Detailed Answer
When your vehicle sustains damage in a crash and functions as before after repairs, it may still lose resale value. This loss—called diminished value—represents the difference between market value before the accident and market value after repairs. Montana law does not explicitly address diminished value claims, but you can assert your right under your auto policy and related unfair claim practices statutes.
1. Review Your Auto Insurance Policy
Carefully examine your collision or comprehensive coverage. Look for sections on actual cash value, appraisal clauses, and claim procedures. These provisions dictate whether and how you can recover diminished value.
2. Document Vehicle Condition and Repair Costs
• Obtain an itemized repair estimate from a licensed auto body shop.
• Take dated photographs of vehicle damage and repairs.
• Get a pre-accident vehicle appraisal or comparable sales listings.
3. Obtain an Independent Diminished Value Appraisal
Hire a qualified appraiser who specializes in diminished value. The appraiser will calculate how much less your vehicle is worth even after high-quality repairs. This report forms the backbone of your claim.
4. Prepare and Submit Your Claim Package
Include:
- A claim cover letter detailing the accident date and policy number.
- Repair invoices and photographic evidence.
- The independent diminished value appraisal report.
- Applicable sections of your insurance policy (e.g., appraisal clause).
Send your package via certified mail to your insurer’s claim department. Retain copies of everything you send.
5. Cite Relevant Montana Statutes
Montana law requires insurers to process claims in good faith and without unreasonable delay:
- MCA 33-18-201 (Unfair methods and trade practices).
- MCA 33-18-215 (Delay in payment or denial of claims prohibited).
6. Insurer Response and Appraisal Clause
By law, your insurer should respond within 30 days. If it denies or undervalues your claim, review your policy’s appraisal clause. This procedure lets both you and the insurer each select an appraiser; those appraisers then choose an umpire to resolve value disputes.
7. Next Steps if Your Claim Stalls
If you encounter unreasonable delays or unfair denials, you can:
- File a complaint with the Montana Commissioner of Securities and Insurance.
- Invoke policy appraisal or dispute-resolution clauses.
- Consult a licensed attorney about potential bad-faith insurance claims.
Helpful Hints
- Keep a detailed claim diary with dates, times, and names of insurer representatives.
- Check Montana’s two-year statute of limitations on property damage claims (MCA 27-2-208).
- Use certified mail or electronic tracking for all communications.
- Confirm your policy’s deadlines for submitting claims to avoid forfeiture.
- Consider mediation or appraisal before pursuing litigation to save time and costs.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance tailored to your situation.