Virginia motorists are entitled to compensation after an automobile wreck caused by another. This includes all property damage to their cars.
Under most auto insurance policies, insurance agencies broadly promise to pay for direct damages resulting from an auto accident. In cases like this, a motorist in Virginia may be able to file a diminished value claim to compensate them for the full resale value of their car.
What Is Diminished Value Compensation?
Virginia law defines “diminished value compensation” as “the amount of compensation that an insurance company pays to a third-party vehicle owner, in addition to the cost of repairs, for the reduced value of a vehicle due to damages.”
In other words, a diminished value claim allows you to recover the resale value of your car. The resale value must factor in the stigma naturally associated with a car after it’s been in an accident.
Even if you can repair the car, CarFax and other companies will record its history. Imagine being on a car lot choosing between two cars identical in every respect except that one has been in a wreck. Which one would you pick?
Should I File a Diminished Value Claim in Virginia?
A diminished value claim is not for everyone. For starters, the accident that caused the damage must have occurred within the Virginia statute of limitations. A statute of limitations is a law that says how much time you have to sue another person for personal injury or property damage.
With respect to automobile accidents, Virginia law generally provides that motorists have three years from the date of the accident to sue the at-fault driver or their insurance carrier.
Diminished value claims are appropriate when the vehicle is valuable. The damage is usually significant.
For example, a rare 1980 Corvette that suffers frame damage in an accident would carry a significant stigma to potential buyers. In this scenario, the difference between the value of the car before the wreck and the car’s value after repairs would be substantial.
In comparison, the resale value of a 1980 Honda Accord with cosmetic damage would depreciate very little after a wreck. In this situation, it might not be worth the time and money to file a diminished value claim.
Contact a Virginia Diminished Value Claim Lawyer
You may have a claim for diminished value if you are not the driver at fault. Take detailed photographs of your vehicle before and after repairs. In addition, you should hire a reputable appraiser to determine the resale value of the car after repairs.
River Run Law lawyers get clients full compensation for the diminished value of their vehicle. Our firm commits to our clients. We provide the highest possible level of professionalism, responsiveness, quality, and value.
Contact us now to schedule a free consultation and case evaluation.