North Carolina Diminished Value Claims After Car Accidents: What You Can Do

If your car is damaged in an accident and another driver was at fault, you expect their insurance company to pay for repairs. In many cases, though, the damage to the car’s value can’t be fixed – it’s simply worth less than it was prior to the crash.

That’s “diminished value” in a nutshell, and it’s something you should ask for. This money is left on the table too often!

The Law Offices of James Scott Farrin focuses on helping injured car accident victims seek compensation from negligent drivers. If you, thankfully, suffered only vehicle damage from your car wreck, here is important information on fighting for diminished value from the at-fault insurer.

How Does Diminished Value Work in North Carolina?

When a vehicle has been damaged and repaired, it’s generally worth less than it would have been had it not been damaged in the first place. That reduced value is often part of the harms and losses you may suffer when another driver causes an accident and structurally damages your car.

Your car’s diminished value is something you should seek compensation for.

How Will Someone Know My Car Was Damaged?

North Carolina has fairly comprehensive damage reporting requirements as a matter of law.

Services like CarFax, AutoCheck, and Kelley Blue Book use the information they have available to build vehicle histories, and many (if not most) people prefer a vehicle with no previous damage to one that has been repaired.

Therefore, your car is likely to be less desirable in the event you need to sell it – its value may have been diminished.

How Is Diminished Value Calculated in North Carolina?

It depends on what your car was worth before the accident and its value after it is repaired. The difference between those numbers may be the “diminished value.”

For example, let’s say your car was worth $20,000 before the accident and was in good condition for its age and mileage. After the accident, and the subsequent repairs, it is only worth $15,000. The difference is $5,000, and that’s likely what you would seek in a diminished value claim.

There may also be complicating factors. What if your car is leased? What happens when you turn it in? What if you and the auto insurance company disagree on the pre- and post-accident value of your car? Many questions may arise.

How Do I File a Diminished Value Claim?

You demand compensation from the at-fault insurance company’s adjuster using their diminished value claims procedures.

Most people forget about diminished value, if they knew about it in the first place. Don’t count on the at-fault insurer to remind you to make a claim for diminished value. The insurance company is protecting their interests, not yours, and most make more by paying you less (including trying to save costs by sending you through their direct repair program – which may not be the best option for you!).

What Is the Statute of Limitations for Diminished Value Claims in North Carolina?

Generally, the statute of limitations for filing a diminished value claim is three years from the date of the accident.

If you aren’t at least considering a diminished value claim against the at-fault insurer, you could be leaving money on the table – money that you may be entitled to. Even if the other driver was not insured, your uninsured motorist coverage could potentially cover your diminished value claim.

Contact the Law Offices of James Scott Farrin if You Have Been Injured in a Car Accident Caused by Another

Injured by a negligent driver?

If we help you with your injury claim, we may be able to also handle your diminished value property damage claim, too.

For a free case evaluation, call us right away at 1-866-900-7078 or contact us online.

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