Jill Kolodner | October 4, 2024 | Car Accidents
When your car is wrecked, it loses value. We refer to that as diminished value. Even if your vehicle is repaired, it may lose value because of an accident. The vehicle’s diminished value is equal to the difference between the value of your car before the accident and the value of your car after the repairs are made.
Insurance companies do not offer to pay diminished value claims. An insurance adjuster will not explain the diminished value or tell you that you might be entitled to compensation for a diminished value claim. It is up to you to demand compensation for diminished value. Unfortunately, many people settle property damage claims without knowing they could be entitled to more compensation than the insurance company offers.
Settling a Property Damage Claim in Maryland Without Legal Advice
Insurance companies use whatever means available to them to avoid paying insurance claims. Property damage claims are often paid quickly after a car accident. The victim may still be receiving treatment for their injuries when they settle a property damage claim.
The property damage claim is separate from a personal injury claim. Therefore, you can settle one claim without settling the other. A person may not have had a chance to speak with an attorney to learn about diminished value claims. They do not know they need to ask for compensation for the diminished value of their vehicle.
The insurance company agrees to pay for the vehicle’s repairs. The owner signs a release of claim for the repairs and moves on with their personal injury claim. The release prevents the owner from going back to the insurance company to demand compensation for diminished value because the owner releases the company from further liability for property damage when they sign the release.
Remember to always read the fine print when signing documents for the insurance company. The company could insert language that can hurt your chances of receiving a fair settlement for your injury claim.
An attorney will explain your legal rights, including the types of damages you could be entitled to receive for a car accident claim.
What Is the Law in Maryland for Diminished Value Claims After a Car Accident?
Maryland law is clear regarding diminished value claims. The Maryland Court of Special Appeals decided a case in 1971 that said a person can recover an amount for diminished value if they can prove the value of their vehicle decreased even though it was repaired. However, insurance companies are reluctant to pay diminished value claims. Therefore, you may have to file a lawsuit to recover what is owed to you.
The problem is finding an attorney to file a diminished value lawsuit. Personal injury lawyers are paid based on a contingency fee, which is a percentage of what they recover for the case. Most attorneys would spend more time litigating a diminished value claim than they would be paid.
Considering that you will need to hire an expert to establish the value of your damages and pay court fees, the amount you receive after paying an attorney would be minimal. So, can you do anything to recover damages for the value your vehicle lost because of an accident?
How Do I File a Diminished Value Claim in Maryland?
Whether it is worth filing a lawsuit for a diminished value claim depends on how much your vehicle decreased in value. If the value decreased by a few hundred dollars, pursuing a claim might not be worth your time and expense. However, if your car’s value decreased by thousands of dollars, it might be worth pursuing a diminished value claim.
The first step is to determine how much your vehicle decreased in value. A car dealer may be able to help you with an estimate for your car’s value in its present condition, considering the accident and the repairs. Compare that figure with the fair market value of your vehicle before the accident. You can check your vehicle’s value through Kelly Blue Book and NADA online.
Before you settle the property damage claim, tell the insurance company you want an amount equal to the diminished value of your vehicle before signing a release. Some insurance companies might pay your diminished value claim. It depends on the amount you are demanding and the company.
If they refuse to pay your diminished value claim, you can file a lawsuit. Finding an attorney willing to sue for a diminished value claim could be difficult. Some lawyers might pursue the claim if you were seriously injured, and they are representing you in your personal injury claim.
Otherwise, you may consider filing a small claims lawsuit yourself. Small claims courts handle cases involving less than $5,000 in damages. Filing a claim in small claims court is fairly straightforward and might encourage the insurance company to pay your claim instead of having an attorney defend the case in court.
Keep in mind that you will need evidence proving the value of your diminished value claim. Generally, you would need an expert witness to establish the value of your claim. Expert witness fees can be expensive, depending on the witness and the work involved to determine the value of your claim.
Before filing a lawsuit for diminished value, it would be wise to research the cost of hiring an expert witness and the value of your claim. The cost of filing a lawsuit might outweigh the value of your claim.
Ask a Baltimore Personal Injury Lawyer for Advice About a Diminished Value Claims in Maryland
Most personal injury lawyers offer free consultations for accident victims. You can get advice and learn about your legal options for your diminished value claim.
Contact the Baltimore Car Accident Law Firm of WGK Personal Injury Lawyers Today For Help
For more information contact the Baltimore car accident law firm of WGK Personal Injury Lawyers to schedule a free initial consultation.
WGK Personal Injury Lawyers
14 W Madison St, Baltimore, MD 21201, United States
(410) 837-2144
WGK Personal Injury Lawyers – Dundalk Office
7329 Holabird Ave Suite 3, Dundalk, MD 21222
By appointment only
(410) 970-3080
