Diminished Value (DV) claims are essential in the realm of property insurance, especially for car accident victims. These claims address the reduction in a vehicle’s market value after an accident, even after repairs. Understanding and pursuing DV claims can significantly benefit both attorneys and their clients.
Understanding Diminished Value Claims
Diminished value refers to the loss in a vehicle's market value post-accident despite being repaired. This concept is crucial for car accident victims as it ensures they receive fair compensation for their vehicle's depreciation.
How Diminished Value Works
Diminished value refers to the reduction in a vehicle's market value after it has been damaged in an accident and repaired. Even if fully restored, the vehicle's history of being involved in an accident can decrease its resale value. To claim diminished value, the vehicle owner typically gets an appraisal to assess the loss, then files a claim with the insurance company, providing evidence of the damage and repair. The insurer may offer a settlement, which can be negotiated or disputed if deemed insufficient.
Why Are DV Claims Valuable
Pursuing DV claims can increase the average case value by 30%, offering substantial financial benefits without any net cost to attorneys. Moreover, clients can enjoy quick monetary recovery, enhancing overall satisfaction.
Handling DV Claims vs. Repair Claims
There is a distinct difference between DV claims and repair claims. While repair claims focus on the physical restoration of a vehicle, DV claims address the market value loss. Law firms and their support staff play a pivotal role in managing these claims efficiently.
Is It Worth It?
Yes, pursuing DV claims is worth it. The process requires minimal effort but yields significant returns, averaging $2000 per case. This not only ensures immediate client satisfaction but also leads to positive reviews and potential for client retention.