A diminution in value to your vehicle occurs when another person or driver damages your car. Diminished Value is the difference in the value of your car the moment before a collision and then the moment directly after repairs have been completed.
What Is Diminished Value?
The diminished value is the portion of your harm that cannot be fixed. Once your vehicle has been repaired to a “pre-loss condition” the car still has a negative vehicle history report. This negative vehicle history report is known as Inherent Diminished Value and used-car buyers in Kentucky prefer to purchase cars that were never previously damaged. It is the perception of your vehicle having been in an accident vs. a vehicle that has not been, that reduces its value, even if your car has been fixed to the best of human ability. As such, when you have two identically comparable cars next to one another for sale, a buyer is more likely to buy the one that has not previously been in an accident, or if they are willing to pay for the previously damaged vehicle it will be for less than the one never damaged to begin with. The difference in what someone is willing to spend for your previously damaged vehicle is your diminished value claim.
What if I already Had My Car Repaired?
Kentucky law favors third party diminished value claims. If your car was damaged by the fault of another. You have the right to recover for the lost market value to your vehicle. When another driver causes damage to your car, under normal circumstances, you will file a claim for repairs with the other driver’s insurance company. Your vehicle is repaired as much as possible. Many fear that by having their vehicle repaired and accepting the insurance money for their repairs they have released the insurance company from paying the diminished value. This is not always true.
Under Kentucky law, unless you have actually signed a release, you can bring your Kentucky diminished value claim on it’s own with other accident related claims such as bodily injury claims, lost wages, and other out of pocket financial losses due to the accident.
Examples of Kentucky Diminished Value
2012 Chrysler 300 Limited
- Pre-accident value $31,584.79
- Estimate of repairs $5,499.60
- Diminished Value = $6,632.81 (owed by insurance company)
2003 Toyota Corolla CE
- Pre-accident value $11,579.00
- Estimate of repairs $6,625.00
- Diminished Value = $3,554.00 (owed by insurance company)
How Can Harper Law Co Help Me With Kentucky Diminished Value?
Harper Law Co does not charge for an initial consultation regarding a Kentucky diminished value claim. Feel free to call our office at (502) 780-2226 or use our CONTACT US FORM. We will discuss your case, and share options with you on how you can move forward.