Diminished Value Claims in Ohio: What They Are and How to File

When your car is damaged in a crash, you may assume that everything’s squared away once your vehicle is repaired—but that’s not always the case. Even with properly done repairs from a reputable garage with OEM parts, your vehicle’s value may suffer. That may negatively impact you once you go to trade in or sell your vehicle. When this occurs, you may be able to file a diminished value claim to recover your losses.

That’s where our team of car accident attorneys steps in to help. We understand how much of an unpleasant surprise it can be when you try to turn your vehicle in, only to have the value drop dramatically once the Carfax report shows a previous collision. Let’s talk about your options. Call Crandall & Pera Law, LLC today.

What is diminished value?

Diminished value is a term used to describe how much a vehicle’s value drops after it is involved in a crash. Even if repairs successfully bring a vehicle back to its pre-accident condition, your car’s value may be permanently impacted by the collision. Vehicle history reports like Carfax disclose previous crashes to give buyers and dealerships a full history of a vehicle. This allows buyers and dealerships to decide whether or not they want to take the risk of a vehicle that they believe may have hidden structural damage, long-term mechanical problems, or overall reduced reliability.

This can be a hard hit for those who take impeccable care of their vehicle in an effort to preserve its resale value. Through no fault of their own, they may be left with fewer options when they go to upgrade.

Different types of diminished value claims

There are multiple types of diminished value claims that car accident lawyers handle.

Immediate diminished value

This type of claim refers to the loss of value a car has immediately after a crash before repairs are made. Because most vehicles are eventually repaired, this isn’t usually relevant.

Inherent diminished value

Most diminished value claims go this route. They focus on a vehicle’s loss of value after it has been repaired. The main issue at the heart of this is that most buyers view repaired vehicles as less desirable and less reliable than vehicles that have never been in a crash.

Repair-related diminished value

This type of claim is relevant when a mechanic performs incomplete repairs, defective repairs, or repairs with low-quality parts. In these cases, a vehicle’s value may drop even more than it would have with proper repairs.

Can you file a diminished value claim in Ohio?

Ohio drivers can pursue diminished value claims in certain circumstances. If they are involved in a collision caused by another driver, they may be able to seek this type of compensation from the other party’s insurance company.

Insurance companies aren’t always forthcoming with this information. As a result, many people accept settlements that cover their medical expenses and repair costs, not realizing that they are essentially leaving money on the table.

Diminished value claims are usually strongest when a vehicle is somewhat new, low mileage, valuable, luxury, or significantly damaged in the crash. A vehicle that had minimal value before a crash is unlikely to suffer a significant drop in value after a collision.

How to file a diminished value claim: Ohio process

Just like it is with any other part of a car accident claim, diminished value claims come down to preparation and evidence.

First, you want to document your vehicle’s pre-accident value. This often includes pulling records from multiple appraisal sites, supplying maintenance records that show you took good care of the car, and actual appraisals of your vehicle.

Next, you should keep copies of insurance estimates, police reports, and repair invoices. Detailed repair documentation may support your claims of the severity of the damage and the type of repairs performed.

The next step may be to get a diminished value appraisal. This type of appraisal looks at the value of the car before the collision and then uses numerous factors to determine the value of the vehicle post-repairs.

Finally, you’ll take your claim to the insurance company and request compensation. While you can do this alone, many people choose to work with a car accident attorney. Insurance companies are very good at finding reasons to deny valid claims, and working with a lawyer ensures that you have someone advocating for you.

Which factors affect a diminished value claim?

A number of factors influence how much your claim is actually worth. We’ll go over a few:

• Vehicle age and mileage: A vehicle that was on its last legs before the crash won’t lose nearly as much value as a car that was just driven off the lot yesterday. The lower a vehicle’s mileage and the newer it is, the more severely its value may be affected by a crash.
• Severity of the damage: Buyers may be able to overlook minor cosmetic damage that was successfully repaired, but are less flexible with accidents resulting in frame damage, airbag deployment, and significant collision repairs.
• Quality of repairs: Low-quality repairs using third-party parts may further decrease a vehicle’s value.
• Vehicle brand and market demand: In-demand brands and luxury brands may see a more significant drop in value than vehicles from low-end brands or brands in low demand.

Worried about your vehicle’s value? Let’s talk about your options

If your vehicle has lost value due to a collision, let’s fight to make it right. Call Crandall & Pera Law, LLC or reach out online to set up a consultation now.