Diminished Value Attorney in Las Vegas: How to Make a Diminution in Value Claim
What is diminished value?
To illustrate what diminished value is, imagine that you’re shopping for a car. It’s a big decision. It’s important to find a vehicle that is the right fit for you and your budget. It also needs to be reliable.
You’ve narrowed your search to a specific year make and model. You’ve found two cars that are exactly the same, except one may have a darker past than the other. It clearly states on the vehicle history report that one of the cars has been in an accident.
This makes your decision on which car to buy easy. There is no way that you will take on the unknowns that come with buying a car that has been in an accident. Many car buyers do the same thing and opt for the car that doesn’t have an accident on its vehicle history report. Doing your due diligence and researching the car’s past will help you make an informed decision and prevent a potentially costly mistake. But when you’re in an accident, your once clean vehicle now has a blemish on its record that will cost you.
Diminished value, also referred to as diminution in value, is the difference between the fair market value of a vehicle before and after an accident. Even if repairs have been performed to the highest standard, a vehicle with an accident history will still have a lower value.
In Nevada, courts have recognized diminished value, and the victim of an accident can seek compensation for the difference between the pre-accident and post-repair value. Diminished value can also be claimed in contract law when a breach of contract has caused a loss in property value. In Nevada, the at-fault party is liable to compensate for diminished value.
Has your car decreased in value after a car accident?
After an accident, the value of your car decreases. It’s inevitable. It happens even if you can’t see any evidence of a repair.
Restoring your car to its pre-accident condition will not restore the car’s prior value. Your car is different now. Would you pay the same amount for your vehicle now knowing that it was in an accident? I doubt it.
How does your car lose value after an accident?
As much as we don’t want to admit it, your car’s value decreases after an accident.
VIN reporting services track a lot of data on a car’s history. Accidents are one of the data points collected. If you were to try to trade your car in now, you would get less because the car was in an accident. This reporting rule is a good thing. You should know if the car that you might buy was in an accident.
Yet, you can’t get around having the accident be on your car’s permanent record. Your car’s value has dropped because an accident is now part of its history. Insurance companies don’t want you to know about diminished value. They don’t want to pay any more than they have to. Their primary concern is and always will be profit.
What can you do to recover this lost value? You need to file a diminished value claim. In Las Vegas, Nevada, you can only do this against the person that caused the accident.
The 3 Types of Diminished Value.
The three types of diminished value refer to the decrease the value of a things after an event. We are talking about cars in this article, but diminished value can apply to property and other possessions. The three types of are immediate diminished value, repair-related diminished value, and inherent diminished value.
1. Immediate diminished value
Immediate diminished value is an unfortunate consequence of car accidents that many people don’t think about until it affects them. Immediately after an accident, your vehicle has reduced in value. Immediate diminished value is the drop in value that occurs prior to repairs. When a vehicle is damaged in an accident, its value can decrease significantly. If a vehicle cannot be repaired, it would most likely be declared a total loss. It is important to take action quickly, as you may lose your right to a diminished value claim if you sell the vehicle or it sustains further damage.
2. Inherent diminished value
Accident victims can make a claim for inherent diminished value, which is the difference between the vehicle’s pre-accident fair market value and its post-repair fair market value. In Nevada, an accident victim can recover for this difference in addition to the cost of repairs. Even after getting repairs done to restore your vehicle, potential buyers might still be wary of it due to the repair history associated to your vehicle. Victims of auto accidents should seek to be made whole by seeking compensation for diminished value damages. Even if you elect to retain your vehicle, you are still entitled to recover inherent diminished value.
3. Repair-related diminished value
If you’re in an unfortunate situation of being in a car accident, repair-related diminished value is something you should keep in mind. This means that the resell value of your vehicle could be damaged due to the repair work done. It is important to ensure that the quality of the repair work is of a high standard and that the parts used are of a high standard. This way, you know that you are maximizing the value of your vehicle and getting fully compensated for the repairs.
What are the factors that affect the value of a car after an accident?
1. Public Perception
Public perception has a large effect on the value of a car after an accident, probably the greatest of any of the listed factors. When potential buyers become aware of an accident on the vehicle’s record, they become more wary of potential problems with the car. This means that even after repairs have been done to the car, it will still not be worth as much as before the accident. This is because buyers have options, and many think the car’s quality, safety, and reliability have been compromised now that the car has been in an accident. As a result, the car’s value is decreased.
2. Extent of Damage to the Car
Factors that can affect a vehicle’s worth after an accident are its age, mileage, and the popularity of its make and model. The quality of the repairs can also have an impact, as using after-market parts instead of original parts can reduce the value of the car. Finally, the information reported in Carfax reports, such as the damage and repair work done on the vehicle, can also affect its value.
The value of a car after an accident is affected by inherent diminished value due to its accident history, repair-related diminished value, immediate diminished value, the age and mileage of the car, the popularity of its make and model, the quality of the repairs, and the information reported in Carfax.
3. Cost of Repairs
The cost of repairing a car after an accident depends on the extent of the damage and the quality of the repair. The cost of repairs can range from a few hundred dollars to several thousand dollars or more. Some appraisers will factor in the cost of repairs in their diminished value calculation. Some appraisers do not.
Personally, I argue that the cost of repairs has not bearing on diminished value because a layperson purchasing your vehicle has no way of knowing the cost or extent of the damage.
4. Previous Repairs to the Car
Repairs to a car after an accident can have an effect on its value. When a car is damaged in an accident, its value could drop due to the fact that it may not run as well as it did before, or it may not look as good. This means that if you try to sell your vehicle, it will be sold for less than it was worth before the crash. This is referred to as ‘diminished value’.
