Vehicle depreciation, known as "diminution" or "loss of value" in U.S. law, is the difference in value of property value immediately preceding and directly following its damage. In auto liability, the theory of diminution states that the owner of a vehicle should be compensated for the difference in value after an accident. Automobile depreciation takes into account not only the value of the vehicle before any repairs, but the theoretical loss of value the vehicle incurs even after being restored as a result of being in an accident. This is based on the tendency of vehicles with no accident history garnering more money at sale, sometimes to a significant degree, than vehicles that have been in an accident.
Instructions
1. Calculate your automobile's depreciation after an accident. To do this, you will need to determine the value of your vehicle immediately before the accident and the value immediately following. The dealership where you purchased your vehicle can provide you with an accurate estimate of your vehicle's prior value, while the mechanic who repairs your vehicle should be able to give you to post-accident value. Be sure to get documents stating the values from both. Subtract the post-accident value from the pre-accident value, and this will give you the amount of the depreciation.
2. Determine who is liable for the damages. If your vehicle was damaged by another driver's who has admitted fault, the driver's insurance company is liable. If he has no insurance, then the driver himself is liable. Otherwise, your insurance company would be liable for damages--provided you carry comprehensive collision coverage. If none of these applies, you have no claim for automobile depreciation.
3. Contact the insurance company who is liable for the damages and request an agent perform an appraisal for your vehicle. This typically entails the agent visiting your home to view the vehicle in person, although some insurance companies handle appraisals strictly by interviewing the owner. As soon as the appraisal has been completed, request documentation of their results for the depreciation of the vehicle along with how they arrived at that number.
4. Compare the insurance company's depreciation value to the number you previously calculated yourself. If they seem to be consistent, calculate the average of the two values. This will be the depreciation value of your claim. If the numbers differ significantly, recalculate the depreciation value you figured out, and review the insurance company's reasoning for their value. If the insurance company seems to be purposely low-balling the number, you can challenge their figures and ask that they use yours instead.
5. Submit a claim for the average depreciation value you determined--or for your own calculations, if you chose to challenge the insurance company's number-. You can request a claim form directly from the insurance company, or if unable to provide one, draft a letter stating that you are submitting a claim to recover the costs of your automobile depreciation after an accident. Include the total amount you are seeking, and provide copies of your documentation you obtained from the dealership or mechanic to substantiate your claim.
6. Consider hiring an attorney to assist you with filing a claim for automobile depreciation after an accident. Your insurance company may provide you with an attorney if your coverage allows for it; otherwise, you can consult your own attorney. She will be able to handle the claim more efficiently, and can fight the insurance company to get more of the money you deserve for your automobile depreciation claim.
Tags: insurance company, your vehicle, depreciation value, after accident, automobile depreciation, automobile depreciation after, depreciation after
