Deciphering Diminished Value Claims in Hawaii

We begin this blog by learning what diminished value in Hawaii is. It is also known as the diminution of value in Hawaii. The diminished value is the reduction in the market value of your car after it’s damaged in an accident. It remains the same, even if you repair your vehicle. This means that even after your car is repaired, whether it’s restored to its original condition or not, it will still have a lower market value than it had before the accident.

If your car was worth $80,000 before the accident, its market value will likely decrease to $75,000, depending on the severity of the damage. The drop of $5,000 in your car’s market value is its diminished value.

Moving to the claim, a diminished value claim in Hawaii is the right that allows you and other residents to recover the loss from the car damage. You can recover this value from the at-fault driver’s insurance company.

Immediate vs. Inherent vs. Repair-Related Diminished Value

Immediate Diminished Value

Your car has a certain market value after its accident and before repair. It is the immediate diminished value of your vehicle. Couldn’t understand? Suppose your $80,000 car is worth $70,000 when it’s damaged in an accident. The $10,000 difference in your vehicle’s value before and after the accident is its immediate diminished value.

Inherent Diminished Value

Once a car is damaged, its market value will decrease, no matter what you do. If you get your vehicle repaired like a brand-new one, its market value won’t be equal to what it was before the accident. Suppose you repair your $70,000 car after an accident. The market value of your vehicle was $60,000 after the accident, which increased to $65,000 after its repair. The $5,000 difference between your car’s market value before its accident and after its repair will be its inherent diminished value.

Repair-Related Diminished Value

Repair-related diminished value in Hawaii is the third and final type of value. If your car is damaged and poorly repaired only to stay functional, this will further reduce the vehicle’s market value. When your car is worth $60,000 after an accident, and the market value decreases to $56,000, and after its repair, the repair-related diminished value is $3,000. How? Subtract the post-repair market value of your car from its market value before the repair.

Hawaii Diminished Value Claim Law

As you have understood, the diminished value claim in Hawaii is a right to recover your loss. So, isn’t there any law related to this, right? Yes, there is. We are covering the Hawaii diminished value claim law in the following points.

• If your vehicle was damaged in an accident, you are eligible to file a diminished value claim if you aren’t at fault.
• You can’t file the claim yourself; the Hawaii government only acknowledges if it’s a third-party claim.
• You can file the claim against your own insurance policy’s uninsured motorist coverage if the at-fault driver is a hit-and-run victim or uninsured.

One more thing: the process of claiming diminished value can be different depending on the state. For example, if you claim diminished value in California, there will be different things to keep in mind.

Filing a Diminished Value Claim in Hawaii

From the points mentioned above, you must have learned about the Hawaii diminished value claim law. Let’s now gear up and decode how to file a diminished value claim in Hawaii:

• First of all, you need an appraisal report from an independent and professional appraiser. ADR Claims is a professional appraiser company in Hawaii.
• You need to collect documents related to the diminution of value in Hawaii, such as photos of damage before and after the repair, appraisal, and repair reports.
• Contact the insurance company and send them a demand letter, filing your Hawaii diminished value claim. If you are nervous and don’t know how to talk to them, your hired appraiser company will help you throughout this process.
• Finally, negotiate with the insurers after they inspect your car and calculate the diminished value. They will try to give you the lowest payout possible, so present a strong case and bargain well.

Calculating Diminished Value in Hawaii

Why are we writing this Hawaii diminished value claim blog? We are writing this to help you get the best settlement amount after your car is damaged. It is only impossible as long as you don’t know how to calculate diminished value in Hawaii. That’s why we will now learn how to calculate this value.

• Use trusted sources like Kelley Blue Book and calculate the market value of your car before it has an accident.
• Most insurance companies apply a 10% cap on the pre-accident market value, so use that formula.
• Apply the damage multiplier, which ranges from 0 (for minimal damage) to 1 (for severe damage).
• Depending on how low the mileage your vehicle has after its accident, you can apply for a higher diminished value claim in Hawaii. Adjust the car’s market value based on your car’s mileage before and after its accident.

ADR Claim, an independent, professional appraiser in Hawaii, is ready to help you every step of the way. Whether you want to know how to submit a diminished value claim or struggle with calculating your vehicle’s market value, just discuss it with us. Call us at 866-659-5146 or email us at office@adr-claims.com for a free consultation.