Did you recently get into a car accident? If you sell it now, how much will your car be worth? You might not know this, but one thing is certain: your car lost its original market value due to its accident. What if we say you can recover the lost market value of your vehicle? How so? The diminished value claim in North Carolina can help you with this.
When a car is involved in an accident, its market value decreases from the pre-accident market value of the vehicle. It remains unchanged even after the car is repaired to its original condition. The loss in the car’s market value after an accident is known as diminished value and diminution of value in North Carolina.
The diminished value claim in North Carolina is the right that allows you to recover the loss of market value of your car from the at-fault insurance company. It’s because North Carolina considers your car your personal property.
We describe the 3 types of diminished value in North Carolina.
The difference of your vehicle’s market value after the accident and before its repair is the immediate diminished value. Suppose your car is worth $47,000, and after an accident, its value immediately decreases to $45,000. If your car’s value was $47,000 before the accident and is $45,000, the immediate diminished value of the vehicle is $2,000.
It’s one of the most common types of inherent diminished value and is the difference in your car’s market value before its accident and after its repair. If your car is worth $47,000 after an accident and you get it repaired to its original condition, the market value of your car might reach $46,000. $47,000-$46,000; $1,000 is the market value of your car.
Repair-related diminished value is the further decrease in your car’s market value due to substandard repairs. Assume your car is poorly repaired, and now its market value is $44,500, which was $45,000 before repair. So, $500 is the repair-related diminished value of your car.
N.C.P.I. - Civil 106.62 Property Damage (NC jury instruction). The amount you can recover from the at-fault insurance system is the difference between your property’s fair market value immediately before and after its damage.
Evidence, including estimates of the repair cost and the actual repair cost, can be used to determine the recovery amount.
DeLaney V. Henderson-Gilmer Co., 135 S.E. 791 (NC 1926). Evidence of the reasonable value of repairs to a damaged vehicle and the fair market value of the car as repaired can be shown.
You are eligible to file a claim and recover your car’s diminished value in North Carolina if you aren’t at fault for the accident, not even partially.
The steps on how to file a diminished value claim in North Carolina are as follows:
The first and most important step is to identify the at-fault party because you will file the insurance claim with their company. In North Carolina, you are not allowed to file a North Carolina diminished value claim if you are at fault.
Next, you need to get an appraisal clause from a professional appraiser, like ADR-Claims. This appraisal clause will help you negotiate a fair settlement when the insurance company tries to settle the claim with a lower payout.
You need to calculate the vehicle’s diminished value in North Carolina. Kelley Blue Book or NADA can help you determine the diminished value.
You need as much evidence as possible for the diminished value claim in NC. Car repair reports, the car’s history report, etc., will help you determine the diminished value of your vehicle.
After your calculation, it’s time to file your North Carolina diminished value claim. Don’t know how to claim diminished value in North Carolina? Your hired appraiser company will help you with it at every step of the way.
When the insurers evaluate your car’s market value, negotiate with them. They are business-centric and will try to avoid high payouts with excuses, such as the damage is minimal and won’t affect the vehicle’s market value or it is already repaired, so there is no need for payouts. But don’t settle too quickly; try to get your demanded payout.
If the negotiation fails, search for an attorney, possibly one specialized in diminished value claim cases. They will handle your case and help you get the demanded payout.
There are a few things you must consider when filing a diminished value claim in North Carolina.
North Carolina diminished value claim law says you have 3 years to file your claim from the date of the accident.
If you really want to file a claim, let the at-fault party’s insurance company know about it within 30 days of completing repairs.
In case your car’s repair cost exceeds 75% of its pre-accident value, the vehicle might be a total loss.
If the damage to a vehicle exceeds 25% of its market value, car owners must let buyers know about it.
ADR Claim is here to help you every step of the way with a diminished value claim. We evaluate your car’s market value based on different factors, such as your car’s condition before its accident, the severity of damage, market demand, car model, etc. We provide you with a detailed appraisal clause, which helps you properly negotiate with the insurance company for a fair settlement. Contact us for a free quote right now and book an appointment.
Our quick and simple appraisal process can help you recoup vehicle-related losses.
