Disclaimer: This is not legal advice. This article provides general information only and may not reflect the most current legal developments. Always consult an attorney for advice regarding your specific situation.
Detailed Answer
Under Virginia law, diminished value refers to the loss in a vehicle’s fair market value after it has been repaired following a collision. In most claims, you calculate diminished value by subtracting the post-repair market value from the vehicle’s pre-accident market value.
1. Determine Pre-Accident Value: Use reputable valuation guides such as Kelley Blue Book or NADA to establish fair market value just before the crash. Document the date, mileage, trim, options and region to support your figure.
2. Estimate Post-Repair Value: Obtain quotes for comparable vehicles of the same make, model, year, mileage and condition in your local market. Adjust for any lingering discoloration, frame concerns or known accident history.
3. Calculate Diminished Value: Subtract the post-repair value from the pre-accident value. For example, if your car was worth $20,000 before the crash and $18,000 after repairs, the diminished value is $2,000.
4. Document the Calculation:
- Dealer or independent appraiser report.
- Repair invoices with parts and labor details.
- High-resolution photographs of damage before, during and after repair.
- Comparable vehicle listings used in valuation.
5. Submit a Claim for Diminished Value: Under Va. Code § 38.2-2218.1, insurers offering property damage coverage must also offer an option for diminished value protection. If you’re not at fault, you may file a third-party claim or pursue your own insurer if you purchased this coverage. See Va. Code § 38.2-2218.1: law.lis.virginia.gov/vacode/title38.2/chapter22/section38.2-2218.1/.
6. Meet Virginia Deadlines: File your diminished value claim promptly—ideally within 30 days of completing repairs—to avoid disputes about cause or value. Keep copies of all communications with the insurer.
Helpful Hints
- Hire an independent appraiser experienced in diminished value assessments.
- Keep detailed repair records and photos organized by date.
- Obtain multiple market-comparable listings to strengthen your valuation.
- Review your insurance policy for diminished value coverage limits and deadlines.
- Consider consulting an attorney if the insurer undervalues your claim or denies coverage.