Detailed Answer
This article explains how to submit a diminished value claim to your auto insurer under Mississippi law. A diminished value claim seeks compensation for the loss in your vehicle’s market value after an accident and professional repairs. Mississippi law does not expressly codify diminished value claims, but insurers must follow the Unfair Claims Settlement Practices Act, Miss. Code Ann. § 83-11-105 (linking good-faith handling requirements). Always consult an attorney for advice specific to your situation. This is not legal advice.
1. Understand Diminished Value
Diminished value is the gap between your car’s fair market value before the accident and its value after repairs. It includes two categories:
- Inherent diminished value: Market perception loss despite perfect repairs.
- Repair-related diminished value: Poor-quality repairs, visible damage, or non-OEM parts.
2. Get a Professional Appraisal
Hire a qualified auto appraiser or use a dealership to produce a written report of your vehicle’s diminished value. Include:
- Pre-accident value (using NADA, Kelley Blue Book or similar).
- Post-repair market value.
- Calculation method and comparable sales data.
3. Gather Supporting Documents
- Accident report and claim number.
- Repair invoices and parts receipts.
- Photos of damage before, during, and after repairs.
- Appraisal report and market valuation data.
4. Submit Your Claim in Writing
Send a demand letter to your insurer’s claims department:
- Reference your claim number, policy number, and accident date.
- Summarize your diminished value appraisal and attach all documentation.
- Cite Miss. Code Ann. § 83-11-105 requiring insurers to act in good faith: § 83-11-105.
- Use certified mail or another trackable method.
5. Review the Insurer’s Response
Once the insurer receives your demand, they must investigate and respond within a reasonable time under Mississippi’s Unfair Insurance Practices Act. They may:
- Accept your appraisal and issue payment.
- Challenge the valuation and propose another appraiser.
- Deny the claim, citing policy language or disputing your evidence.
6. Escalate if Necessary
If you disagree with the insurer’s decision:
- Request appraisal under your policy’s appraisal clause, if available.
- File a complaint with the Mississippi Insurance Department.
- Consider small claims court or consult an attorney about breach of contract or bad faith claims.
Helpful Hints
- Document every communication with your insurer.
- Keep copies of all repair and appraisal documents.
- Get at least two independent appraisals when possible.
- Use trackable delivery for letters and documents.
- Review your auto policy’s appraisal clause and deadlines.
- File complaints with the Mississippi Insurance Department if you suspect bad faith.