screenshots or printed pages showing the value and date.
2. Establish Post-Repair Market Value
Obtain an independent diminished-value appraisal from a certified auto appraiser. They compare your repaired vehicle—considering repair quality, mileage and history—to similar makes and models without accident history. The appraiser issues a report stating the post-repair market value.
3. Calculate Diminished Value
Subtract the appraiser’s post-repair value from the pre-accident value:
Pre-Accident Value – Post-Repair Value = Diminished Market Value
For example, if your vehicle was worth $15,000 pre-accident and $13,000 after repairs, the diminished value is $2,000.
4. Gather Documentation
- Repair invoices showing parts, labor and paint used
- Photos of damage before, during and after repairs
- Appraiser’s detailed diminished-value report
- Pre-accident value documentation from pricing guides
- Communication records with insurers
5. File Your Claim Under Mississippi Insurance Law
Mississippi law requires insurers to conduct a fair, prompt and equitable investigation of claims (Miss. Code §83-9-1). If the insurer and you disagree on value, you may invoke the policy’s appraisal provision or pursue a third-party claim against the at-fault driver. Under Miss. Code §83-9-17, an appraisal clause lets both sides submit independent appraisers and an umpire to resolve valuation disputes.
If the insurer denies or undervalues your diminished-value claim, you can file suit in county or circuit court. You must prove: (1) liability of the other driver; (2) vehicle damage and cost of repairs; and (3) the amount of market-value loss, supported by an expert appraisal.
Helpful Hints
- Start the diminished-value claim immediately after repairs to preserve evidence.
- Use a licensed, independent appraiser with auto damage experience.
- Keep all repair and appraisal documents in one organized file.
- Review your insurance policy for appraisal and dispute clauses.
- Don’t accept a quick lowball from the insurer—insist on documented proof of value.
- Consider consulting a local attorney if the insurer refuses a fair settlement.