Detailed Answer
Disclaimer: This information is for educational purposes only and does not constitute legal advice.
After a car accident in Montana, even a flawless repair can’t always restore your vehicle’s full market value. The gap between its pre-accident worth and its post-repair value is known as diminished market value. You can recover that loss from the at-fault party’s insurer under Montana law. Here’s how to calculate and document it.
1. Establish Pre-Accident Market Value
- Use reputable pricing guides (e.g., Kelley Blue Book or NADA).
- Check local listings for comparable vehicles (same make, model, year, mileage and condition).
- Document your sources with screenshots or printouts.
2. Obtain Repair Invoices and Quality Reports
- Retain detailed repair bills showing parts, labor and paint work.
- Get a written inspection report from an auto body shop confirming repairs restored structural and cosmetic condition.
3. Commission a Diminished Value Appraisal
- Hire an independent auto appraiser experienced in diminished value (DV) claims.
- Ensure the appraiser uses the market approach: compare sale prices of similar post-repair vehicles in your area.
- Obtain a written appraisal report stating the DV amount.
4. Calculate Diminished Market Value
- Pre-accident value (A): e.g., $12,000.
- Post-repair fair market value (B): e.g., $11,000.
- Diminished value = A minus B (e.g., $1,000).
5. Document Your Claim
- Compile all evidence: pricing guides, market comps, repair invoices, inspection report and appraisal.
- Prepare a cover letter summarizing the accident, repairs and your DV calculation.
- Send your packet via certified mail to the at-fault driver’s insurer, referencing Mont. Code Ann. § 33-9-202 on unfair claim settlement practices (link).
6. Negotiate or File a Lawsuit
- The insurer may accept your documented amount or offer a lower settlement.
- Negotiate by pointing to your appraisal and market data.
- If negotiations stall, you can file a small claims suit in Montana Justice Court (claims up to $7,000) or District Court for higher amounts.
Helpful Hints
- Start your diminished value claim promptly; some insurers impose deadlines.
- Take photos of your vehicle before repairs begin and after completion.
- Obtain at least two independent appraisals for stronger leverage.
- Keep detailed notes of all communications with insurers and repair shops.
- Consult an attorney if the insurer denies the claim or undervalues your vehicle by a large margin.