If you are involved in a car accident, the vehicle that’s involved can incur lasting harm in the way of a diminution in value. If Vehicle A is damaged and repaired to a pre-loss condition, it is still inherently worth less than Vehicle B, of the same exact make/model/mileage/features, but having never been in a collision. The difference between the worth of Vehicle B and Vehicle A is Vehicle A’s “diminished value”.
Pursuit of a diminished value claim is often left with a message akin to “sue us”. With that in mind, as well as noting that there is an upfront cost to submit a diminished value claim, a cost/benefit analysis is always the first step to deciding whether or not to pursue a diminished value claim. (more…)