How to File a Diminished Value Claim After a Car Accident in Florida

Please note: We handle diminished value claims exclusively as part of a personal injury case. Unfortunately, we do not accept stand-alone diminished value claims.

After a car accident, damage to your vehicle can significantly reduce its value — even if it wasn’t completely totaled. This depreciation occurs regardless of how well the repairs are done. The reality is that a vehicle with a history of an accident will almost always be worth less than a similar model that hasn’t been in a collision. In legal and insurance terms, this loss is known as diminished value.

Many people in the aftermath of an accident ask about how to receive fair compensation for this loss. As in other states, you are entitled to pursue a diminished value claim in Florida to recover the difference in your vehicle’s market value before and after the accident. By learning more about this concept and how an experienced attorney can help, you can better understand how it may help your case.

What is a Diminished Value Claim? | Why File a Diminished Value Claim?

In Florida, a diminished value (DV) claim allows you to seek compensation for the reduction in your vehicle’s market value following an accident. The premise is simple: a reasonable buyer would likely pay less for a car that has been in an accident, even if it has been repaired to near-perfect condition.

The diminished value of your car is assessed based on comparisons with similar vehicles in the local market. This comparison considers the year, make, model, condition, and mileage of vehicles that haven’t been in an accident and have been appraised or sold within the last 90 days.

Types of Diminished Value Claims in Florida

There are three primary types of diminished value claims in Florida to consider:

• Inherent Diminished Value: This is the most common type and refers to the automatic reduction in a vehicle’s value due to its accident history, regardless of how well it has been repaired. Most diminished value claims in Florida fall under this category.
• Immediate Diminished Value: This type of claim refers to the drop in value immediately following the accident before any repairs are made. Since most insurance policies cover repairs, immediate diminished value claims are rare.
• Repair-Related Diminished Value: If your vehicle’s repairs are subpar or if the car cannot be restored to its pre-accident condition, you might file a repair-related diminished value claim. This is particularly relevant if the repairs involve using lower-quality or non-original parts.

The type of claim you file and the compensation you may be entitled to depend on several factors, including the nature of the accident and the terms of your insurance policy.

How to File a Diminished Value Claim After a Car Accident in Florida

Filing a diminished value claim in Florida involves several steps:

1. Review Your Insurance Policy: Determine if your policy or the at-fault driver’s policy covers diminished value claims. While Florida law supports these claims, the specifics can vary depending on your coverage.
2. Document the Original Value of Your Vehicle: Gather information about what your vehicle’s value was before the accident, including the make, model, year, mileage, and condition. Resources like Kelley Blue Book or NADA Guides can help establish this value.
3. Obtain a Professional Appraisal: Hire a certified appraiser to assess the current value of your vehicle post-repair. The appraiser will compare your vehicle with similar models in the market to determine the diminished value.
4. Gather Repair Documentation: Keep detailed records of all repairs made to your vehicle, including itemized invoices and descriptions of the parts used. This documentation will be essential in proving your claim.
5. File the Claim Promptly: In Florida, you have four years from the date of the accident to file a diminished value claim. However, it’s advisable to start the process as soon as possible, as additional wear and tear or mileage could complicate your case.

When filing your claim, it’s typically included as part of a broader negligence lawsuit. For example, if you were injured, missed work, and your car lost value, you would file a lawsuit covering personal injuries, lost wages, and diminished value, all under one suit.

How to Calculate Your Car’s Diminished Value After an Accident

Calculating the diminished value of your car is a critical step in filing a successful claim. It’s important to get your motor vehicle inspected as soon as possible after the accident. Florida Statutes Section 626.9743 requires a person filing such a claim to provide documentation that includes itemized dollar amounts of all damaged vehicle parts.

Several methods can be used, but they generally involve the following steps:

1. Determine the Pre-Accident Value: Determine your vehicle’s market value before the accident. You can do this using resources like Kelley Blue Book and NADA Guides or by obtaining a pre-accident appraisal.
2. Assess the Post-Accident Value: After your car is repaired, appraise it to determine its current market value. This value should reflect the condition of the vehicle after repairs and its accident history.
3. Calculate the Diminished Value: The diminished value is calculated by subtracting the post-accident value from the pre-accident value. For example, if your car was worth $20,000 before the accident and $17,000 after repairs, the diminished value would be $3,000.
4. Use the 17c Formula: One commonly used method in Florida is the “17c” formula, which is applied as follows:
   • Multiply the car’s pre-accident value by 10% (this is the base loss of value).
   • Adjust this figure based on the severity of the damage (ranging from 0.00 to 1.00).
   • Further adjust based on the vehicle’s mileage (using a multiplier that ranges from 0.00 to 1.00).

While the 17c formula is often used, it is not without controversy, as it tends to undervalue older or higher-mileage vehicles. A professional appraisal might yield a more accurate assessment.

How a Lawyer Can Help with a Diminished Value Claim in Florida

You should always speak with an experienced attorney after a car accident. Attorneys will have experience working with your insurance company, the other party’s insurance, law enforcement, and any other necessary parties to ensure an accurate and fair investigation takes place. Navigating a diminished value claim can be complex, especially when dealing with insurance companies that may undervalue your claim. An experienced attorney can:

• Advise on Coverage: Review your insurance policy to help you understand your rights regarding diminished value claims in Florida.
• Negotiate with Insurers: Attorneys can handle communications with the insurance company, ensuring that your claim is fairly evaluated and that you don’t inadvertently say something that could harm your case.
• Gather and Present Evidence: A lawyer will help collect all necessary documentation, from vehicle appraisals to repair records, and present a compelling case on your behalf.
• Maximize Your Compensation: An attorney can assess all potential damages, including diminished value, lost wages, and personal injury, to ensure you receive the maximum compensation possible.

Having a qualified attorney on your side can give you the best chance of receiving a fair settlement and compensation for injuries and damages, including the diminished value of your vehicle.

Please note: We handle diminished value claims exclusively as part of a personal injury case. Unfortunately, we do not accept stand-alone diminished value claims.

Contact Hartpence Law Today for a Free Consultation

If you have been injured in a car accident, meet with an experienced personal injury lawyer to protect your rights and get the compensation you deserve. Contact Hartpence Law today for a free consultation on your case. We are an experienced and knowledgeable legal team ready to support you during a difficult time.

If you or someone you love was involved in an accident, call us at (855) 680-4911 or schedule a free consultation.

Disclaimer: This blog is for informational purposes only and does not create an attorney/client relationship.