Understanding Diminished Value: First Party vs. Third Party
If the accident you were involved in was not your fault, diminished value is probably owed to you. As such, a third party claim is entitled to diminished value no matter what part of the United States the accident has occurred in. On many occasions, clients have come to Autoloss concerned as they live in Mississippi, Oregon, or North Carolina and as such are they still owed diminished value for their recent wreck regardless of what state the accident occurred in. Simply put, diminished value is not dependent on the state in which you reside. If you have been in a wreck, and you own or lease a newer model car, you are owed diminished value.
What is diminished value?
Diminished value is the monetary difference between a car’s pre-accident value and its value after the accident. For example, if a 2005 Mercedes Benz E 320 is worth $40,000. prior to the accident loss and now worth $25,000. after the loss, the value of the vehicle has been diminished by $15,000. As such, the vehicle’s owner is entitled to be “made whole”. As the blameless party, you are entitled to a diminished value check for approximately $15,000.
First Party vs. Third Party
First party claims are those where the “the insured” has a direct contract with an insurance company. For example, if the insured was driving and accidentally hit a dear then the insured would turn the diminished value claim into their insurance company. Depending upon the insured’s state of residence and insurance policy language, we estimate that diminished value is owed in approximately 50% of the claims. First party diminished value claims vary significantly depending on the insured’s policy and whether they are claiming diminished value under the collision, underinsured part of the policy, or the uninsured part of the motorist coverage.
Conversely, third party diminished value claims are considered more matter-of-fact, with an estimated 99% of claimants having the right to recover diminished value. Simply stated, tort law allows for the innocent party to be entitled to monetary compensation, a.k.a. to be ”made whole”. As the decrease in the claimant’s vehicle’s value is part of the damage caused by the insured, the claimant is entitled to monetary funds for diminished value.
Diminished value claims typically settle within thirty to sixty days if the claimant uses a reputable diminished value company, such as Autoloss. The appraisal is usually completed within a few days and faxed into the insurance company. Claimants typically have a diminished value check for thousands of dollars within 30-60 days.
As there are many types of first party claims, it is prudent to give Autoloss a call regardless of the type of claim so a licensed diminished value professional can go over the claim with you – typically for free.
Do I need an attorney to settle a Diminished Value Claim?
If the claimant hires a reputable diminished value company such as Autoloss, within thirty to sixty days, the majority of claimants will receive a check for thousands of dollars for their diminished value, sans the use of an attorney.
Many attorneys are taking notice of diminished value claims and while most of those specialize in personal injury claims, they are adding diminished value claims to their case load as such claims settle so quickly and for thousands of dollars.
Don’t be Fooled
Call Autoloss today and find out if you are owned a diminished value check. No state has mandates that dictate the innocent party cannot recover diminished value. Don’t be fooled by insurance claims representatives or the repair shops – you deserve to be “made whole.”