What is Diminished Value?

Diminished value is the difference between your car’s market value before the accident and its value after being repaired. Even high-quality repairs cannot fully restore a car to its pre-accident condition, and buyers often consider a vehicle’s accident history when purchasing. This loss in market value can be significant, especially for newer vehicles or high-end cars.

Most People Are Leaving Money On The Table

If your car has been in an accident, even after repairs, it may be worth less than it was before. This reduction in value is known as diminished value. In Denver, Colorado, car owners may be entitled to compensation for diminished value, helping cover the financial loss caused by the accident. Understanding your rights under diminished value law is essential to ensure you receive fair compensation.

Types of Diminished Value Claims in Colorado

In Denver, there are generally three types of diminished value claims:

• Immediate Diminished Value: The reduction in your car’s value immediately after the accident, before any repairs.
• Inherent Diminished Value: The permanent reduction in value even after repairs are completed.
• Repair-Related Diminished Value: Loss in value due to substandard or incomplete repairs.

Colorado law primarily recognizes inherent diminished value claims, meaning you may be able to recover compensation even if your vehicle is fully repaired.

Who Can File a Diminished Value Claim?

If your car was damaged due to someone else’s negligence, you may be eligible to file a diminished value claim with the at-fault driver’s insurance company. It’s important to note that you must be the owner of the vehicle at the time of the accident, and you need to provide evidence of the vehicle’s pre-accident value and the repairs performed.

How to Calculate Diminished Value

Calculating diminished value typically involves:

• Determining the vehicle’s pre-accident market value using guides like Kelley Blue Book or NADA.
• Assessing the quality and extent of repairs.
• Factoring in the vehicle’s accident history and its effect on resale value.

Many car owners hire professional appraisers to provide a diminished value report, which can be submitted to the insurance company as part of the claim.

Why Hire a Colorado Diminished Value Attorney?

Insurance companies may undervalue diminished value claims or deny them entirely. A knowledgeable Denver Diminished Value Attorney can help:

• Gather evidence of the vehicle’s pre-accident value and repair costs.
• Prepare a professional appraisal report.
• Negotiate with the insurance company to maximize your compensation.
• File a lawsuit if the insurer refuses to pay a fair settlement.

Having legal representation ensures your rights are protected and increases the likelihood of receiving full compensation for your vehicle’s loss in value.

Protect Your Vehicle’s Value After an Accident

If your car was involved in an accident in Denver, you may be entitled to compensation for diminished value. Acting promptly and working with an experienced attorney can help you recover the financial loss caused by the accident and protect your vehicle’s worth.