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How Do You File a Diminished Value Claim? The accident was not your fault. Your vehicles fair market value before the accident (Kelley Blue Book or NADA valuation). Your vehicles fair market value after being repaired from the accident, which requires hiring a certified appraiser.
Diminished value and depreciation are different. Depreciation is the normal decrease in a cars value due to wear and tear over time. But diminished value is the actual or perceived reduced market value of a vehicle after being in an accident and getting damaged.
Example of a diminished value calculation Step One: Check your cars value. $20,000. Step Two: Calculate the base loss of value. $20,000 x 10% = $2,000. Step Three: Apply a damage multiplier. $2,000 x 0.75 = $1,500. Step Four: Apply a mileage multiplier. $1,500 x 0.40 = $600.
To determine the current value of a car for insurance purposes, most insurers will: Consult the Kelley Blue Book and/or the National Association of Automobile Dealers Guides, or NADA Guides. These allow the user to enter a vehicles make, model and mileage to obtain an estimated sales value.
Body damage can affect a cars value differently depending on the extent of the damage. If your car body is only slightly damaged, it can take 10 to 15 percent off of the book value. If the damage is more extreme, it can take 75 to 85 percent off of the value.
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As a general rule, you should expect to recover 10% to 25% of the fair market value of your vehicle. That means if your vehicle has a fair market value of $30,000, your diminished value after an accident could be as high as $7,500.
How to File a Diminished Value Claim Determine who was at fault. Insurance companies determine who caused the accident based on state laws and the details of the accident. Check state laws. Check the insurers rules. Gather your documents. Find your cars diminished value. File the claim. Wait for a response.
When you see the CarFax or CarCheck research report you will know if your vehicle was in an accident and you will have to disclose the accident and repairs made when you sell your car. The loss of value is in many cases between 40 to 60 percent, money you will not get when you sell or trade it in.
A diminished value claim allows you to recoup the difference between your cars worth before and after a car accident. For example, lets say youre in a car accident that another driver caused. You would file a liability claim against that drivers car insurance to cover repairs to your car.
As a general rule, you should expect to recover 10% to 25% of the fair market value of your vehicle. That means if your vehicle has a fair market value of $30,000, your diminished value after an accident could be as high as $7,500.

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