Disclaimer: This article is for informational 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 difference between your vehicle’s fair market value before an accident and its value after repairs. In Wisconsin, auto insurers must pay the actual cash value of a loss under Wis. Stat. § 632.32. This payment covers both physical damage and any reduction in market value.
Follow these steps to submit a diminished value claim:
- Review your policy: Confirm that your collision or comprehensive coverage includes diminished value claims. Note any deadlines or proof-of-loss requirements.
- Document pre-accident value: Gather photos, maintenance records, valuation guides and vehicle history reports to establish your car’s market value before the crash.
- Obtain an independent appraisal: Hire a certified appraiser to calculate the diminished value. A detailed appraisal report provides objective support for your claim.
- Prepare a demand package: Write a clear demand letter to your insurance adjuster. Attach the appraisal report, before-and-after photos, repair invoices and your policy declarations page.
- Submit the claim: Send the demand package via certified mail or through the insurer’s online portal. Keep copies of all documents and proof of delivery.
- Follow up: If the insurer delays, undervalues or denies payment, request a written explanation. You may invoke your policy’s appraisal or arbitration clause or file a complaint with the Wisconsin Office of the Commissioner of Insurance.
Helpful Hints
- Act promptly: Insurers often set strict deadlines for diminished value claims.
- Keep detailed records of every communication, including dates, names and summaries.
- Request a written denial if your claim is refused; this helps preserve your rights.
- Review your policy’s appraisal provision—this can force the insurer and you to use independent appraisers.
- Consider consulting a lawyer if the insurer fails to respond or offers a low settlement.