Detailed Answer
Diminished market value refers to the loss in a vehicle’s resale value after it sustains damage, even when repairs restore it to a safe and functional condition. In Wisconsin, you may recover diminished market value from the at-fault party’s insurer as part of a third-party property damage claim. While Wisconsin’s auto insurance statutes do not explicitly address diminished value, insurers must adhere to fair claim settlement standards under Wis. Stat. § 632.32 and settle all covered claims reasonably and promptly.
- Determine Pre-Accident Value: Use reputable sources such as Kelley Blue Book, NADA Guides, or a professional auto appraiser to establish the vehicle’s market value immediately before the accident. Document this valuation with a dated report or invoice.
- Assess Post-Repair Value: Obtain an independent appraisal after repairs. Choose an appraiser experienced in diminished value assessments. The appraiser will consider the scope of repairs, vehicle history, and market perception. Record the appraisal in a formal report.
- Calculate the Difference: Subtract the post-repair value from the pre-accident value. The result equals the diminished market value. For example, if the pre-accident value was $15,000 and post-repair value is $13,500, the diminished value is $1,500.
- Compile Supporting Documents: Gather repair invoices, part receipts, appraisal reports, and photographs showing damage before and after repairs. Clear documentation strengthens your claim.
- Meet Statute of Limitations: File your property damage claim within six years of the accident. Wisconsin’s statute of limitations for property damage is Wis. Stat. § 893.54. Claims filed after this period generally face dismissal.
Helpful Hints
- Photograph damage from multiple angles before and after repairs.
- Keep repair estimates and final invoices organized in a binder or digital folder.
- Obtain at least two independent appraisals to support your valuation.
- Consult your insurer’s claim-handling guidelines but focus on third-party claims for diminished value.
- Consider hiring an attorney if the insurer undervalues your claim or denies payment.
Disclaimer: This article provides general legal information under Wisconsin law and does not constitute legal advice. For advice specific to your situation, consult a qualified attorney.