Understanding Diminished Value Claims

Do you consider vehicle history reports as you shop for vehicles? Does your interest in a vehicle lessen if you notice an accident on its history report? That perceived decrease in value is an example of the concept of diminished value, and it has a big impact on drivers around Lee’s Summit and Kansas City.

Diminished value is the difference in the fair market value of a vehicle immediately before an accident and immediately after that accident.

A diminished value claim may help you recover some of that difference, and the McCarthy Collision Centers team wants you to better understand the causes and impacts of diminished value claims, and to help you prepare to file one in the event of an accident.

None of the content in this blog is legal advice, and you may wish to consult a lawyer before moving forward with a diminished value claim.

Causes and Impacts of Diminished Auto Value

Accidents are by far the most common cause of diminished automotive value for Kansas City area drivers.

Imagine two identical vehicles – same model year, trim level, optional equipment, color, and mileage.

One of them has a clean vehicle history report (CarFax or Autocheck) with impeccable service records and no damage reported. The other vehicle has an identical vehicle history report except it shows something ominous sounding like: “Front end impact. No airbag deployment.”

(Catches your eye, right? And NOT in a good way. It would make me wonder exactly what was involved in that front end accident.)

Many buyers will hesitate as they consider that second vehicle with the damage report, and their demand for that vehicle may decrease – they may even walk away from the vehicle.

The seller, whether an individual or a dealership, may have to decrease the asking price of the vehicle to keep the customer interested.

A vehicle with damage, even after being professionally repaired and restored to “Like New” status, is basically always worth less than an identical vehicle with no history of damage.

The diminished value claim is a way to be reimbursed for some of that difference in value.

Who Can File a Diminished Value Auto Claim to Insurance After a Wreck

There are limits on the situations in which you’re likely to successfully receive a diminished value claim after an accident.

• Was the other party at fault? You’re unlikely to receive a diminished value claim if you caused the accident.
• Is the car titled as salvage or rebuilt? You may not be able to file a claim.
• Do you own the vehicle? You may not be able to file a claim if you’re leasing your vehicle.
• In which state do you live / in which state did the accident occur? Not every state allows diminished value claims with the same terms.
• What are you driving? If your vehicle is higher value, you are more likely to secure a diminished value claim than if you’re driving an older vehicle with a collisions and repairs.

Missouri allows diminished value claims, so if you’re around Lee’s Summit you should be good to go. Build your case as we suggest below and see if you can get that bag! (Consult a lawyer!)

How Do I File a Car Diminished Value Claim?

Your diminished value claim will be submitted to the at fault party’s insurance company and there are three stages of this process.

• Secure the services of a qualified independent appraiser to determine the after-accident value of your vehicle. You will also want to provide as much paperwork about the incident as possible: police reports, pictures, and anything else you have on hand. You want to be overprepared as the filing process can vary among insurance providers
• Work quickly and submit your claim as soon as possible after repairs are completed
• Negotiate the insurance company’s offer or collect your settlement

Diminished Value Claim Resources Near Lee’s Summit

The Missouri Department of Insurance is a great resource in the pursuit of a diminished value claim. Their Department of Insurance Financial Institutions and Professional Registration (DIFP) published an auto claim brochure called “Understanding your auto claim” that will provide fantastic guidance.

There are of course multiple sources of legal guidance around the Kansas City area when it comes to your diminished value claim. Remember this blog does not constitute legal advice and you may wish to consult with a lawyer during this process.

Finding Auto Repair in Kansas City

Our team members unfortunately aren’t card holding members of the bar association in any state and can’t help you file your diminished value claim, but McCarthy Collision Center’s talented technicians are incredibly accomplished at fixing collision damage. We’re here to get your vehicle back on the roads around Lee’s Summit with timely, professional, and complete repair of the damage to your vehicle.

We have 4 convenient body repair shop locations in Lee’s Summit, MO, Overland Park, KS, Blue Springs, MO, and Olathe, KS which makes us the automotive collision repair choice near you.

We also partner with multiple trustworthy towing companies in the Kansas City area to offer “Round the Clock” towing services.

As the McCarthy Collision Center team always says: “When you’re in an accident… Call 911 & then 800-NEW-AGAIN”!

We look forward to being your automotive collision repair partner in the Kansas City area!