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California Diminished Value Claims
California is a diminished value state, which means you may be entitled to the diminished value of your vehicle after an auto accident. The statute of limitation on diminished value claims in California is 3 years, and California does have uninsured motorist coverage for diminished value. You can’t submit a California diminished value claim if you were the at-fault party in an accident, or if the damage was caused by something other than a collision. You can see if you qualify for a diminished value claim by filling in the claim review form above.
Diminished value of an automobile following an accident may occur in one of three ways:
Repair-related California Diminished Value – is the loss of value due to the inability to perfectly repair the vehicle. Meaning that the car is now worth less after repairs than it was before the wreck.
Immediate California Diminished Value – The difference in resale value of a vehicle before damage occurred, and the resale value after damage has occurred before being repaired. The immediate Diminished value also is the loss of value caused by the insurer’s direct involvement in the claim adjustment. Meaning that the insurer gains control over the repairs resulting in repairs incomplete, insufficient, and leaving the car less than standard optimal condition.
Inherent California Diminished Value -This is the most widely recognized and accepted form of Diminished Value. This will ensure that the best repair quality has been achieved and is defined as the amount by which the resale value of a repaired vehicle has been reduced due to accident. It is also the basis upon which any supplemental form of Diminished Value would be added.
It’s just common sense.
Let’s assume you were shopping for a late model used vehicle. You come upon a dealer who has 2 identical vehicles that match what you are looking for. These vehicles are the same year, make and model. They have the same mileage and options. They appear to be in the same general condition. The sticker price for both vehicles is $20,000. You ask the dealer if either vehicle has ever been wrecked and he tells you that one of the vehicles had sustained $6,500.00 in collision damage, but the repairs were expertly completed and you cannot tell there was ever any damage. Now there are just 2 questions that remain.
Would you still give equal consideration to each vehicle?
(If you answered no to #1) How much of a discount in the price would have to be offered in order for you to give the wrecked and repaired vehicle equal consideration?
The bottom line is:
If you were not at fault in the accident, the at-fault party (or their insurance company) owes you money. This is true in all 50 states. There is over 75 years of case law to back that up.
How much value has your vehicle lost?
Don’t let the insurance company tell you. Ask The Experts at Collision Claim Associates, Inc. We are professional vehicle appraisers who will provide you with the documentation you need to get the compensation you’re entitled to. Determining the diminished value often requires a professional appraisal value claim to accurately assess the impact of the accident on your vehicle’s worth.
California Diminished Value Claim Info
California Statute Of Limitations: 3 Years
Uninsured Motorist Coverage: YES
Diminished Value For At Fault Party: NO
FAQs
How is the amount of diminished value calculated?
Insurance companies often use a generic formula that results in a low offer. A professional appraiser, like the experts at CollisionClaims.com, calculates the true loss by performing a detailed market analysis. We compare your vehicle to similar ones for sale, factor in the severity of the damage, and use our industry expertise to determine an accurate and defensible figure.
How long do I have to file a diminished value claim in California?
The statute of limitations for property damage in California is 3 years from the date of the accident. It is best to start the claims process soon after repairs are completed to ensure all evidence is readily available.
Can I claim diminished value from my own insurance company in California?
No. In California, you generally cannot file a “first-party” diminished value claim against your own insurance policy under your collision coverage. This was established by the landmark case Ortega v. Meritplan Ins. Co. The claim must be made against the at-fault driver’s insurance.
What about an uninsured driver?
Similarly, Uninsured Motorist Property Damage (UMPD) coverage in California typically does not cover diminished value. It is meant to cover the cost of repairs up to a certain limit.
Will filing a diminished value claim raise my own insurance rates?
No. You are making a third-party claim against the insurance company of the driver who was at fault for the accident. Since it is not a claim against your own policy for which you were at fault, it should not impact your rates.
Why Choose the Experts?
With over 21 years of service, the diminished value experts at CollisionClaims.com have the experience needed to maximize your recovery. We created this free, no-obligation claim review to help California drivers like you understand their rights and start the process of getting compensated fairly.
