What's Diminished Value? Watch this quick video for a 47-second explanation
Connecticut Diminished Value Insurance Claim
Connecticut’s diminished value law establishes the lost market value when your car or auto is damaged by accidents. The loss of property value is called diminished value and often you are owed from an insurance company. Even though a car has been completely and properly repaired, it has lost value for a number of reasons.
First, it has lost value because of the risk associated with the repair of a damaged car. A repaired car generally does not have the same value as a car that was not in an accident. Consumers purchasing cars automatically place less value on a previously damaged car. The market simply pays less for a car that has been in an accident, and it will pay less for yours.
Second, repair shops are not often able to duplicate many of the processes available only to car manufacturers, such as emersion rust proofing, baked on finishing, etc. The point is that you need to be compensated for the value of the car that was taken from you. You will not be able to trade in or resell your car in involved in a collision.
Carfax is an online database of used vehicles and provides potential car buyers vehicle history and VIN number checks. Accidents involving your vehicle will need to be disclosed if asked and will likely show up in the Carfax database.
For these reasons, you may not be able to sell your car for as much as you could have were it not in an accident, even though it has been repaired. The value of your car has diminished after an accident. Despite being repaired, we can recover that diminished or lost value through a loss of value claim. Sometimes the loss of value claim results in only a few hundred, but most often it is a few thousand to tens of thousands of dollars.
Don’t let the insurance companies tell you otherwise; sometimes they will say they will not pay a loss of value (diminished value) claim or ask you whether you were planning to sell your car. Neither matter. Connecticut law provides for the recovery of diminished value when someone illegally hits your car because you have experienced a loss in property value through no fault of your own.
Call, email, or fax to ask a question about Connecticut diminished value law or how to get the lost value of your car after it has been hit in an accident. An attorney will contact you quickly to discuss your claim. Often, as many have found, these insurance claims can be difficult to file if this is your first time. A lawyer from Forrest Law can help you with paperwork and make sure you get fair compensation.