For a car owner, nothing can be more frustrating than seeing their vehicle damaged after an accident. Not only because an accident is highly stressful, but also because it significantly reduces the vehicle’s market value. Fortunately, the diminished value claim in Alaska allows you to recover the loss of your vehicle’s market value after an accident.
When your car is damaged, and its value decreases, the difference between the vehicle’s market value before and after the accident is diminished in Alaska. Many people also call it the diminution of value in Alaska.
The diminution of value in Alaska is differentiated into 3 categories.
Immediate diminished value is the difference between your car’s market value after its accident and before repair. If your $57,000 car is valued at $55,000 after an accident and before repair, the difference of $2,000 is its immediate diminished value.
Inherent diminished value is the difference between your vehicle’s market value before its accident and after repair. If your $57,000 car is valued at $55,000 after an accident and the post-repair value is $56,000, then $1000 will be its inherent diminished value.
Suppose your car is worth $55,000 after its accident, but after repairs, its value reduces to $53,000; then $2,000 will be its repair-related diminished value. In other words, the repair-related diminution of value of a car is the difference between its market value before and after repair.
A diminished value claim in Alaska is your legal right to recover the losses in case your car is damaged in an accident. Generally, you can request the Alaska diminished value claim from the at-fault party’s insurance company. But if it is a hit-and-run situation, you can demand a payout from your own insurance company.
There are certain things you need to keep in mind when filing a diminished value claim in Alaska:
You can file a diminished value claim only if it’s damaged in an accident and you are not at fault; otherwise, it’s not legal.
The best time to file an Alaska diminished value claim is after your car is repaired. By now, you will have some documents to prove the diminished value.
While Alaska allows filing diminished value claims, it comes with a legal deadline. You can only file a claim within 2 years from the date of the accident. After this time limit, your filing will be denied.
UM/UIM coverage stands for uninsured motor coverage or underinsured motor coverage. You are eligible to file the diminished value claim against your own insurance company in case the at-fault driver is uninsured or underinsured.
You will need every possible evidence to support your diminished value claim case. This will include obtaining an appraisal from a professional appraiser, repair reports, and photographs of damage before and after repair.
If you don't know how to file a diminished value claim in Alaska, the following steps will help you with it:
The process starts with you obtaining an appraisal report from a qualified appraiser, like ADR-Claims, the best appraiser in Alaska. Contact them and request an inspection of your car. They will evaluate your vehicle and provide you with a detailed appraisal report, including the best possible market value of your car after its accident.
Collect all the documents related to your diminished value claim in Alaska, such as police reports, repair estimates, invoices, photos of the damage and repair process, appraisal reports, etc. Organize them; these documents will help you present a strong case and negotiate for a fair settlement price.
Organize all the evidence and send it to the insurance company along with a demand letter. Call them and let them know about your filed diminished value claim.
Get ready with your evidence to negotiate with the insurers for the best settlement payout. Insurance companies are business-minded and will try to close the deal with the lowest payout possible, but you need to bargain for a fair settlement.
It’s often seen that negotiations aren’t successful. If the same happens to you, seek legal help. You should approach a lawyer experienced in value-diminished claim cases. Their fees might be higher, but you will have a higher chance of winning the case and getting the demanded payment.
Most of the time, insurance companies resist paying for diminished value claims because they see them as an extra expense. They are business-minded, so they want to keep the payouts as low as possible. Insurers often face fraudulent claims; this leads them to suspect every claim. During a negotiation, insurers will likely give you the following excuses:
A diminished value claim isn’t an easy and straightforward process, not even a bit. To successfully attain your requested payout, you need to have extensive knowledge in this field and the ability to bargain for your demanded value without hesitation.
ADR Claims is here to help you all the way from start to end. We will help get a fair settlement with minimal effort. Call us at 866-659-5146 or email office@adr-claims.com for a free quote.
Our quick and simple appraisal process can help you recoup vehicle-related losses.
