A diminished value claim allows vehicle owners to recover compensation for the loss in their car’s market value after an accident, even after repairs. If you were not at fault, Texas law may allow you to file a claim against the at-fault driver’s insurance to cover this financial loss.
What Is a Diminished Value Claim?
Even after professional repairs, a car involved in an accident is often worth less than a similar vehicle with a clean history. Buyers and dealerships typically view accident history as a red flag, reducing your car’s resale or trade-in value. This loss in value is called "diminished value," and in Texas, you may be entitled to compensation if the accident was not your fault.
Types of Diminished Value Claims
- Inherent Diminished Value: The most common type, referring to the loss in market value simply because the car now has an accident history, despite being fully repaired.
- Repair-Related Diminished Value: Occurs when subpar repairs, mismatched paint, or non-original parts further decrease the car's value.
- Functional Diminished Value: If the vehicle does not perform the same after repairs due to structural or mechanical issues, its value drops significantly.
Who Can File a Diminished Value Claim in Texas?
Under Texas law, you may qualify for a diminished value claim if:
- The accident was not your fault.
- The at-fault driver had valid insurance coverage.
- Your vehicle has lost measurable value after repairs.
- Your car was not deemed a total loss by the insurance company.
How to File a Diminished Value Claim in Texas
If your car has lost value after an accident, follow these steps to file a diminished value claim:
1. Assess Your Car’s Value Before and After the Accident
Use online valuation tools like Kelley Blue Book (KBB) and NADA Guides, or get an appraisal from a dealership or auto expert to determine your vehicle’s pre- and post-accident value.
2. Gather Evidence
- Vehicle history report (Carfax, AutoCheck) documenting the accident.
- Repair invoices showing parts used and work completed.
- Independent appraisal showing the loss in market value.
- Photos of damage and repairs for proof.
3. Submit Your Claim to the At-Fault Driver’s Insurance
Contact the at-fault driver’s insurance company and submit your diminished value claim with supporting documentation.
4. Negotiate a Fair Settlement
Insurance adjusters may offer a low amount or deny your claim. Be prepared to counter their offer with independent appraisal reports to justify your claim.
5. Contact a Personal Injury Attorney If Needed
If the insurance company refuses to offer fair compensation, an experienced personal injury lawyer can negotiate on your behalf or file a lawsuit if necessary.
How Much Can You Recover in a Diminished Value Claim?
The amount of compensation depends on factors such as:
- Your car’s make, model, and year (luxury and newer cars suffer higher diminished value).
- The severity of damage and quality of repairs.
- The market demand for your vehicle.
Insurance companies often use a flawed formula (17c Formula) to calculate diminished value, which may underestimate your loss. Seeking an independent appraisal can help ensure fair compensation.
Common Mistakes to Avoid
- ❌ Accepting the First Offer: Insurance companies lowball claims to save money.
- ❌ Waiting Too Long: Texas has a two-year statute of limitations for diminished value claims.
- ❌ Not Getting an Independent Appraisal: Without an expert assessment, insurers will undervalue your claim.
- ❌ Not Seeking Legal Help: If negotiations stall, a lawyer can fight for fair compensation.
Why Work with Francis Injury on Your Diminished Value Claim?
At Francis Injury, we understand how frustrating it is to deal with insurance companies that try to pay you less than you deserve. Our legal team has extensive experience in diminished value claims and will fight to ensure you get the compensation you are entitled to.
- ✔️ Evaluate your car’s lost value with expert appraisals.
- ✔️ Handle negotiations with the insurance company.
- ✔️ File a lawsuit if necessary to recover the full compensation.
If your car lost value due to an accident you didn’t cause, don’t settle for less. Contact Francis Injury today for a free consultation.