What You Should Know About Alabama Diminished Value Claims

If you’ve been in a car accident in Alabama, you may be entitled to more than just repairs for your vehicle. One important aspect that often goes overlooked is the concept of diminished value. Understanding this can help you navigate the complexities of car insurance claims more effectively.

Wreck Check Atlanta can help you understand the Alabama auto insurance rules that apply if you have suffered an auto accident and question the repairs on your vehicle.

What is Diminished Value?

Diminished value refers to the reduction in a vehicle’s market value after it has been involved in an accident, even after repairs have been made. For example, if a car is worth $20,000 before an accident is repaired, it may only be worth $15,000 afterward due to its accident history.

In Alabama, you may be able to claim this loss when seeking compensation from an insurance company.

• The Alabama Supreme Court agreed in King Motor Co. v. Wilson, 612 So. 2d 1153 (Ala. 1992) that a previously damaged automobile is worth less than one that has never sustained damage.
• They further determined in Coffee County Commission v. Smith, 480 So. 2d 1194 (Ala. 1985) that the proper measure of damages is the difference in the value of the property before and after the damage.
• The AL Supreme Court upholds the tort principle of Moebes, 709 So. 2d 477, 478 (Ala. 1997) that compensatory damages are intended to make the injured party whole.

NOTE: Alabama follows a strict contributory negligence rule which means if you are found to be even 1% at fault for the accident, you may be barred from recovering any compensation. Understanding this law is crucial in your approach to filing a claim.

Types of Diminished Value Claims

There are generally three types of diminished value claims you can pursue in Alabama:

1. Immediate Diminished Value: This claim reflects the loss in value at the moment after the accident, prior to any repairs being made.
2. Inherent Diminished Value: This is the loss in value that remains even after the vehicle is fully repaired. Many buyers are often wary of purchasing a car that has had significant damage, leading to a drop in resale value.
3. Repair-Related Diminished Value: This type of claim may arise if the repairs to your vehicle were not completed properly, resulting in a further decrease in value.

Wreck Check Atlanta Can Help You with a Diminished Value Claim in Alabama

We can provide a professional appraisal to determine the diminished value of your vehicle after the repairs. This can strengthen your claim.

Here is what we recommend:

1. Document Existing Damage: Take comprehensive photographs of your vehicle before repairs, as well as any existing damages.
2. Obtain Repair Estimates: Collect detailed estimates from certified mechanics indicating the repairs needed and their costs.
3. File with the Insurance Company: Once you have all the necessary documentation, file a claim with the at-fault driver’s insurance company. Include your appraisal and any evidence documenting your car’s reduced value.

Navigating an accident claim in Alabama can be complex, particularly when it comes to understanding diminished value claims. Whether your vehicle has lost value due to an accident or you seek to advocate for your rights, knowing how diminished value claims work is essential to securing a favorable outcome. Contact Wreck Check Atlanta today to learn more.