Car accidents are never something anyone looks forward to. However, while we do our best to avoid them, unwanted things happen. If you own a car, an accident can not only put you under a lot of stress but can also severely damage the vehicle and harm you. But, suppose you are in this unfortunate situation, then what will you do? The diminished value claim in Montana is the answer to this question.
The new market value of your beloved vehicle after it meets with an accident will be less than its pre-accident market value. It will not change whether you repair the vehicle perfectly, and it looks like a brand-new one. This reduction in your vehicle’s market value is the diminished value or diminution of value in Montana. You can file a claim to recover your loss thanks to Montana diminished value laws.
Do you know that diminished value is divided into 3 categories? If not, we describe them all here.
The immediate diminished value term is used to describe the reduction of a vehicle's market value immediately post-its accident and before repairs. For instance, your $30,000 car suffered $8,000 damage, and before the repairs, its value dropped to $20,000 due to the damage. The $10,000 drop is the immediate diminished value.
Permanent diminished value is the loss in your vehicle’s market value after the repairs are made perfectly and your vehicle is fully functional. Just because it now has an accident history, its value gets lowered. If you have a $50,000 car with an accident history, a buyer will pay you a lower amount.
Maybe $45,000. For the same vehicle that has never had an accident, the buyer will happily pay a higher amount, and this difference in amount is an inherent diminished value.
A poor or incomplete repair results in Repair-related diminished value. If your car is repaired using cheaper parts, it will not be in its original condition, which further lowers its value.
If your $50,000 vehicle is in an accident and is poorly repaired. The buyer might pay $35,000 instead of $45,000. The $10,000 fall in the market value of your vehicle is the repair-related diminished value.
Myth: Only luxury and high-end vehicles qualify.
Reality: Any car, whether it is a luxury one or not, can qualify for a diminished value claim in Montana.
Myth: You aren’t eligible to file a diminished value claim if you were partially at fault for the accident.
Reality: This may be true for a few states, but not for all. For example, you aren’t eligible to file a diminished value claim in California if you are at fault.
Myth: The insurance company is on your side.
Reality: Insurance companies are business-focused and may not offer the full compensation that you deserve.
Before making a diminished value claim in Montana, you first need to know a few things about it.
You can not file a diminished value claim yourself; only the at-fault driver’s insurance company can do it for you. This means that you cannot use your insurance to recover diminished value unless your insurance covers third-party claims.
From the date of the accident, you have around 2 years to file a Montana diminished value claim, and missing this deadline will mean you lose the right to get compensation for the loss in value of your car.
You need to provide proof of loss. It can include vehicle repair records, pre- and post-accident appraisals, etc. Hiring an appraiser like ADR Claims can significantly help you in determining the accurate value of your vehicle.
The diminished value in Montana is estimated based on the car’s pre-accident value, its repair quality, and the severity of the damage.
There is no specific case law on diminished value claims in Montana; however, the Restatement of Torts, Second, § 928 offers a legal basis for recovering damages to chattels, including vehicles.
According to the Montana diminished value laws, it’s not possible to file a diminished value claim under your uninsured motorist coverage. Your claim should be followed up with the at-fault driver’s insurance company.
If you ask how to file a diminished value claim in Montana, the steps given below can help.
First of all, you should hire an expert appraiser to assess the diminished value of your vehicle. They will help you determine the exact loss in value and also assist you throughout the whole process.
For a diminished value in Montana, now, you need to collect all the necessary evidence, which will include photos of the car damage, the diminished value appraisal documents, repair estimates, etc.
After documenting everything, you need to send a demand letter with the appraisal document to the at-fault party’s insurance organization. After that, you need to follow the insurance company’s procedures to file a diminished value claim in Montana.
The company will likely use various formulas, like the 17c formula, and undervalue your vehicle. So, you should prepare yourself to deal with the insurance company for the Montana diminished value claim.
If negotiations with the insurance company are unsuccessful, you may need to consider legal action to get the complete diminished value of your car. In Montana, you can pursue a claim via the small claims court system for amounts up to $7,000.
Even though you know how to submit a diminished value claim, it is recommended to get professional help. Why so? It’s because the insurance company will likely undervalue your vehicle.
At ADR Claims, we simplify the whole process and help you get the best compensation possible. Our team of professionals will guide you through the whole process from start to finish. For a detailed consultation and assistance, call us today.
Our quick and simple appraisal process can help you recoup vehicle-related losses.
