Wednesday, June 23

4 Things To Consider Before Filing Car Diminished Value Claims

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Insurance companies are known to find ways to avoid paying out on claims as much as possible. They would do all they can legally to find loopholes that would get them out of paying indemnification to clients where possible. Thus, before filing car diminished value claims, ensure you satisfy all the requirements your insurance companies provide.

Factors That Determine A Successful Diminished Value Claim

Filing a successful car diminished value claim is tricky, but it can be done. For better chances though, you should consider the following factors:

Your State of Residence

Insurance policies are known to differ from one state to another, or in some cases, the requirements for validating indemnifications. So, if the state you are living in doesn’t give credence to your diminished value claims, then you might have to face higher difficulty validating them.

The At-Fault Party in the Accident

Your chances of filing a successful diminished value claim can also be dependent on who was at fault in the accident that led to the diminished value in your car. if you are the at-fault party, then there is a chance that the insurance company will not pay out on your claim.

If the At-Fault Party Has Insurance

If the accident was a fault of any other party asides from you, then filing a successful diminished value claim might be dependent on if the at-fault party is insured. In the event that he is, you might have to file your claims with his insurance company.

The Type of Insurance Coverage You Carry

In some cases, an insured party can successfully file diminished value claims depending on the type of coverage he has and the options he opted for. So, before filling out an insurance form, ensure you have all the information regarding the type of insurance you are taking out.

What to Do if Your Car Diminished Value Claim is Unsuccessful

If you are sure that you meet all the requirements to have your diminished value claims validated, but the insurance company still refuses to do so, there are options open to you.

  • You could hire a lawyer that is experienced in dealing with insurance companies to challenge your denial.
  • Or you could have a professional appraiser validate your claim of your cars’ diminished value. Ensure that the appraiser you contract is certified and recognized by the necessary bodies as this would lend credence to your claims in the court of law.

For best results, the two options can be used simultaneously. People rarely do this though as the money expended on pursuing the case might be more than what the insurance company would payout in the end.

Most people consider their cars an investment, and thus should be treated as such. So, if you are ever involved in an accident, it is best you quickly file diminished value claims so your insurance company or that of the at-fault party, or both, can compensate you for any loss in value that your car would have borne.

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