After a car accident, even a perfectly repaired vehicle may lose significant market value due to its accident history. This loss, known as diminished value, can leave car owners facing unexpected financial losses when selling or trading in their vehicles. Fortunately, Ohio law recognizes the right to claim compensation for diminished value under certain circumstances. At Paulozzi LPA, we are committed to helping clients navigate these claims and secure the compensation they deserve.
What Is Diminished Value?
Diminished value refers to the reduction in a vehicle’s market value after an accident, even if repairs restore it to pristine condition. Buyers are often hesitant to purchase vehicles with accident histories, and reports from tools like CarFax make it easy to identify vehicles that have been in collisions. For example, if your car was valued at $25,000 before an accident but is worth only $20,000 after repairs, the $5,000 loss is your diminished value.
Types of Diminished Value
- Inherent Diminished Value: The most common type, referring to the loss in value due to the vehicle’s accident history alone, regardless of repair quality.
- Repair-Related Diminished Value: Results from incomplete or poor-quality repairs, such as visible damage or structural flaws.
- Immediate Diminished Value: Refers to the decrease in value immediately after the accident and before repairs are made.
Can You File a Diminished Value Claim in Ohio?
Ohio law permits diminished value claims, but eligibility depends on specific factors:
- Fault: You can pursue a diminished value claim if another driver was at fault for the accident.
- Comparative Negligence: Ohio follows a comparative negligence rule, allowing you to recover damages if you are partially at fault, as long as your fault does not exceed 50%. Compensation is reduced in proportion to your fault percentage.
- Policy Terms: Many uninsured/underinsured motorist policies explicitly exclude coverage for diminished value unless otherwise stated.
- Timing: Claims must be filed within two years of the accident, as stipulated by Ohio’s statute of limitations.
Challenges in Pursuing a Diminished Value Claim
Although Ohio permits diminished value claims, they often come with hurdles:
- Insurance Resistance: Insurers frequently undervalue or deny claims to minimize payouts.
- High Costs: Proving diminished value often requires hiring professional appraisers, which can be expensive.
- Delays: Insurers may refuse to pay for repairs until the diminished value claim is resolved, leaving vehicle owners without transportation.
- Policy Exclusions: Many first-party insurance policies exclude diminished value unless explicitly covered.
Despite these challenges, pursuing a diminished value claim is worthwhile, particularly if your vehicle is expensive or has lost significant market value.
How to Prove and File a Diminished Value Claim in Ohio
Filing a diminished value claim requires careful preparation and documentation. Follow these steps:
1. Gather Evidence
- Obtain accident history reports using tools like CarFax.
- Collect detailed repair documentation, including invoices and descriptions of repairs performed.
- Get pre- and post-accident appraisals from qualified professionals.
- Take clear photos and videos of your vehicle after the accident to visually demonstrate the extent of the damage.
3. Get Expert Validation
- Consult appraisers or accident reconstruction specialists to provide expert testimony supporting your claim.
4. Report the Accident
- Notify the at-fault driver’s insurance company promptly to start the claims process.
5. Hire a Certified Appraiser
- A professional appraiser can provide an accurate assessment of your vehicle’s diminished value.
- Work with a skilled legal team to handle negotiations with the insurance company, gather evidence, and strengthen your claim.
Your Trusted Partner in Diminished Value Claims | Paulozzi LPA
Navigating a diminished value claim can be complex, particularly when insurance companies dispute your claim. At Paulozzi LPA, we handle every aspect of the process, from collecting evidence and organizing documentation to negotiating with insurers and representing you in court if needed. By leveraging our expertise, you can focus on recovery while we work to secure the best possible outcome for your diminished value claim. Don’t let insurance companies shortchange you—contact us today for a free consultation.
