Detailed Answer
Diminished value refers to the difference between your vehicle’s market value before and after a qualifying accident and repair. In Tennessee, you can recover this loss by submitting a claim to the at-fault driver’s liability insurance company.
1. Document Pre-Accident Value
Gather evidence of your car’s market value before the crash. Use resources such as Kelley Blue Book or NADA Guides. Obtain a vehicle history report from Carfax or AutoCheck. Keep photos and maintenance records to support your valuation.
2. Complete Repairs and Collect Invoices
Have your vehicle repaired by a licensed auto body shop. Retain itemized invoices showing all labor and parts. These documents verify that the car returned to proper working order.
3. Obtain an Independent Appraisal
Hire a certified auto appraiser to assess the diminished value. The appraiser compares your repaired vehicle to similar models in your geographic area. An independent appraisal report provides an objective calculation of your loss.
4. Prepare and Submit the Demand Package
Draft a demand letter to the at-fault insurer. Include:
- Independent appraisal report
- Pre- and post-accident market data
- Repair invoices
- Vehicle history report
Send the package via certified mail and request confirmation of receipt. Retain copies of all documents.
5. Negotiate in Good Faith
Tennessee law requires insurers to settle claims promptly and fairly. See Tenn. Code Ann. §56-7-105 (prohibits unfair claims practices). If the insurer responds with a low offer, provide counter-evidence and reiterate your appraisal findings. Document every communication in writing.
6. File Suit If Necessary
If the insurer denies or undervalues your claim, you may file a lawsuit in Tennessee circuit or general sessions court. The statute of limitations for property damage claims is three years. See Tenn. Code Ann. §28-3-105.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Helpful Hints
- Obtain multiple appraisals to compare values.
- Keep detailed records of all interactions and documents.
- Review your policy’s definitions of “actual cash value” and “diminished value.”
- Consider filing in small claims court for losses under $25,000.
- Consult a qualified attorney if negotiations stall or you need courtroom representation.