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Understanding Diminished Value Claims
The aftermath of a car accident can often be stressful. Apart from dealing with repairs and potential medical issues, there is a specific financial impact that’s often overlooked but incredibly important to address: diminished value, that is, the loss of a vehicle's resale value.
At Denning Law Firm, LLC, we’re here to help you understand what diminished value is and how it can affect you after an accident. Our dedicated legal team has years of experience fighting for the rights of individuals in Missouri, including Kansas City, Overland Park, Olathe, Shawnee, Leawood, Lenexa, and Kansas City, Kansas. If you’ve been in an accident and believe your vehicle has lost value, we can help you protect your financial future.
What Is Diminished Value?
Diminished value refers to the loss in a vehicle’s resale value following a car accident, even after it has been completely repaired. For example, if you were buying a used car, wouldn’t you want to know if it had been in an accident before? Most buyers would, and that knowledge often results in a drop in the car’s value, even if the damage is repaired to the highest standards. Kansas recognizes three primary types of diminished value:
Repair-related diminished value: Caused by low-quality repairs or visible signs of damage.
Immediate diminished value: A drop in value immediately after an accident, but before repairs are completed.
Inherent diminished value: The most common type of diminished value, which reflects the stigma attached to a previously damaged vehicle, regardless of how well it was repaired.
Understanding how diminished value applies to your situation is key. Even in a well-maintained vehicle, its accident history can work against you during resale or trade-in. That’s why it's important to understand your legal options and whether it's worth pursuing a claim.
The Importance of Filing a Diminished Value Claim
Filing a diminished value claim allows you to recover the financial loss caused by the reduced resale value of your vehicle. Insurance companies often do not disclose this compensation upfront, so it’s essential to be proactive. A diminished value payout makes sure you’re not stuck paying the price for someone else’s mistake on the road.
If you’ve been in an accident and were not at fault, you may qualify to file such a claim. Insurance adjusters may attempt to downplay the diminished value of your car, but at Denning Law Firm, LLC, we prioritize accurately assessing the financial impact of the accident.
Our Stance on Fighting Insurance Companies on Diminished Value Claims
Following an accident, insurance companies often dispute diminished value claims. These companies are primarily focused on protecting their bottom line, rather than your well-being. Some common excuses they might offer against a diminished value claim include that:
The repairs restored the car’s value (which is rarely true in the market)
The diminished value is negligible
The accident damage wasn’t significant
Having dealt with these arguments numerous times, our attorneys are well-equipped to counter such tactics. We work with appraisers, utilize market data, and present a strong case demonstrating why your diminished value must be acknowledged and fairly reimbursed.
Missouri Laws Governing Diminished Value Claims
Missouri operates as a fault state, meaning the driver at fault for the accident is responsible for covering damages. This includes diminished value. Missouri laws allow accident victims to pursue diminished value claims from the at-fault driver’s insurance company.
You typically have up to five years from the date of an accident to file a property damage claim, including claims for diminished value. However, it’s always best to start the process as early as possible for a smoother resolution. When filing a claim in Missouri, it’s helpful to provide:
Proof of the pre-accident value of your vehicle
Documentation of repairs, including costs and receipts
An appraisal or estimate quantifying the vehicle’s diminished value
Missouri courts often recognize inherent diminished value as a legitimate component of claims. If the insurance adjuster refuses to pay for this loss, we can help you assert your rights and recover what is rightfully yours.
Kansas Laws Governing Diminished Value Claims
Like Missouri, Kansas is also a fault state, which means you can seek compensation for diminished value from the at-fault driver’s insurance policy. However, the statute of limitations on property damage claims in Kansas is two years, making timely action even more critical.
One notable difference in Kansas is the recognition that diminished value claims often hinge on strong evidence. To build a persuasive diminished value claim in Kansas, you must focus on:
A detailed and independent appraisal noting the vehicle’s diminished resale value
Clear documentation showing the market value of the vehicle both before and after the accident
Supporting evidence of why the repair history or accident history impacts resale
While Kansas law allows victims to pursue diminished value claims, it may require a well-documented case to reach a resolution.
Car Accident Attorneys Serving Missouri and Kansas
At Denning Law Firm, LLC, our knowledgeable father-daughter team is committed to fighting for you every step of the way. When it comes to protecting your rights, we don’t back down, whether it’s pursuing justice in court or taking on the most challenging cases with confidence.
If you or someone you know is considering filing a diminished value claim, contact us today. We serve clients in Missouri, including Kansas City, Overland Park, Olathe, Shawnee, Leawood, Lenexa, and Kansas City, Kansas. Give us a call today to schedule a consultation.