You may be owed more money beyond repair costs after a car accident

A vehicle’s value often decreases after an accident, even if fully repaired, a concept known as diminished value. Many drivers may be eligible for compensation covering this loss, but must proactively request it from insurance companies.

Diminished value represents the financial difference between a car’s worth before and after a collision. Insurance companies typically do not offer this compensation unless explicitly asked. Billy Walkowiak, an insurance adjuster, stated, “They’re not going to tell you. they’re not going to volunteer the information.”

Roy Estes’s BMW was damaged in a parking lot incident where he states another driver backed into him. Estes recalled, “and I never let off the horn, and she backed into me anyway.” The other driver admitted fault, prompting Estes to file a claim with her insurance company.

Estes initially sought approximately $5,000 for diminished value based on his online research. The insurance company responded with an offer of $250, which Estes rejected. “I said I’m not going to take that,” Estes said. He then provided additional data to support his claim and offered to settle for $2,300. The company countered with $500, to which Estes recounted, “he sends it back... ‘I’ll give you $500.’” Estes refused this offer as well.

Insurance Adjuster Walkowiak explained the factors considered when calculating diminished value. Walkowiak said, “I take the year, the make, the model, the mileage and the severity of the accident and I look at the marketplace and what it’s doing.”

Drivers generally qualify for diminished value if they are not at fault for the accident and own the vehicle, as claims are typically not applicable to leased cars. Claimants should keep copies of repair records and a detailed vehicle history. Laws regarding these claims vary by state. In Pennsylvania, claimants have a two-year window to file a diminished value claim.

After several weeks of negotiations, Estes’s persistence resulted in the insurance company agreeing to pay him $2,380 for his diminished value claim.

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