Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
In Minnesota, a diminished value claim seeks compensation for the difference between your vehicle’s market value before an accident and its value after repairs. While Minnesota law does not set a fixed formula for diminished value, courts and insurers look for solid documentation to establish the post-repair loss in value.
1. Pre-Accident Condition Documentation
Obtain a professional appraisal dated before the collision. A certified vehicle appraiser or dealer valuation report can show your car’s fair market value before damage. This baseline is crucial for comparing post-repair value.
2. Repair Invoices and Estimates
Keep all repair shop documents. Detailed invoices listing parts replaced, labor hours, paint codes and materials help insurers verify the scope and quality of repairs.
3. Before and After Photographs
Take clear, high-resolution photos of your vehicle from multiple angles before repairs begin and after they’re complete. Close-ups of repaired panels, paint jobs and any replaced parts highlight the restoration work.
4. Vehicle History Report
Order a vehicle history report from a reputable source (e.g., Carfax or AutoCheck). This report will record the accident, repair history and any title brands (such as “salvage” or “rebuilt”). A branded title often reduces resale value further.
5. Expert Diminished Value Appraisal
Hire an independent appraiser who specializes in diminished value. Their written report should explain the methodology, cite comparable sales of similar vehicles, and calculate your specific loss in value.
6. Comparable Market Sales
Gather advertisements and sales data for similar makes, models, years and mileage. Listings from dealers and private sales show what buyers pay for undamaged vehicles like yours.
7. Statements from Dealers and Mechanics
Obtain written letters from local dealers or certified mechanics confirming that a history of damage makes it harder to sell and lowers resale value.
8. Insurance Policy and Statutory References
Review your auto insurance policy for “diminished value” or “loss in value” coverage. Under Minnesota’s no-fault law, insurers must pay for covered property losses. See Minn. Stat. § 65B.51 (no-fault requirements for property damage). While that statute doesn’t define diminished value, it obligates insurers to cover documented losses.
Helpful Hints
- Document each step with dates and signatures when possible.
- Keep original repair parts in case you need to show proof of replacement.
- Get multiple appraisals to strengthen your position.
- Send written requests to your insurer and request a written response.
- Consider appraisal or mediation if your insurer undervalues your claim.