Diminished Value Claims in Mississippi: Getting Paid for the Hidden Loss After Your Car Is Repaired

These days, it is common practice to run an accident report on a vehicle before you buy it. Sites like CARFAX make it easy to get a vehicle’s history online, and most people (and dealerships) will do this before purchasing a car. Having an accident on your vehicle’s record can significantly diminish its value, which could come as a surprise when you decide to sell it.

You can seek compensation for this hidden loss as part of your car accident claim. However, proving diminished value can be tricky, and it is usually not something the insurance company will volunteer to pay. Since 1982, Merkel & Cocke, P.A. has fought for auto accident victims. We have experience with diminished value claims in Mississippi and know how to get the most out of your settlement.

What is a diminished value claim?

Diminished value is the difference in the value of your car pre- and post-accident, after repairs. There are two types of diminished value claims you could make for a vehicle you have had fixed:

• Inherent – This is the most common type of diminished value claim. It asks for compensation for the loss in value that an accident may cause, even if you have fixed all of the damage. It is based on the difference in your car’s overall value before and after the crash.
• Repair-related – You might also make this type of claim if your repairs did not restore your car to the way that it was before the accident. For example, maybe your mechanic had to use aftermarket parts, or your car’s body panels never quite align right again. You can get money from the insurance company for the additional drop in value these issues cause.

Who can file a diminished value claim?

You can file a diminished value claim in Mississippi if another party was at least partly at fault for your accident. You also need to show that your vehicle lost market value despite reasonable repairs.

In most cases, your claim will be against a liable driver’s auto insurance policy. In claims involving hit-and-run accidents or underinsured/uninsured motorists (UM/UIM), your own insurance policy may pay if you have coverage that applies. But remember, insurers rarely just offer this compensation up. You will have to ask for it and show that you deserve it, no matter whose insurance company you are dealing with.

How can you prove diminished value after you have made repairs?

To get money for your car’s diminished value, you will have to prove that your vehicle is worth less than before the collision and establish the amount of that loss with reasonable certainty.

First, you will need to get a fair market estimate for your vehicle before it was damaged. You can use a source like Kelley Blue Book, but you will need to know details about your car on the day of the crash, like mileage. You might be able to get some of this from your vehicle maintenance records or your car’s internal recorder. It would help if you had photos that document the car’s interior and exterior condition, as well.

Second, you need to prove that your vehicle sustained damage and that it happened in the collision. You can do this using police reports, eyewitness statements, and vehicle repair records.

Finally, you will need to show what your car is worth now, after repairs. Again, you could use market estimates. You could also use data from sites like CARFAX. It can really help to get an independent diminished value appraisal.

How much money will you get for your car’s diminished value?

Insurance companies often use a complicated formula to evaluate diminished value claims. Usually, claims involving severe damage that required extensive repairs are worth more. Every claim is different, but diminished value can be worth several thousand dollars. But if you do not ask the insurance company for it, you probably will not get it. Insurers almost never offer this compensation without prompting.

Often, diminished value is part of a broader car accident claim that seeks compensation for other losses, including medical expenses, lost wages, and pain and suffering.

Should you hire a car accident lawyer?

You should think about hiring a car accident lawyer if the at-fault driver’s insurance company is refusing to pay a valid diminished value claim. You might also want to hire an attorney if there is a dispute over any other part of your settlement. Even if there are no disputes, you may want a lawyer if you have an injury, as this can increase the value of your claim and make the insurance company more likely to fight it.

A personal injury lawyer can help you build a case proving that another driver was liable. An attorney can collect evidence, speak with witnesses, and hire experts to support your claim. An attorney can also help you prove how much you should get for your diminished value claim and other losses. This involves getting medical documentation to prove the extent of your injuries and the cost of your current and expected medical bills, as well as bills, receipts, pay stubs, estimates, and other evidence of your lost wages and other damages.

Do not wait too long to get legal counsel or start on your case. Insurance policies have deadlines for filing claims. If you miss them, it will not make your diminished value claim (or any other type of damage claim) any easier.

If you have to file a lawsuit, legal deadlines called statutes of limitations apply. For most personal injury and property damage cases in Mississippi, you have three years.

Get help with diminished value claims from a Mississippi car accident lawyer

At Merkel & Cocke, P.A., we pursue every cent owed to you after an accident, including your car’s diminished value. Our attorneys are qualified negotiators, and we aggressively seek the maximum compensation possible. To us, standing up for the people in our communities is more than a job – it is our responsibility, and we take it seriously. We work with you to provide personal and professional legal help, focused on getting results.

Learn more during a free consultation. Contact us today. We work on contingency, so you pay nothing up front.