How to Save the Value of Your Car After an Auto-Collision
When your car is damaged in a car accident you can lose money in the long run, even if the accident wasn’t your fault.
Learn from our Georgia Car Accident Attorneys how to get additional compensation for your injury claim and how to make up for lost value on your automobile.
I met with Harry Brown personally and he sat with me for 20 minutes at our initial consultation to explain everything. He even called after my surgery to see how I was doing. I met with him several more times after that and was kept informed about my case throughout. I highly recommend Harry Brown as an attorney.
Diminished Value Explained
When you go to purchase a new or used car, typically the buyer is going to want the history of the car in order to determine the value of the vehicle.
After your car is involved in an accident, and has been repaired, depending on the age and shape, the resale value will typically be less than if it had not been damaged.
Even if you have your vehicle repaired by a high quality reputable auto body shop, the resale value will still decrease. Most buyers will not purchase an automobile that has been in an accident unless they are given a discounted price. This will cause the seller to lose out on profit if never compensated for the diminished value of the car.
You are entitled to reimbursement for your vehicle damages. The insurance company will not automatically send you a check for diminished value. You must file a claim in addition to your regular claim and prove your vehicle has received a loss in value due to the accident.
Usually, this is easier to do with newer cars and can get a little more involved with older cars. In some cases, older cars that are damaged and then repaired might actually be worth more because new parts have been substituted for many of the old parts.
What if the accident was caused by a negligent driver?
In every state, except Michigan, if an auto accident is the fault of another driver, you would receive compensation for diminished value because legally the third party is responsible to make the victim of the accident “whole again” in other words; to repair the victim’s car back to pre-accident market value.
The at-fault driver’s liability insurance policy is obligated to pay the difference in the car’s resale value before and after the accident.
If the at-fault driver is uninsured and cannot pay for the repairs, voucher of payment will depend on whether you purchased uninsured motorist coverage-the portion of insurance policy that protects a policy holder against losses due to uninsured and hit-and-run drivers. About half of states allow recovery for diminished value under this coverage.
Keep in mind it is always the policyholder’s responsibility to prove the repaired vehicle is worth less than before the accident. Payments may be reduced by the degree to which the policyholder was to blame for the accident.
Landmark Case in Georgia: Found Coverage for Diminished Value
In the past, most states did not honor coverage for diminished value after a car wreck. However, a landmark decision in a Georgia overturned this exclusion and found coverage for diminished value.
“The game changing case, is State Farm Mutual Automobile Insurance Company v. Mabry, decided by the Georgia Supreme Court in 2001, “in which the court stated not only does the insurance company have contractual obligation to pay for diminution in value in first-party physical damage claims but also that it has the responsibility to establish a procedure for handling diminution of value claims.”
In return, State Farm constructed a formula (“17c”) by which diminished value claims could be systematic. Since then, insurers have used this foundation as a basis in creating their own formulas.
If you have been involved in a car accident and need assistance in filing an accident injury claim our personal injury attorneys can help. Hiring a professional after an auto accident to advocate on your behalf can save you from making costly mistakes and risking your auto claim.
Our Car Accident lawyers in Atlanta, Savannah, and Athens have hands-on experience and knowledge in negotiating with insurance companies in order to reach a fair settlement for your injuries and damages suffered. Contact the Brown Firm today.
Keep Reading: Is the car making a left hand turn always at fault?
Ready to Talk to a Lawyer Who Has Your Back?
Our Recent Personal Injury Articles
When Taxi Drivers Cause Pedestrian Accidents: Legal Options for Injured Parties
A bus caught fire on Friday night at Ashford Dunwoody Road and I-285 West, causing delays during rush hour. The ramp was closed, and firefighters were able to put out...
Bicycle Accident Settlements – What Compensation Can You Expect?
A bus caught fire on Friday night at Ashford Dunwoody Road and I-285 West, causing delays during rush hour. The ramp was closed, and firefighters were able to put out...
Nursing Homes Overprescribing Drugs to Silence and Subdue Patients
A bus caught fire on Friday night at Ashford Dunwoody Road and I-285 West, causing delays during rush hour. The ramp was closed, and firefighters were able to put out...
How Long Do You Have to File a Wrongful Death Lawsuit?
A bus caught fire on Friday night at Ashford Dunwoody Road and I-285 West, causing delays during rush hour. The ramp was closed, and firefighters were able to put out...
Dog Bite Prevention: Educating Owners and the Public
A bus caught fire on Friday night at Ashford Dunwoody Road and I-285 West, causing delays during rush hour. The ramp was closed, and firefighters were able to put out...
Dog Bite Prevention: Educating Owners and the Public
A bus caught fire on Friday night at Ashford Dunwoody Road and I-285 West, causing delays during rush hour. The ramp was closed, and firefighters were able to put out...
Macon, GA – Two Teens in Critical Condition After Deputy Chase in Stolen Vehicle
A stolen vehicle chase with deputies left two teens in critical condition after they lost control of the vehicle.
Dunwoody, GA – A Bus On Fire On I-285 Causes Ramp Closure
A bus caught fire on Friday night at Ashford Dunwoody Road and I-285 West, causing delays during rush hour. The ramp was closed, and firefighters were able to put out...
Cartersville, GA – Pedestrian Fatally Hit By Train
A pedestrian in Cartersville, GA, was hit and killed by a train while crossing the tracks. The pedestrian's identity is unknown.
Macon, GA – Gray Highway Will Get New Pedestrian Crosswalks In Efforts To Decrease Pedestrian Fatalities
Concrete medianettes will be built on Gray Highway and Shurling Drive in Georgia to improve pedestrian safety. These medianettes will provide a safe space for pedestrians to cross busy roads,...
Contact The Brown Firm
Get the Answers and Compensation You Deserve
You’ll notice the difference when you contact The Brown Firm! Our local dedicated attorneys want to help you recover and rebuild.
Schedule your free consultation by calling (800) 529-1441 or completing our simple online form.