Disclaimer
This article provides general information about diminished value claims under Wyoming law and does not constitute legal advice. Consult a licensed attorney about your specific situation.
Detailed Answer
Understanding Diminished Value
Diminished value refers to the reduction in market value your vehicle suffers after an accident, even when repairs restore it to pre-loss condition. Insurers often pay for repairs but resist compensating for this loss in resale value. In Wyoming, you can request this separate payment from your own or an at-fault driver’s insurance policy.
Wyoming Law on Fair Claims Settlement
Wyoming’s Unfair Claims Settlement Practices Act requires insurers to handle claims in good faith and investigate and settle promptly (Wyo. Stat. § 26-13-109). Insurers must not misrepresent policy provisions or refuse a claim without proper investigation.
Step-by-Step Guide to Submitting Your Diminished Value Claim
- Review Your Policy: Check your collision coverage and see if your policy specifically includes diminished value or “betterment” limits. Note deadlines for reporting claims.
- Obtain a Professional Diminished Value Appraisal: Hire a qualified auto appraiser who issues a written report stating the vehicle’s pre-accident value, post-repair value, and the difference (diminished value).
- Compile Supporting Documents: Include the appraisal report, repair invoices, photos of damage, proof of prior condition (maintenance records, pre-accident photos) and your insurance policy declarations.
- Draft a Written Demand Letter: Address it to your insurer’s claims department. Clearly state the accident date, policy number, claim number, and request payment of the appraised diminished value amount. Cite your insurer’s duty under Wyo. Stat. § 26-13-109 to settle in good faith.
- Submit Your Claim Package: Send the demand letter, appraisal, and documentation via certified mail or the insurer’s preferred electronic portal. Keep copies and delivery confirmations.
- Follow Up in Writing: If you do not receive a response within 30 days, send a follow-up letter reminding them of their duties under Wyoming law. Record all call logs and emails.
- Consider Mediation or Appraisal Clause: If your insurer denies or undervalues the claim, review your policy’s appraisal clause or dispute resolution provision. You may invoke an appraisal panel or mediation to resolve valuation disputes.
When to Seek Legal Help
If the insurer engages in unfair practices—such as refusing to investigate the diminished value component, misrepresenting policy language, or failing to respond—you may have a bad faith claim under Wyo. Stat. § 26-13-109. An attorney can help you negotiate or file a lawsuit if negotiations stall.
Helpful Hints
- Document all communications and keep a timeline.
- Use a licensed, independent appraiser—not your repair shop.
- Check state deadlines for filing suit—Wyoming’s statute of limitations for contract claims is four years (Wyo. Stat. § 1-3-105).
- Maintain your vehicle’s maintenance records to prove pre-loss condition.
- Be polite but persistent—insurers respond to organized, well-documented claims.