FastCounsel

Disclaimer: This article provides general information on Pennsylvania law. It does not constitute legal advice. Consult a qualified attorney regarding your specific situation.

Detailed Answer

Under Pennsylvania law, a diminished value claim seeks compensation for the loss in market value of your vehicle after a covered accident. You can submit this claim to the at-fault driver’s insurance company. Follow these steps:

1. Confirm Liability: Obtain the police report or other documentation showing the other driver was at fault. Liability is key to a third-party diminished value claim.
2. Document Repairs: Get a detailed repair estimate or final invoice from a licensed shop. Keep all receipts and photos of the damage before and after repairs.
3. Order a Diminished Value Appraisal: Hire a qualified auto appraiser to calculate the difference between your car’s market value before and after the accident. A certified report strengthens your demand.
4. Prepare a Demand Package: Include the following:
   • Appraisal report showing diminished value amount.
   • Repair estimates/invoices.
   • Photos of damage and repairs.
   • Proof of fair market value before the crash (e.g., Kelley Blue Book or comparable listings).
   • A copy of the police report or liability evidence.
5. Send Your Demand Letter: Address it to the at-fault insurer’s claim department. Use certified mail or a delivery method with tracking. Summarize the claim, attach your documentation, and state a clear deadline for response (usually 30 days).
6. Track Deadlines: Under Pennsylvania’s two-year statute of limitations for property damage claims, you generally must file a lawsuit within two years of the accident. See 42 Pa.C.S. §5524(a)(2): 42 Pa.C.S. §5524(a)(2).
7. Negotiate in Good Faith: The insurer may accept, reject, or counteroffer. Respond promptly and keep records of all communications.
8. Consider Legal Action if Needed: If negotiations stall, you can file a civil lawsuit within the two-year window. Courts may award attorney’s fees if the insurer acts in bad faith under 42 Pa.C.S. §8371.

Note: Pennsylvania law does not require at-fault insurers to cover diminished value, but they often settle to avoid litigation costs. For your own policy, insurers must offer diminished value coverage disclosures under 75 Pa.C.S. §1797: 75 Pa.C.S. §1797.

Helpful Hints

• Keep all communication in writing to create a clear paper trail.
• Get multiple appraisals if you suspect errors in your initial report.
• Review comparable vehicle listings to justify your diminished value amount.
• Use a template demand letter but customize it with your facts.
• Stay professional and concise in all correspondence.
• If the insurer delays without valid reason, note it in writing and consult an attorney.
• Be aware of hidden fees in repair estimates; ask for itemized invoices.