Detailed Answer
A diminished value claim seeks compensation for the loss in your vehicle’s market value after repairs. Rhode Island law does not define diminished value explicitly, but courts recognize it as the difference between pre-accident value and post-repair value. You pursue this claim with your insurer or the at-fault party’s insurer.
1. Review Your Insurance Policy
Check your policy under “loss settlement” or “diminished value” sections. Note any time limits. Many policies require notice within 30 to 60 days after the accident.
2. Gather Supporting Documentation
- Pre-accident valuation: Obtain a professional appraisal or use recognized guides like Kelley Blue Book.
- Repair estimates: Secure detailed invoices from an authorized repair shop.
- Post-repair appraisal: Hire an independent appraiser to assess your vehicle’s current market value.
- Photographs: Take clear before-and-after photos of your vehicle.
3. Submit the Diminished Value Claim
Contact your insurer’s claims department or the at-fault driver’s insurer. Request the diminished value claim form if available. If not, write a demand letter that includes:
- Policy and claim numbers
- Date, time, and location of the accident
- Vehicle identification number (VIN)
- Detailed calculation of diminished value
- All supporting documents
Send your request by certified mail and keep copies for your records.
4. Insurer’s Response and Negotiation
An insurer typically acknowledges your claim within a reasonable time under Rhode Island’s Unfair Claim Settlement Practices. Review their response carefully. If the offer is too low, provide further evidence and negotiate. You may reference the Department of Business Regulation’s guidelines at dbr.ri.gov/insurance.
5. Rhode Island Statute of Limitations
Diminished value claims fall under contract law and generally carry a six-year statute of limitations. See R.I. Gen. Laws § 9-1-13 for details: R.I. Gen. Laws § 9-1-13.
Helpful Hints
- Act promptly—file the claim within your policy’s deadline to avoid denial.
- Keep detailed records of all communications with your insurer.
- Consider hiring a public adjuster or independent appraiser if your insurer undervalues your claim.
- If the insurer denies or undervalues your claim, file a complaint with the Rhode Island Department of Business Regulation at dbr.ri.gov/insurance.
- Maintain copies of every document you submit or receive.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.