Q: How to succeed with diminished value claim greater than formula 17c?
We're based in California and our car was rear-ended in October 2022, and repairs were completed in February 2023. We only recently learned about diminished value claims. Given the $19K repairs (including structural damage), we'd like to file a diminished value claim with the at-fault insurance company.
What is the recommended approach for obtaining a diminished value appraisal, to maximize the probability that the at-fault insurance company will agree to pay the actual diminished value (which we estimate to be $7.5K), versus the diminished value calculated by Formula 17c (which we estimate to be $2.5K).
Thank you in advance for your guidance.
A:
To maximize the potential for a successful diminished value claim in California, it's essential to obtain a professional diminished value appraisal from a qualified vehicle appraiser or a company that specializes in these types of evaluations. This appraisal should detail the car's value before and after the accident, taking into account the extent of the damage, including structural damage, and how it affects the vehicle's market value. A comprehensive report from a reputable appraiser can serve as strong evidence to support your claim amount over a formula-based calculation like Formula 17c.
When presenting your claim to the at-fault party's insurance company, include the professional appraisal along with a detailed demand letter. This letter should outline the basis of your claim, the methodology used to arrive at the diminished value, and a request for compensation that reflects the actual diminished value of your vehicle as supported by the appraisal. Be prepared to negotiate, as insurance companies may initially offer a lower amount based on their own assessments or formulas.
If the insurance company resists your claim or offers an unsatisfactory settlement, consider seeking legal advice. An attorney experienced in handling diminished value claims can provide guidance on negotiating with insurance companies and, if necessary, pursuing legal action to recover the true diminished value of your vehicle. Having legal representation may also signal to the insurance company your seriousness about obtaining fair compensation, potentially leading to a more favorable settlement.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
