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If your automobile is damaged in an automobile accident and you were not at fault, it may make sense to file a diminished value claim. Arizona is one of the states in the country that allows the owner of a car damaged in an accident to receive compensation for the decreased value in the automobile.
Diminished value can be illustrated this way: Put two identical cars side by side on a car lot. One was in an accident and had been repaired, the other was not. The question is, how much would you have to discount the car that was in accident to sell it?
In the state of Arizona the statute of limitations on diminished value claims is 2 years, just like the Statute of Limitations on your injury claim.
Now, you can only make a claim for diminished value against the at-fault driver’s insurance company. In Arizona, your insurance company, even if it paid for the repairs to your automobile under your collision policy, is NOT liable for the diminished value of your car. Why? Because the Courts say so. That in the only explanation I can think of.
Factors to be considered when making a diminished value claim:
1. Year, Make and Model of your Vehicle:
The newer the vehicle, value it is likely to lose. A 2019 vehicle that was in an accident will lose more value than a 2014 vehicle with the same or similar repairs. That just makes sense.
Also, please note, vehicles older than 6 years are not eligible for diminished value claims.
2. Value of your Vehicle Before the Accident
The value of your vehicle can be established by auto guides, appraisal etc. The selling price before the accident is what establishes the “fair market value” of your vehicle. An expert will be able to establish the value of your car before and after the accident. The difference in the Fair market Value before and after the accident is the measure of your damages.
We know the experts that will do the best job for you.
3. Condition and Mileage Prior to the Accident
Obviously the higher the mileage the less diminished value could be claimed. The accident history of your vehicle will also be a consideration when making a diminished value claim.
4. The Type of Damage to the Vehicle
Structural damage is the largest single factor when one is considering a diminished value claim. Cosmetic repairs like dents and scratches will have little to no effect on the value of your car. Just because your car spent a day or two in the shop does not mean you have lost value in the vehicle.
If you are considering making a diminished value claim consult with an attorney who understand these types of claims. There are many companies out there that offer services in this area. An Experience attorney will know if a diminished value claim is applicable to your situation.
The Law Offices of Daniel J. Marco, PLLC offers free consultations regarding auto accident, personal injury and diminished value claims. We work on a contingency basis which means you do not pay a fee unless we settle your case.
For a free case evaluation, whether for your injury or for a diminished value claim, contact The Law Offices of Daniel J. Marco, PLLC , MarcoInjuryLaw.com PLLC at 480-275-4894. Give us a call even if you just have a question!