However perfect for the repair, the accident cannot be removed from the records of the car’s history. As soon as the accident record appears in the report, the resale or trade-in value of your car drops significantly, and the discrepancy between the value prior to the accident and after the repairs is referred to as diminished value. It is an option available to pursue Florida and a legal right, but the insurance companies do not make it easy.
What Diminished Value Actually Means
The diminished value is the difference between the pre-accident value of your car and its value after the repairs, although the repairs are conducted according to the manufacturer’s requirements. The buyers and dealers are simply willing to pay less for a vehicle that had an accident, no matter how effective the repairs are. In Florida, the diminished value lawsuit usually targets the at-fault party insurance company.
Common Reasons Insurers Deny These Claims
So, when insurers receive diminished value claims in Florida, this is what happens: Not accepting/challenging the appraisal. The insurance companies may refuse the independent appraisal or refuse to accept a higher appraisal over a lower appraisal by the company itself.
- Saying that the repair has “restored” the full value. Insurers claim that proper repair eliminates anything to be compensated for.
- Pointing to the age or mileage of the car. Some older cars or high-mileage cars are simply ignored by insurers with respect to diminished value.
- Asking for too many documents. An underdeveloped case provides an insurance company with enough reason not to act.
- Playing for time. Some companies intentionally prolong the process in order to make the claimant abandon the case.
All of these do not make your claim invalid; they simply show how the insurance companies try to protect themselves.
How an Attorney Can Help
With a diminished value attorney, the strategy is brought to a process that is designed to wear down claimants. This is where we at Car Value Law PLLC take on tasks such as obtaining appraisals from certified and independent appraisers, gathering market resale and vehicle information, negotiating every deal straight with the insurance company, and contesting low ball offers and denials with facts and not assumptions. If there is a failure by the insurance company to negotiate in good faith, then we are ready for the next step.
Having a legal expert on your side means that you don’t have to interpret difficult denial letters and miss deadlines.
Frequently Asked Questions
What is the diminished value in Florida?
Diminished value is the decreased market value of your car after the incident has been resolved due to the fact that accidents reduce the market and trade-in value of a car.
Can I claim diminished value against my own insurance company?
In most cases, no. Diminished value claims in Florida are usually made against the insurer of the third party responsible for causing the incident.
Why do insurers deny so many diminished value claims?
Since such claims reduce the amount of money that they will pay out, insurance adjusters will always question the value assessment, point to the age of the vehicle, or ask for more documents to be submitted.
Do I need an attorney to file a diminished value claim?
Yes, you may go ahead by yourself, but having a lawyer makes a difference.
How long do I have to file a diminished value claim in Florida?
As deadlines depend on individual cases, one must take action immediately. The stronger your evidence, which can be appraisals and market comparisons, the closer it will be done to the moment when the damage was fixed.
What evidence strengthens a diminished value claim?
All the mentioned evidence, including the certified appraisal, repair records, history of the car, and similar vehicles on the market, will support the diminished value claim to make the insurance company accept it.
Don’t Let an Insurer Undervalue Your Vehicle
Insurance companies always rely on lack of knowledge about the rights of policyholders. Don’t take a refusal for the last word and turn to the professionals at Car Value Law PLLC. Our diminished value attorneys will do everything possible to get you the entire diminished value in Florida.
