Texas is known as a diminished value state, meaning that you might be entitled to the diminished value of your car after an accident. As a result, it’s important to know the facts regarding a diminishing value claim in Texas.
What, specifically, is auto accident diminished value? Car accident diminished value refers to the difference in your car’s market value from before to after the car accident. The market value of your car decreases after a car accident, even if it is restored to perfect condition. This is because the vehicle’s history report will now have an accident listed.
There are a few different types of diminished value Texas:
Wondering if you can file a diminished value car accident claim in Texas? The short answer is yes. Texas is a diminished value state. Here’s what you need to know about how to qualify and the statute of limitations.
According to Texas diminished value laws, the statute of limitations on diminishing value claims in Texas is two years, and Texas has uninsured motorist coverage for diminished value. You can’t submit a loss of value claim if you were the at-fault party in a car accident or if the car damage was caused by something other than a collision. You also must prove that your vehicle lost value.
A professional can help you calculate your diminished value, but it’s also possible for you to calculate this on your own, using a diminished value calculator for Texas. Diminished value is calculated by considering the type and extent of damage on the vehicle, the cost to repair the vehicle, the repair quality, the cost of similar vehicles never involved in an accident, and market trends. We recommend working with a car accident attorney who can present an accurate valuation of your vehicle rather than relying on your insurance company to value your car fairly.
Factors that Impact Value
There are a number of factors that affect the diminished value of the car, including:
Using the 17c Formula
Insurers typically use the 17c formula to calculate a car’s diminished value. However, this has some limitations that can lower diminished value appraisals than a car’s actual worth. Here is how you can calculate your diminished value, using the 17c formula:
When you file a personal injury claim, property damage is only one portion of your losses. You need to state that you want to make a diminished value claim. In order to qualify to make that claim, you need to show that your car lost value due to the car accident, that there is a particular dollar amount of value lost on the car, and that the insurance company policy covers diminished value.
We recommend keeping all receipts and estimates you have received related to your diminished value claim. Present these receipts and estimates to your lawyer, who will give them to the insurance agent along with a demand for a diminished value claim. Once the at-fault driver’s insurance company receives a demand for diminished value, they will probably attempt to negotiate the final amount of compensation. They might attempt to include diminished value in a settlement along with other losses for the entirety of your claim.
If you want to learn more about diminishing value claim Texas, contact the Texas car accident lawyers at Thomas J Henry Law. With our experienced lawyers on your side, you’ll be able to navigate the complexities of a Texas diminished value claim.