What you need to know about diminished value claims in Colorado
After being in a car crash, it’s lucky for you and your passengers to escape with minor injuries. But your car might not be as fortunate. Even if it can be repaired fully, the fact that it was in an accident will significantly lower its value.
It’s not fair for you to absorb this financial loss for an accident that wasn’t your fault. And there is a way to avoid taking that hit by filing a diminished value claim.
Don’t worry about dealing with legal hassles or endless phone calls. A Denver car accident lawyer from Zaner Harden Law will manage your case for you, taking your claim through the process to a successful outcome.
What is a diminished value claim?
The market value of your car drops–usually significantly–after sustaining damage in an accident, even when it is restored to its “original” working condition.
In other words, your car is worth less, no matter how perfectly it looks or runs after repairs, than an identical car that has not been damaged in an accident.
If you ever want to trade in or sell your car, you’ll get less for it than you would if there had not been an accident, and there are plenty of reasons why:
- Buyers often don’t want to buy a car with an accident history
- Car dealerships cannot sell your car in a “certified pre-owned” program
- Original parts are typically better than replacement parts
- Undergoing repairs can weaken a car’s overall structure
- Some damage goes undetected, and buyers and dealers are wary of this risk
This economic loss is frustrating enough if you cause the accident. But if someone else is at fault, the loss is completely unfair. A diminished value claim can help set things right by allowing you to recoup the difference between your car’s pre- and post-accident values.
The compensation you receive from your diminished value claim in Colorado is not to cover repairs–diminished value claims seek compensation specifically for the lowered value of your asset, your car, even after repairs are completed.
Calculating diminished value
To get the full diminished value compensation you deserve, that value must be calculated correctly. To arrive at an amount, the insurance company will:
- Determine the car’s value immediately before the crash
- Determine the car’s value after repairs
- Calculate the difference in these values, which represents the “diminished value”
While this formula may seem straightforward, you should not trust the insurance company to make these determinations on its own. Insurance companies are businesses. Their goal is to protect their own bottom lines, which they do by undervaluing your car and paying out as little diminished value compensation as possible. You need a car accident lawyer in Denver involved in negotiations and protecting your interests.
Colorado allows you two years from the date of the accident to file your diminished value claim against the at-fault party’s insurance, so the sooner you connect with Zaner Harden Law, the better.
Types of diminished value claims in Colorado
There are three categories diminished value claims can fall under. Your attorney will know how to prepare a diminished value claim in Colorado that represents your situation.
Inherent diminished value
Because your car has been in an accident, it is less valuable than an identical car with no accident history even after it has been repaired. This is the most common category of diminished value claims.
Repair-related diminished value
Your car was not repaired properly after the accident and its value is diminished by these incomplete or faulty repairs.
Immediate diminished value
Your car loses value immediately after an accident and before it undergoes repair. Immediate diminished value claims seek to recover this immediate loss in value.
Factoring in a vehicle value protection agreement
In Colorado, a vehicle value protection agreement is defined as “a contract that provides benefits when an owner of a vehicle replaces the vehicle at trade-in, when the vehicle is stolen, or after an adverse event that lowers the value of the vehicle.”
Vehicle value protection agreements are not insurance. Providers must ensure agreements:
- Establish clear eligibility requirements
- Include explanations of coverage and exclusions
- Benefit the consumer when the vehicle is traded in, totaled, or stolen and never recovered
It is easy for consumers to get lost in the complicated fine print of vehicle value protection agreements and lose out on the coverage they deserve. Don’t risk giving up coverage you have paid for, and the agreement company owes you.
Zaner Harden Law will handle your case and hold agreement companies accountable.
Zaner Harden Law. An experienced and attentive Denver car accident lawyer will review your case for free and handle the legalities and all communication with insurance companies so you can move on with your life.
Hurt in a crash? Contact our Denver Car Accident Law Firm Today For Help
For more information please contact Zaner Harden Personal Injury Lawyers to schedule a free initial consultation.
Zaner Harden Law will handle your case and hold agreement companies accountable.
Zaner Harden Law. An experienced and attentive Denver car accident lawyer will review your case for free and handle the legalities and all communication with insurance companies so you can move on with your life.
Zaner Harden Personal Injury Lawyers
1610 Wynkoop Street, Suite 120. Denver, CO 80202
(720) 613 9706
