Detailed Answer
Diminished value refers to the difference between a vehicle’s fair market value immediately before an accident and its value right after repairs. Missouri law recognizes that even a perfectly repaired car can carry a stigma that lowers its resale value.
Follow these steps to submit a diminished value claim in Missouri:
- Review Your Policy. Examine your auto insurance policy for coverage terms, deadlines, and any appraisal clauses.
- Determine Pre-Accident Value. Use guides like Kelley Blue Book or NADA, or hire a certified appraiser to establish your vehicle’s market value before the accident.
- Collect Repair Documentation. Gather all repair invoices, shop estimates, photographs of the damage, and proof that repairs met OEM standards.
- Draft a Demand Letter. Write a clear letter to your insurer stating the diminished value amount you seek. Attach your valuation report and repair records.
- Invoke Appraisal if Needed. If the insurer disputes your figure, request appraisal under Missouri’s insurance code: RSMo § 379.203 (link).
- Submit Your Claim. Send the demand letter and all supporting documents to your insurer’s claims department via certified mail. Keep copies of everything.
- Negotiate in Good Faith. Missouri requires prompt, fair, and equitable settlements: RSMo § 375.1004 (link). Be ready to discuss and adjust your demand.
- Consider Mediation or Lawsuit. If negotiations stall, you can seek mediation through the Missouri Department of Insurance or file a breach-of-contract suit. Note the five-year statute of limitations for contracts: RSMo § 516.120.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
Helpful Hints
- Start early to meet policy deadlines and avoid lost rights.
- Keep a detailed log of all communications with your insurer.
- Use certified mail or email read receipts to document submissions.
- Consider hiring an independent appraiser for an unbiased valuation.
- Explore Missouri’s free mediation services before taking legal action.