One of the most overlooked aspects of car insurance after getting into a car accident is making a diminished value claim. Some drivers are unaware of what it is, while others are unsure of how much money they should receive for such a claim. To help you understand this facet of car insurance, the Quad Cities car accident attorneys at Winstein, Kavensky & Cunningham will explain what diminished value claims are, as well as how they work in Illinois and Iowa.
Your Car’s Value Goes Down After an Accident
Most people are well aware that the value of their car starts depreciating the second they drive away from the dealership. What some people don’t know is that their car’s value goes down after getting into a car accident, too. Even if the car has been meticulously repaired and is in “good as new” condition, the fact that it has been in an accident lowers its value.
Diminished value claims are meant to compensate you for the difference between your car’s value before the accident and your car’s value after the accident.
How Is Diminished Value Calculated?
There are many factors that go into calculating diminished value. They include your vehicle’s make, model, mileage, and more. Insurance companies generally use “formula 17c,” which takes 10% of the book value of your car and applies modifiers based on mileage and damage.
As an example, let’s say that your car has a book value of $50,000. 10% of that would be $5,000. The insurance company uses a mileage modifier of 0.5, lowering the number to $2,500. Next, they use a damage modifier of 0.4, leaving you with a diminished value of $1,000.
While that seems like a straightforward formula, you can be sure that most insurance companies will do everything possible to pay you as little as possible. This is where a Quad Cities car accident lawyer from Winstein, Kavensky & Cunningham can help you. In addition to helping you receive the money you deserve for your personal injuries, our attorneys can help make sure that you’re fairly compensated for your diminished value claim.
Making a Diminished Value Claim in Illinois
Illinois is a diminished value state with a statute of limitations of five years. However, the money is only recoverable if you were not at fault for the accident and the claim must be made through the other driver’s or drivers’ insurance company. If the driver or drivers that caused the accident do not have car insurance then you can make a claim using your policy’s uninsured motorist coverage. You cannot make a diminished value claim in Illinois if your car accident was caused by something other than a collision.
Making a Diminished Value Claim in Iowa
Iowa is also a diminished value state but uses a statute of limitations of two years. Similar to Illinois, you cannot file a claim if you were at fault for the accident or an accident caused by something other than a collision. You can receive compensation for diminished value through the insurance company of the driver or drivers that caused the accident. If the driver or drivers do not have car insurance, then your policy’s uninsured motorist coverage should provide compensation.
Difficulties With Diminished Value
One of the ways that insurance companies try to lower your claim is by understating the pre-accident value of your vehicle. Accurately showing the mileage and age of your vehicle is easy enough, but you may need to provide evidence of the car’s condition. Photos, documents from the car’s last tuneup, and other proof may be required to get the full value of your claim.
Additionally, insurance companies will likely require an inspection of your vehicle before approving your claim. Insurance companies work with many shops that will be friendlier to their cause rather than yours. You may need to pay for an independent inspection if you believe that your insurance company is low-balling your claim.
Get Helped With Your Car Accident Claim
There are so many things to worry about after a car accident. Getting fair compensation for your diminished value claim is probably not high on your priority list. However, you owe it to yourself to make sure that you get all the money that you’re entitled to for your injuries and for the damage to your vehicle. Winstein, Kavensky & Cunningham can take care of all your legal needs by making sure you receive the highest settlement possible for your injuries and fair value for your diminished value claim.
The car accident attorneys at Winstein, Kavensky & Cunningham have more than 50 years of experience serving clients in the Quad Cities. Reach out to us today for a free consultation. Our team is available to help you 24 hours a day, 7 days a week by phone at (309) 794-1515 or online through LiveChat. Contact us today and find out why we’re one of the most trusted personal injury law firms in the Quad Cities area.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.