Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.

Detailed Answer

Diminished value refers to the loss in a vehicle’s market worth after an accident and repair. Even high-quality repairs may not restore your car to its full pre-accident value.

Under New Mexico law, insurers must handle claims fairly and in good faith. See N.M. Stat. Ann. § 59A-16-20 on unfair claim settlement practices. To persuade an insurer to pay your diminished value claim, you need clear, well-documented evidence demonstrating the gap between your vehicle’s pre-accident and post-repair market values.

Key Evidence Types

1. Professional Vehicle Appraisal

Hire a certified appraiser to prepare a written report. It should state the vehicle’s pre-accident value, current market value, and the difference attributable to the collision. Include details on mileage, trim level, cosmetic condition, and local market factors.

2. Pre-Accident Value Documentation

Gather listings or printouts from sources such as Kelley Blue Book, NADA Guides, or local classified ads showing comparable vehicles’ values just before your accident date.

3. Repair Estimates and Invoices

Submit detailed repair estimates, final invoices, and parts receipts. Clearly distinguish between OEM and aftermarket parts, and include labor rates to show the full cost of restoring your vehicle.

4. Before-and-After Photographs

Provide high-resolution photos from multiple angles. Include images of the vehicle immediately after the accident (if available) and photos following repairs, highlighting any paint mismatches, panel gaps, or unresolved cosmetic issues.

5. Maintenance and Service Records

Compile a history of routine maintenance—oil changes, tire rotations, inspections—to demonstrate your vehicle’s consistent upkeep. This helps show that any value loss stems from the collision, not neglect.

6. Comparative Market Analysis

Collect current listings of similar vehicles in your area—same year, make, model, mileage, and options. Note any seller disclosures about prior damage or salvaged titles, and compare asking prices to your vehicle’s estimated values.

7. Expert Affidavits or Testimony

Consider obtaining an affidavit or declaration from an experienced auto appraiser, mechanic, or body shop manager. They can explain how industry standards treat post-repair value loss.

8. Written Insurance Communications

Keep copies of all correspondence with your insurer, including claim forms, emails, denied or undervalued payment letters, and any internal notes they provide.

Helpful Hints

• Send key documents by certified mail or email with read receipts to track delivery.
• Maintain a clear timeline of the accident, repairs, and communications.
• Obtain at least two independent appraisals for comparison.
• Organize your file with labelled tabs: photos, estimates, appraisals, communications.
• Keep copies of everything—insurers sometimes “lose” paperwork.
• Consult a local attorney if the insurer continues to undervalue your claim.