Understanding Diminished Value Claims in Texas

Diminished value claims demand fair compensation for the reduction of your vehicle’s value after an accident. Texas law gives you the right to seek compensation for all of your accident-related losses, including the diminished value of your property. An experienced San Antonio motor vehicle accident attorney from The Aguirre Law Firm, PLLC can discuss the process of making a diminished value claim.

What Is Diminished Value?

While people often have a sentimental attachment to their vehicles, these items are ultimately goods that are worth a certain amount. After an accident, their value decreases. If the vehicle owner ever goes to sell their vehicle, the prospective buyer will likely take the accident history into consideration when making an offer.

A diminished value claim is a type of insurance claim that seeks the difference between the pre-accident value of the vehicle and its post-accident value. Because the vehicle will be worth less even after it is repaired, the claimant seeks these additional funds to offset their future economic losses.

Factors That Affect the Value of the Vehicle

Various factors can affect the value of your vehicle, and therefore, the value of your diminished value claim, including the following:

• The vehicle’s age: Generally, newer vehicles are worth more than older ones, so they may have a higher diminished value.
• The vehicle’s pre-accident condition: Vehicles that were in good condition before the accident will have a higher diminished value than those in poor condition or with a history of other accidents.
• The severity of the accident: Minor fender benders might not affect a vehicle’s value as much as major collisions.
• Quality of the repairs: If repairs are done poorly, this can further increase the value of the diminished value claim.

It can be challenging to quantify the value of a diminished value claim, as the value may vary depending on the specific circumstances. It’s essential to work with an experienced injury lawyer in San Antonio who is familiar with these types of claims and how to maximize them.

Eligibility to File a Diminished Value Claim After a Car Accident

To be eligible to file a diminished value claim, you must generally be able to meet all of the following criteria:

• You own the vehicle or are financing it.
• You were not at fault for the accident.
• The vehicle has no history of previous accidents.
• The vehicle sustained a loss in its value due to the accident.
• You must be able to show the lost value.

How to Calculate Texas Diminished Value Claims

Unfortunately, there’s no set rule for calculating diminished value in Texas. However, some common approaches include:

• The 17c formula: This formula considers various factors to determine diminished value, including the vehicle’s age, mileage, pre-accident condition, and severity of damage. Insurance companies often employ this method, but the computed values are usually lower than those obtained using other methods.
• Market comparison method: This method compares the prices of similar vehicles in the open market before and after the crash.
• Professional appraiser: An experienced appraiser can review your particular situation and weigh the factors that affect your claim’s value to provide an accurate assessment.

Get Help with Your Diminished Value Claim

If you’d like assistance with your diminished value claim, contact The Aguirre Law Firm, PLLC for a free consultation. We can explain how we can help with this process and guide you through the insurance claim.