Detailed Answer
When a vehicle sustains damage in a wreck and is fully repaired, its market value often falls below the pre-accident level. This difference, known as “diminished value,” may be recoverable from the at-fault driver’s insurer under Wyoming law. While Wyoming statutes don’t set a fixed diminished-value formula, they prohibit unfair claim practices and require insurers to handle claims in good faith (see Wyo. Stat. Ann. § 26-18-115).
1. Determine Pre-Accident Fair Market Value
- Obtain values from reputable pricing guides (e.g., Kelley Blue Book, NADA).
- Request a written appraisal from a certified vehicle appraiser.
- Document mileage, vehicle condition, options and local market factors.
2. Assess Post-Repair Market Value
- Collect comparable listings for similarly repaired vehicles in your area.
- Secure a second professional appraisal focusing on resale value after repair.
- Factor in repair quality, remaining damage history disclosures (e.g., Carfax).
3. Calculate Diminished Value
Subtract the post-repair market value from the pre-accident value. For example:
Pre-accident value: $20,000
Post-repair value: $18,000
Diminished value: $2,000
This raw figure may be adjusted for mileage or vehicle wear. Many appraisers use a “17c” formula (industry standard) or customize based on comparable sales.
4. Document Your Claim
- Compile appraisals, used-car comparables, repair invoices and photos.
- Prepare a written diminished-value demand letter addressed to the insurer.
- Reference insurer’s duty under Wyo. Stat. Ann. § 26-18-115 (Unfair Claim Practices).
- Submit within any policy deadlines and keep records of delivery.
If the insurer denies or undervalues your demand, you may file a complaint with the Wyoming Department of Insurance or seek small-claims court recovery (up to $12,000 for most courts). For complex disputes, consider consulting an attorney skilled in first-party insurance claims and evidence rules (see Wyo. Stat. Ann. §§ 1-12-101 through 1-12-109 on expert testimony).
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Helpful Hints
- Photograph all damage before and after repairs from multiple angles.
- Keep all repair invoices, parts receipts and shop estimates.
- Collect three or more comparable sales listings to support market adjustments.
- Engage a certified appraiser familiar with diminished-value methodologies.
- Promptly notify the insurer in writing of your diminished-value claim.
- Retain copies of all correspondence and delivery confirmations.