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
1. Establishing Pre-Accident Value
Start by documenting your vehicle’s fair market value immediately before the accident. Use:
- Alignment of Kelly Blue Book or NADA values.
- Dealership trade-in or private sale quotes.
- Independent appraiser reports showing condition and mileage.
2. Documenting Post-Repairs Value
Prove that even after high-quality repairs, your car’s market price dropped. Gather:
- Independent diminished value appraisals from ASE-certified appraisers.
- Comparisons of similar makes, models, years and mileage before and after repair.
- Quotes from dealerships showing reduced offers on repaired vehicles.
3. Repair and Maintenance Records
Comprehensive repair history supports your claim:
- Detailed invoices listing parts, labor and frame-straightening work.
- Photos of damage stages: before, during and after repair.
- Proof that you completed routine maintenance on schedule, demonstrating overall good condition.
4. Vehicle History Reports
Reports from Carfax or AutoCheck reflect an accident record that can depress value. Provide:
- Full vehicle history report showing accident details.
- Any salvage or title brands recorded after the accident under MCL 257.321: https://www.legislature.mi.gov/mcl-257-321.
5. Legal Framework in Michigan
Under Michigan’s Insurance Code, insurers must not engage in unfair claim practices such as undervaluing claims. See MCL 500.2006: https://www.legislature.mi.gov/mcl-500-2006. If the insurer denies reasonable evidence, you may escalate or file a complaint with the Michigan Department of Insurance and Financial Services.
Helpful Hints
- Obtain at least two independent diminished value appraisals.
- Keep an organized file of all records, estimates and correspondence.
- Take high-resolution photos from multiple angles immediately after the accident and after repairs.
- Compare offers: dealer trade-in, private sale, and auction estimates.
- Review your insurer’s diminished value policy language carefully.
- If negotiations stall, consider appraisal or mediation clauses in your policy.