When an automobile accident totals a vehicle, the insurance carrier will typically pay property damage compensation based off of the value of the vehicle right before the crash occurred. If the vehicle is not totaled and it is reasonable to make repairs, then the insurance carrier should pay for the repairs. What many people do not think of is a diminished value claim. If a vehicle is able to be repaired, the owner should receive additional compensation to account for the fact that the vehicle is no longer worth what it was immediately before the accident. Here, we want to discuss Colorado diminished value claims.
The diminished value of a vehicle is the new value that your car has as a result of an accident. This does not include the cost of repairs, as many people think. The diminished value accounts for the fact that you cannot change the fact that the vehicle now has an accident history, and anytime you try to trade or sell the vehicle, this will be a known fact that affects the value.
Calculating the diminished value of a vehicle in Colorado can be done by following these steps:
There are various ways to obtain the pre-crash value of the vehicle. There are many online services that offer these types of appraisals, and we strongly encourage you to obtain various estimates and average them together. Consumer Reports and Kelley Blue Book are two of the more popular car value estimators.
An insurance company will use various methods to determine the diminished value of a vehicle after a crash. They may look to some of the third-party sources we just mentioned. Additionally, the insurance carrier may look at other similar vehicles recently sold in your particular geographic area. They may examine the price that you paid for the vehicle along with any major repairs that have been made, anywhere and tear and any other accidents that have occurred.
Colorado law allows individuals to collect compensation for the diminished value of their vehicle. The diminished value should be added to any insurance claim against the other party and their insurance carrier. This should be included in the compensation paid for the cost of repairs for the vehicle.
If you want to recover the compensation you need after an accident occurs, we encourage you to reach out to a skilled Denver car accident attorney as soon as possible. When you work with a lawyer for these claims, you will have an advocate that helps you recover compensation for any injuries you sustained, your property damage value, as well as the diminished value of your vehicle.
A Denver injury attorney can conduct a complete investigation into the incident, handle all negotiations with the insurance carriers and other parties, and work to recover the compensation you need.