Detailed Answer
In Michigan, a diminished value claim seeks compensation for the loss in your vehicle’s market value after repairs. Unlike repair costs, this claim addresses the reduced resale value caused by prior damage. Under the Michigan No-Fault Act, insurers must handle property damage claims promptly. See MCL 500.3105.
Step 1: Determine Market Value Before and After Repair
First, research your vehicle’s pre-accident fair market value using resources like Kelley Blue Book or NADA guides. After repairs, obtain an independent appraisal of your restored vehicle’s market value. The difference between these two figures represents your diminished value.
Step 2: Obtain a Professional Appraisal
Hire a certified vehicle appraiser experienced in diminished value assessments. A professional report strengthens your claim by explaining methodology, market data, and comparable sales.
Step 3: Compile Supporting Documentation
Gather all relevant documents:
- Pre- and post-repair appraisal reports
- Repair orders and invoices
- Photographs of damage and completed repairs
- Proof of original vehicle condition (e.g., previous sale listings)
Step 4: Submit the Written Claim to the Insurer
Draft a clear demand letter addressed to your insurer’s property claims department. Include:
- Summary of the accident and repairs
- All supporting documentation
- Calculated diminished value amount
Send the letter via certified mail and retain the return receipt. Under MCL 500.3105, the insurer must investigate and respond without unreasonable delay.
Step 5: Address Denials or Delays
If your insurer denies, undervalues, or stalls your claim, review your policy’s appraisal or dispute resolution clauses. You may invoke the appraisal process. For unresolved claims, file suit in Michigan Small Claims Court (claims up to $6,500) under MCL 600.8403, or pursue arbitration or circuit court based on your policy limits. See the Michigan Small Claims Court process for details.
Helpful Hints
- Obtain at least two independent diminished value appraisals.
- Document all communications and send via certified mail.
- Keep detailed photos before and after repairs.
- Review your insurance policy for appraisal and dispute procedures.
- Consider consulting an attorney if you encounter lowball offers or refusals.
Disclaimer: This article is for informational purposes and does not constitute legal advice. Consult a licensed attorney in Michigan for guidance tailored to your situation.