Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.
Detailed Answer
Under Tennessee law, diminished value refers to the reduction in a vehicle’s market value after an accident and repair. You can seek this loss from the at-fault driver’s insurer. To prevail, assemble solid evidence that quantifies the pre-accident value, documents damage and repairs, and demonstrates the market impact.
1. Pre-Accident Market Value Documentation
Gather proof of your vehicle’s worth before the collision, such as purchase invoices, lease agreements, online valuation reports (e.g., Kelley Blue Book), and maintenance records. This baseline establishes what the car was worth in the local market.
2. Professional Appraisals
Hire a qualified appraiser who specializes in diminished value. A written appraisal with a detailed methodology can carry significant weight. The expert should compare market data for similar vehicles without accident history.
3. Vehicle History Reports
Obtain reports from services like CARFAX or AutoCheck. A clean history report before the crash and an updated report showing the accident helps demonstrate the value drop.
4. Photographic Evidence
Take clear, date-stamped photos of damage before and after repairs. Show all angles to illustrate the extent of damage and visible signs of repair, such as mismatched paint or panel gaps.
5. Repair Records and Invoices
Keep detailed mechanic reports and invoices. Include parts used, labor hours, and any aftermarket components. Discrepancies in repair quality can support diminished value.
6. Expert Opinions and Market Data
Collect statements from auto dealers or industry professionals about buyer reluctance to pay full price for a repaired vehicle. Use comparable sale listings that reflect lower prices for accident vehicles.
Under Tenn. Code Ann. § 56-7-105, insurers must act in good faith and handle claims fairly.
Helpful Hints
- Start documenting immediately: delays can weaken your proof.
- Use licensed appraisers and keep qualifications on file.
- Obtain multiple valuation estimates to support your claim.
- Keep a detailed log of all communications with insurers.
- Consider consulting an attorney if negotiations stall or bad faith arises.