Diminished Value Attorney Colorado
Understanding Diminished Value Claims in Denver, Colorado
Being involved in a car accident is stressful and overwhelming—especially if your vehicle is damaged or you are left with serious injuries. Even after repairs are completed, your car may lose market value simply because it has an accident history. This reduction in worth is known as “diminished value” in Colorado. With the help of a Malman Law Firm diminished value attorney, you may be able to file a diminished value claim and recover compensation.
What Is Diminished Value?
In Colorado, diminished value refers to the difference between your vehicle’s value before an accident and its value after repairs. Even high-quality repairs cannot erase a vehicle’s accident history, and buyers or dealerships often offer less for cars that have been damaged.
This loss can be especially frustrating when the accident was not your fault—for example, if you were hit by a drunk or distracted driver. The attorneys at Malman Law Firm can help you pursue a diminished value claim to recover the compensation you deserve.
Diminished Value vs. Repair Costs
It’s important to understand that diminished value and repair costs are not the same:
Repair costs cover the work needed to restore your vehicle to safe driving condition and are typically paid by insurance.
Diminished value reflects the lasting reduction in your vehicle’s market worth due to its accident history, even after repairs.
Insurance companies may pay for repairs but overlook the fact that your car is still worth less on the open market.
How Is Diminished Value Calculated?
Calculating diminished value involves three main steps:
Determine Pre-Accident Value – Assess the market value of your car before the accident, factoring in its make, model, year, mileage, condition, and accident histor
Assess Post-Repair Value – Obtain a professional appraisal after repairs are completed. Reputable dealerships or appraisal companies can provide an accurate valuation.Calculate the Difference – Subtract the post-repair value from the pre-accident value. The result is your vehicle’s diminished value.
Factors That Affect Diminished Value
The amount of value lost depends on:
The extent and type of damage sustained
The age and mileage of the vehicle
The car’s overall condition and features
Generally, the more severe the accident, the higher the diminished value.
Filing a Diminished Value Claim in Colorado
To file a diminished value claim, you must provide evidence of your loss—typically through a professional appraisal. This proof is then submitted to the at-fault driver’s insurance company. While insurers may offer a settlement, they could also deny or undervalue your claim.
Working with a Malman Law Firm attorney can strengthen your case, protect you from lowball offers, and increase your chances of receiving fair compensation.
FAQs
Q: Is diminished value the same as depreciation?
No. Depreciation is the natural decline in value over time due to age, mileage, and normal wear. Diminished value results specifically from accident-related damage.
Q: How long does it take to settle a diminished value claim?
Timelines vary depending on the complexity of the case, the vehicle’s value, and the insurance company’s response.
Q: Why does diminished value matter?
If you plan to trade in or sell your car, its accident history will likely lower its resale value. Filing a claim helps you recover some of this loss.
Q: Is an insurance company required to pay diminished value?
It depends on the circumstances and the policies involved. Reviewing your coverage and consulting with a Diminished Value Attorney can help determine whether you’re entitled to compensation.
