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
Indiana law allows vehicle owners to recover the diminished market value of their cars following a collision. Diminished market value represents the difference between your vehicle’s fair market value immediately before the accident and its market value after repairs. To calculate and document this loss, follow these key steps:
1. Determine the Pre-Accident Value
Use reputable valuation guides such as Kelley Blue Book or NADA to find your vehicle’s fair market value just before the crash. Compare “private party” and “dealer retail” listings for similar makes, models, years, mileage, and options. Save screenshots or printed copies of these valuations as proof.
2. Obtain a Post-Repair Appraisal
After completing all repairs, hire an independent, certified auto appraiser. The appraiser inspects your vehicle’s condition, notes repair quality, assesses mileage and equipment, and estimates its post-repair market value. Request a detailed written report and keep the original.
3. Calculate the Diminished Value
Subtract the post-repair appraisal value from the pre-accident market value. For example, if your car was worth $15,000 before the crash and $13,000 afterwards, the diminished market value equals $2,000 ($15,000 – $13,000).
4. Compile Supporting Documentation
Gather the following evidence:
- Repair invoices and parts receipts
- Independent appraisal report
- Market valuation reports (screenshots or printouts)
- Photographs of your vehicle before and after repairs
- Insurance correspondence and claim numbers
With these documents, prepare a written demand for diminished value damages. Send it to the at-fault driver’s insurer via certified mail. Under Indiana Code § 34-51-3-8, you can file a lawsuit for property damage up to ten years after the accident if the insurer denies or undervalues your claim.
Helpful Hints
- Cross-check at least two valuation sources to strengthen your pre-accident value estimate.
- Choose an appraiser experienced in Indiana diminished value claims.
- Organize all documents chronologically in a single file or digital folder.
- Send demand letters via certified mail with return receipt to track delivery.
- Note any insurer deadlines for appraisal or notice and comply promptly.
- Consider consulting an attorney if the insurer undervalues or denies your claim.