If there’s something you want to avoid at any cost possible while driving, that’s an accident. And this is completely understandable. An accident lowers your car’s market value instantly and is harmful to you, too. But let’s face it; even after trying our best to avoid an accident, we face it, at least for once. So, isn’t there a solution to this? Yes, there is! And that's the diminished value claim in Maine.
Immediately after your car's accident, its market value decreases from the value it had before the accident. This will remain an unavoidable truth even if your vehicle is fully repaired and functional. The difference between your vehicle’s pre-accident and post-accident market value is its diminished value in Maine.
If you have a $50,000 car and its market value is reduced to $40,000 after an accident, the difference of $10,000 will be the diminished value, also known as a diminution of value in Maine.
Maine doesn’t have a law specifically addressing diminished value claims, but courts still allow loss recovery in third-party cases. Here are 2 examples of diminished value claims in Maine:
According to the Maine diminished value law, you have 6 years from the moment of the accident to file a diminished value claim.
While learning about the diminution of value in Maine, you must know how many of them there are. That’s why, after the diminished value claim, we will now walk you through the 3 types of Maine diminished value.
As the name suggests, immediate diminished value is the reduction of a car’s market value after its accident and before it is repaired. An immediate diminished value claim in Maine can help you recover the losses. If you have a BMW worth $100,000 and its value drops to $80,000 immediately after an accident, and you haven’t had it repaired yet. The $20,000 drop in the market value of your vehicle is its immediate diminished value in Maine.
Inherent diminished or diminution of value in Maine is the reduction of value post its repair. If your BMW is worth $100,000 and its value drops to $80,000 after an accident, but now that you have your vehicle repaired, the buyer may still offer you $85,000. The drop of $15,000 even after repairs is the inherent diminished value of your BMW. The inherent diminished value claim in Maine can help you recover the resale value lost after repairs.
If your car is repaired with poor-quality parts, its market value will go even lower. Suppose your $100,000 BMW was repaired after an accident, but it’s not in its original condition. Only due to the poor-quality parts, your car’s value may be $70,000, which could have been at least $90,000 with high-quality parts. The $20,000 drop caused by poor repairs is the repair-related diminished value. A repair-related diminished value claim in Maine can provide reimbursement if your car can’t be restored to its previous condition because of substandard repairs.
Here are 4 steps of how companies calculate the diminution of value in Maine:
Until now, you have read about what a diminished value claim is. Now, let’s learn the steps of how to file diminished value in Maine and get a fair settlement.
First, you need to collect all evidence supporting your diminished value claim, such as police reports, repair estimates, invoices, and photos of damage before and after repairs. You can also determine the pre-accident value of your car during this time.
You should hire a qualified independent appraiser who can help you with this diminished value claim in Maine. The hired appraiser will assess the loss in market value of your vehicle and provide you with a detailed report of diminished value.
You can now submit your diminished value claim. How to submit a diminished value claim? Send all the documents, including the appraiser report, to the at-fault insurance company. When the insurers come for inspection, negotiate with them and try to get the best value possible.
The entire process of a value-diminished claim is much more complex than it seems to be. Don’t worry! ADR Claims is here to help you at every step. We are professional appraisers specializing in diminished value claims in Maine. Contact us for a free quote today!
Our quick and simple appraisal process can help you recoup vehicle-related losses.
