Understanding Diminished Value Claims After a Car Accident in Arizona

Even minor car accidents can come with hefty price tags. Between insurance claims, repair costs, rental fees and other miscellaneous expenses, the aftermath of a collision can have long-lasting financial ramifications for all parties involved in the crash. Some vehicle owners assume that all will be set right once insurance steps in to cover repairs, but even high-quality vehicle repairs are often not sufficient to make up for the diminished value of a vehicle that has been involved in an accident.

Thankfully, all hope is not lost when it comes to recovering the loss of value that tends to accompany a crash. This type of loss is called diminished value, and in Arizona, you may be able to file a claim to seek compensation for it. Let’s explore what options are available to accident victims looking to recover the diminished value of their vehicle and some of the ways a car accident attorney can help maximize the outcomes of their diminished value claims.

What is a diminished value claim?

Most people understand that a used or damaged vehicle is worth less than a shiny, new one. Some car owners are surprised to learn, however, that any vehicle involved in an accident automatically loses value, regardless of whether or not it is professionally repaired. This means that a car accident doesn’t just carry the costs associated with actual repairs but will also reduce the vehicle owner’s resale value in the long run.

In Arizona, accident victims looking to recover the difference between their pre and post-accident resale values can file what is known as a diminished value claim. A diminished value claim is essentially a request to an insurance company for reimbursement of the lost value of a vehicle. These claims are critical because documented collisions – even those for which a driver was not at fault – stay on a vehicle’s record and heavily influence the amount of money buyers might be willing to pay for the car in the future. Since vehicle owners stand to lose money on resale down the line, diminished value claims can help to immediately offset their future financial loss.

Are there different kinds of diminished value?

It is important for car owners to familiarize themselves with the three different kinds of diminished value insurance carriers take into account when assessing diminished value claims.

The three primary types of diminished value are:

• Immediate diminished value: This is the difference in resale value immediately after the accident and before any repairs are performed. Put another way, this is the value difference between a damaged and undamaged vehicle.
• Inherent diminished value: This is the most common type of diminished value represented on insurance claims, as it refers to the loss of value that attaches to a vehicle as the direct result of its accident history – regardless of how well it is repaired.
• Repair-related diminished value: These claims are intended to cover the loss in value that might occur in the event that substandard repairs are performed on a vehicle following an accident.

While most diminished value claims submitted to insurance are related to the inherent diminished value of a vehicle that’s been involved in a collision, working with an experienced car accident attorney can help you ascertain whether an inherent diminished value claim is most appropriate in your individual case.

How do diminished value claims work in Arizona?

Under most insurance policies, the amount of diminished value attributed to an accident can automatically be factored into the total amount of damages being sought by an accident victim. These claims are submitted to the at-fault driver’s insurance company as part of an overarching accident claim and reviewed alongside all other accident-related costs.

In Arizona, accident victims typically submit their claims to the at-fault party’s insurance carrier rather than to their own provider, though some insurance companies may approach this process differently. That’s why it’s always best to consult your insurance agent and/or legal representation in order to determine the most appropriate course of action in your case. Things may get more complicated in cases involving uninsured drivers or hit-and-run collisions, which is why it helps to have experienced and knowledgeable professionals on your side to help you navigate the insurance and legal systems.

How can I prove that my car has lost resale value after an accident?

Insurance companies don’t always make it easy to collect on car accident claims, including diminished value claims. Subsequently, accident victims must be prepared to present strong evidence justifying the amount of value their vehicle has lost. Some of the evidence typically necessary in these claims may include:

• Documentation of a vehicle’s pre-accident market value
• A professional diminished value appraisal of the vehicle’s resale value after repairs
• Documentation of the quality of repairs performed as well as the quality of any replacement parts used in the repair process
• Market comparisons (aka “comps”) of other similar vehicles, both with and without accident histories

Many claimants choose to use online resources like Kelley Blue Book or NADA guides as a starting point for assessing the potential pre- and post-accident values of their cars, but it is highly recommended that accident victims consult with professionals when attempting to appraise their vehicles in order to maximize the value of their claim.

What to expect from insurance carriers

Insurance companies are known for minimizing the impact of a car’s accident history in an effort to avoid paying car owners the full amount of their diminished value claim.

Some of the common tactics insurance companies may employ to avoid paying the full value of a claim include:

• Arguing that diminished value doesn’t or shouldn’t apply after quality repairs
• Using automated valuation tools that underestimate actual loss or using poor market comparisons
• Suggesting the car already had wear and tear that reduced its value or attempting to claim that residual wear and tear is the result of subpar repairs
• Delaying or lowballing settlement offers in an effort to force claimants to accept less than they deserve
• Suggesting that a claimant was actually at-fault or partially at-fault for the collision

A knowledgeable car accident lawyer can challenge these tactics, present stronger evidence and keep comprehensive case documentation in order to negotiate more effectively on behalf of their clients.

Legal considerations for Arizona diminished value claims

There are a few legal considerations to keep in mind when navigating a diminished value claim in Arizona. First, accident victims should know that the statute of limitations in Arizona applies to diminished value claims. This means accident victims must act quickly to gather the information necessary to support their claims and should prioritize securing effective legal counsel as soon as possible.

Additionally, car accident victims must keep in mind that Arizona follows a form of comparative negligence when evaluating damages in personal injury cases. This means that each party’s level of fault for an accident will be assessed following a collision, and each driver’s level of fault will be taken into account when deciding on damages.

While being deemed partially at fault for a collision does not bar an Arizona driver from filing a claim for damages, their final settlement amount will be reduced proportionately to their level of fault. This means that if a driver is found to have been 25% at fault for an accident, the amount of damages they are awarded will be reduced by 25% as well. An experienced car accident attorney can help accident victims fight back against erroneous claims of contributory negligence and work to maximize the value of their client’s final settlement.

Need help with an Arizona diminished value claim?

At Plattner Verderame, we pride ourselves on delivering top-tier support to Arizona accident victims from all walks of life. With nearly 30 years of experience fighting for the rights of our clients, we have the first-hand knowledge necessary to help secure more favorable outcomes for Arizonans seeking compensation in car accident cases.

If you have recently been involved in a car accident and need help deciding whether you may have sufficient grounds to file a diminished value claim, give us a call today or fill out our online contact form. We can get you set up with a free case evaluation and give you the low-down on what you can expect when working with us to fight for the compensation you deserve.