Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
Under California law, an insured motorist may recover the diminished value of a vehicle after an accident. Diminished value refers to the loss in market worth that remains even after proper repairs. The process below outlines how to prepare and submit this claim to your own insurer or the at-fault driver’s insurer.
1. Review Your Policy and Deadlines
Before you begin, locate your insurance policy and confirm any time limits for filing a property damage claim. Under California Insurance Code §2071, you generally have one year from the date of loss to submit a written proof of claim for damage to your vehicle. (See: Cal. Ins. Code §2071.)
2. Document Your Vehicle’s Pre-Accident Value
Gather evidence of your car’s market value right before the crash. Use sources such as Kelley Blue Book, NADA Guides, and Equifax Auto Remarketing Value Reports. Print or save screenshots, listings, and dealer quotes to establish a baseline value.
3. Obtain a Diminished Value Appraisal
Hire a certified appraiser or diminished value specialist. They will inspect repair records, photos, and vehicle history to calculate the loss in market value. The report should include:
- Pre-loss market value
- Cost and scope of repairs
- Post-repair market value
- Net diminished value amount
4. Compile Your Claim Package
Assemble the following documents:
- Claim form provided by the insurer
- Copy of the police report or incident report
- Repair estimates and invoices
- Diminished value appraisal report
- Evidence of pre-loss value
5. Submit to the Insurance Company
Send your completed claim package via certified mail or the insurer’s electronic portal. Address it to the claims department and keep proof of submission. Clearly label the claim “Diminished Value Claim” and reference your claim number if you have one.
6. Follow Up and Negotiate
After submission, an adjuster will review your materials. They may request additional information or inspection. Engage in a professional dialogue, present your appraisal findings, and be prepared to counteroffer if the initial settlement offer is too low.
Helpful Hints
- Start early: Gathering evidence can take time.
- Hire a reputable appraiser experienced in diminished value claims.
- Maintain a detailed file of all communications and receipts.
- Be aware of potential depreciation caps in your policy.
- Consider consulting a consumer attorney if the insurer denies or undervalues your claim.