Been in an accident and got your car repaired? Great! But hold on, there might be more you’re entitled to claim. California law allows you to recover compensation for diminished value, which is the decrease in the market value of your car after an accident, even if it’s perfectly repaired.
Here’s the shocker: Insurance companies often keep quiet about diminished value claims. They might settle your property damage repairs quickly, but they rarely volunteer information about this additional coverage. That’s where an attorney can be your champion.
What is Diminished Value?
Imagine your car is a pristine pearl before the accident. Now, even after repairs, it might be seen as a “used car with a history” by potential buyers. This unfortunate stigma translates to a lower selling price – that’s diminished value.
Why Don’t Insurance Companies Mention It?
Simple: It means more money out of their pocket. By downplaying diminished value, they hope you won’t ask, and they save money.
California Auto Insurance Carriers (in no particular order):
- AAA
- Mercury Insurance Company
- Farmers Insurance
- State Farm
- Progressive
- GEICO
- The Hartford
- USAA
- Travelers
- Allstate
The “17c Formula” Trap:
Some insurance companies use a formula called “17c” to calculate diminished value. It’s a one-size-fits-all approach that often undervalues your car’s true loss.
Why Hire an Attorney for Diminished Value Claims?
Here’s where things get interesting: Attorneys can fight for a fairer diminished value settlement. They can:
- Challenge the 17c Formula: Attorneys can argue for a more precise evaluation that considers factors like your car’s specific make, model, mileage, and repair details.
- Find Better Estimates: Attorneys have connections with independent appraisers who specialize in diminished value. They can provide a more accurate assessment of your car’s lost value.
- Negotiate Aggressively: Insurance companies know attorneys mean business. Your attorney can fight for the maximum compensation you deserve.
Remember: Don’t settle for less than your car’s true value. If you’ve been in an accident in California, consult an attorney to understand your diminished value rights.
Disclaimer: This blog post is for informational purposes only and should not be taken as legal advice. Always consult with an attorney for personalized legal guidance.
