Detailed Answer
After a Rhode Island car accident, your vehicle may lose value even after repairs. This loss is called “diminished market value” (DMV). To recover DMV from the at-fault driver’s insurer, you must calculate and document this loss carefully.
Step 1: Determine Pre-Accident Market Value
Use at least two reputable valuation sources such as Kelley Blue Book, NADA Guides, or local dealer listings. Document the vehicle’s year, make, model, mileage, and condition. Obtain printouts or screenshots dated before the accident.
Step 2: Assess Post-Repair Market Value
Obtain updated FMV as if the vehicle had a clean history. Check listings for similar vehicles with no accident record. Adjust for mileage and condition. Save records and listings.
Step 3: Calculate Diminished Market Value
Subtract the post-repair FMV from the pre-accident FMV. For example, if pre-accident value was $15,000 and post-repair value is $13,500, the DMV is $1,500.
Step 4: Gather Supporting Documentation
- Repair invoices and work orders showing repairs to structural, mechanical, and cosmetic damage.
- Vehicle history report (e.g., Carfax) confirming accident record.
- Independent appraisal from a certified auto damage appraiser.
- Photos of damage and repairs.
- Valuation printouts for pre- and post-repair FMV.
Step 5: Submit Your Claim
Rhode Island law requires insurers to handle claims in good faith and promptly under R.I. Gen. Laws § 27-2.1-3. Send a written demand letter to the at-fault party’s insurer including:
- Statement of accident details and responsibility.
- Calculation of diminished value with supporting documents.
- Deadline to respond (typically 30 days).
If the insurer denies or undervalues your claim, you can file a complaint with the Rhode Island Department of Business Regulation, Division of Insurance: DBR Insurance.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
Helpful Hints
- Document all communications with insurers in writing.
- Keep a detailed log of dates, times, and names for phone calls.
- Get multiple appraisals to strengthen your claim.
- Consider hiring an auto damage expert if the DMV exceeds $1,000.
- File complaints with DBR promptly if the insurer delays or denies without justification.