What Is a Diminished Value Car Insurance Claim?

Say you have a newer car and are involved in an accident that is not your fault. When it comes time for the insurance company to reimburse you for the repairs that your automobile needs to bring it back to its old functioning self, the insurance company will either solicit bids from mechanics or ask you to get bids and will cut you a check accordingly. You can then take your car in to get fixed at whichever mechanic you choose with the money they provided you and you are all set. Everything is back to the way it was before you were involved in the accident, right?

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Not necessarily. Why? Because the resale value of your car has gone down significantly now that it has been involved in a serious auto accident. With the prevalence of online title history searches, used car buyers are able to find out whether the car they are about to buy has ever been in a serious accident. Used car buyers are weary of those cars that have been in an accident for several reasons:

  • There may be structural damage to the frame of the car that was not repaired after the accident;
  • The replacement parts may not be of the same quality as the original equipment;
  • The repairs themselves may not have been made by a license and certified auto mechanic who specializes in that particular make and model of vehicle.
  • Used car buyers may not want to take any chance that the car is not reliable.

The reality is, there are plenty of used cars on the market. The fact that a car has been in an accident is a strike against that car, and will result in a used car buyer offering less money than if the car had not been involved in an accident. So where does that leave accident victims who hope to be made whole after the accident?

Diminished Value Insurance Claims

Maryland state law allows what is called a “diminished value claim” to compensate the accident victim for the decrease in value of their car after the accident. Insurance companies, however, are often loathe to pay these claims because they know that they can often get away with denying them.

Depending on your policy, however, you may be entitled to a diminished value claim. The best way to find out is to contact an experienced Maryland car accident attorney. Insurance companies sometimes will not act until they are contacted by an attorney, for fear that they will be taken to court. So, even though your policy may allow a diminished value claim, the insurance company still may deny it hoping that you will forget about it or just go away.

Have You Been Involved in a Maryland Auto Accident?

If you have been involved in a Maryland auto accident for which you were not at fault, you may be entitled to a lump sum amount from the other driver’s insurance company (or even your insurance company, if they were uninsured). To find out more, contact a Maryland car accident attorney at the law firm of Lebowitz & Mzhen, LLC. The skilled attorneys at Lebowitz & Mzhen have the experienced and diligence you need to effective bring your diminished value claim. Click here, or call 410-654-3600 today to schedule your initial consultation.

More Blog Posts:

Maryland Man Dies in Fatal Left-Turn Accident, Maryland Car Accident Attorney Blog, published March 27, 2014.

Three-Car Accident on Route 340 Kills Two, Injures Four, Maryland Car Accident Attorney Blog, published March 20, 2014.

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