Additionally, services such as CARFAX can alert buyers to a car’s accident history, which could further reduce its value. The age and mileage of a car, as well as the make and model, can also affect how much a vehicle depreciates as a result of an accident. Insurance companies may also “total” a car, meaning they will pay the fair market value of the vehicle if the cost of repairs exceeds the vehicle’s value.
What is a diminished value claim?
Nevada law supports diminished value claims against an at-fault third party.
A diminished value claim seeks recovery for the decrease in value that resulted from the accident.
You have to prove your damages. You can try and estimate the value of your car on your own using vehicle valuation tools. However, a qualified appraiser will provide a better estimate.
If the insurance company is not willing to negotiate, smalls claims court is the next option. The appraisal will help you in court.
Filing a diminished value claim can be a complex process. Insurance companies don’t want to pay for the value you lost and will fight you through the process.
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Diminished Value FAQs
How does an attorney help with a Diminished Value Claim?
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An attorney can help with a diminished value claim by guiding the process. The initial step is to provide proof of loss, which can be done by working with a car accident attorney to prove the vehicle’s value before and after the accident. The attorney can then help you file the claim with the insurance company and possible court proceedings if required. They have the experience to ensure you get the maximum amount for reducing your vehicle’s value.
When negotiating a settlement with the at-fault party’s insurance company, the help of a car accident attorney can be invaluable. They will have experience in dealing with these complex cases and can provide guidance on the amount of compensation you may be entitled to. Once the claim is filed, the attorney can advise on any documents necessary for review, such as an appraisal of diminished value.
Ultimately an attorney can provide the support and representation to ensure you receive the compensation you deserve. They will be able to review the details of your case and help protect your interests. After all, you should not have to suffer a financial loss due to another driver’s carelessness.
What is the process for filing a Diminished Value Claim?
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Step 1: Gather proof of loss. You must prove that the repaired vehicle is worth less than before the accident. This can be done by consulting an appraiser specializing in diminished value.
Step 2: File a diminished value claim with the at-fault party’s insurance company so that you can receive compensation for your car’s lost value. Make sure to submit the appropriate documents, such as a diminished value appraisal and demand letter, for review.
Step 3: Negotiate a settlement with the insurance company. Working with a professional auto appraiser with expertise in these matters is important, as this will give you the best chance of success.
Step 4: Submit your claim. You will need to provide information about the diminished value of your vehicle, such as consulting sources like Kelley Blue Book, Edmunds, and a car dealer for the vehicle’s trade-in value. You may also enlist the help of a car appraiser for an expert opinion.
Step 5: Negotiate with the insurance company. The insurance company may agree to pay you the value of your claim, deny your claim, or try to negotiate a lower amount. If you are not satisfied with their offer, you may be able to take your case to formal legal proceedings.
Step 6: Consult a qualified attorney. If the insurance company does not offer a fair value for your vehicle or tells you that you cannot seek compensation for your vehicle’s diminished value, you may need the help of an attorney. An attorney can review the details of your situation and help protect your interests.
Are there any special considerations for filing a Diminished Value Claim in Las Vegas?
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In Las Vegas, filing a diminished value claim is a complicated process, and it is important to understand Nevada’s unique rules and regulations before pursuing such a claim. Nevada is a diminished value recovery state, meaning that if someone else’s negligence caused your car to be damaged, you may be able to seek compensation for your vehicle’s reduced value. However, these claims are filed separately from your injury claim, and you may be ineligible to file such a claim if the damage was caused by something other than a collision or if you were the at-fault party.
It is also important to note that the insurance company may not offer a fair value for your vehicle and may try to deny your claim. It is in your best interests to speak with a qualified Las Vegas car accident attorney who can evaluate your case and advise you on how much compensation you are entitled to. An attorney can also help you negotiate with the insurance company and protect your interests if the insurance company tries to confuse or mislead you during the claim process.
Finally, it is important to keep in mind that you will not be able to recover compensation for diminished value unless you take the right steps. A car accident attorney from Red Rock Injury Law in Las Vegas can help you document the diminished value of your vehicle and negotiate a reasonable settlement with the responsible insurer. If the insurer refuses to agree to a reasonable settlement, your attorney can pursue a lawsuit on your behalf.
Are there any restrictions on when a Diminished Value Claim can be filed?
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Yes, there are restrictions on when a diminished value claim can be filed. In Nevada, you have three years from when your vehicle was damaged to file suit for losses related to a diminished value claim. After the statute of limitations has passed, it is not possible to file a claim for diminished value.
What are the benefits of hiring a Diminished Value Attorney in Las Vegas?
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Hiring a qualified Las Vegas diminished value attorney can provide you with a number of important benefits, including:
- Knowledge of State and Local Laws: A diminished value attorney can help ensure you get the compensation you deserve by understanding Nevada’s state and local laws and how they apply to your case.
- Negotiation Expertise: An attorney can help you negotiate with the at-fault party’s insurance company to ensure you receive a settlement that fairly compensates you for your vehicle’s diminished value.
- Fair Market Value: A diminished value attorney can help you present evidence of your vehicle’s fair market value before and after the accident, such as Kelly Blue Book information.
- No Upfront Payment: Hiring a diminished value attorney that works on contingency means you will not have to pay anything upfront or throughout the legal process, as they do not get paid unless they secure compensation for you.
- Complimentary Consultation: Most good attorneys will offer a complimentary initial consultation, so you don’t have to decide whether to use their services without knowing all the details of your case.