A Step-by-Step Guide to Filing a Diminished Value Claim in Alabama

In most cases, a car that has been damaged in an accident loses its resale value, regardless of the extent of the repairs. But Alabama law allows car owners to recover this loss through a diminished value claim if someone else was responsible for the car accident.

A car accident attorney from Stokes Stemle, LLC in Montgomery, AL, can help you file an Alabama diminished value claim and seek compensation through the at-fault party’s insurance company if the accident was not your fault.

An auto accident lawyer from our legal team can handle the paperwork and navigate the legal process to recover the loss of car value you have suffered after an accident in Montgomery or elsewhere in the Tri-Counties area of Central Alabama. We’ll fight to get you the money you deserve. Call us today or reach out online to speak with a car accident lawyer about filing a diminished value auto accident claim in Alabama.

What Is a Diminished Value Claim & Who Can File?

Like most states, Alabama has recognized the diminished value claim as a distinct remedy for losses suffered due to vehicle property damage in a car accident.

In King Motor Co. v. Wilson, 612 So. 2d 1153 (Ala.1992), the Supreme Court of Alabama established the legal fact that a damaged automobile is worth less than an automobile that has never been damaged. In Coffee County Comm’n v. Smith, 480 So.2d 1194 (Ala.1985), the Court found that the proper measure of damages (compensation paid to an injured party) is the difference in the value of the property before and after the damage.

Additionally, Moebes, 709 So.2d 477,478 (Ala.1997) established that compensatory damages are designed to make the plaintiff financially whole by reimbursing them for the loss or harm suffered.

Therefore, a vehicle owner in Alabama may pursue a diminished value claim to recover compensatory damages for the loss in value that their vehicle has suffered in an accident that another party has caused. Such a “third-party” claim may be filed against the insurance company that has provided auto liability insurance to the driver who was at fault for the accident.

The Step-by-Step Process to File a Diminished Value Claim in Alabama

A diminished value claim seeks compensation for the actual reduced value of a motor vehicle after a car accident. Therefore, your claim must demonstrate fault for the accident and the loss of value. To file a diminished value claim in Alabama, you must:

• Get a copy of your accident report. The report that police file after a car accident identifies the drivers involved in the accident and provides a basic description of what happened. If a driver was arrested or received a ticket, it will note that. Purchase a copy of the accident report online here or in person at any ALEA Driver License Office.

• Request a diminished value appraisal. To determine the value of your loss, you’ll need an assessment of your vehicle immediately after the car accident. This should be done by an experienced and certified independent auto appraiser, not with a formula or an online calculator, or the insurance company may reject it.

• Submit your claim to the at-fault driver’s insurer. The police report will identify the other driver’s insurance company. Call or consult its website to determine what they require when filing a claim. If you speak to an insurance adjustor, tell them you are filing a diminished value claim against one of their insured drivers. Follow their instructions, but be careful not to say anything that may indicate you were at fault for the accident.

• Respond to the insurer’s settlement offer. After receiving your diminished value claim, the insurance company may pay it as submitted, offer less than you have demanded, or deny the claim. In most cases, an insurance company will offer a settlement that is for less than the figure cited in your claim. At this point, you can accept the settlement offer or negotiate for more. Negotiating will require some sort of leverage, such as a second appraisal for a greater loss than the insurer’s offer. If the insurer denies your claim, they should explain why, and you may be able to submit evidence to reverse this decision and then deal with their settlement offer.

• Consult an attorney if your claim is denied or underpaid. An experienced car accident attorney can help you recover full compensation for the loss of value in your car after an accident through a diminished value claim. At Stokes Stemle, LLC in Montgomery, we can help you obtain an independent appraisal of your vehicle to determine and document its value in Alabama. We can make sure an appraisal of your vehicle considers any upgraded after-market parts, custom paint, or other factors that made it worth more prior to the accident.

Once we have determined what’s necessary to make you financially whole, our car accident attorneys will send the at-fault driver’s insurance carrier a demand letter explaining the diminished value damages you are due, along with the evidence supporting your claim. We can handle all the work required to document and file a diminished value claim in Alabama, and we know how to negotiate with insurance companies to fight for the compensation you are entitled to. If necessary, we will file a lawsuit on your behalf and present a strong case to the court, requesting that it order payment to you.

Contact Our Alabama Car Accident Attorneys for Help

Alabama has established your right to submit a diminished value claim and recover losses you have suffered through vehicle damage in a car accident someone else has caused. But to recover damages that make you financially whole, you will need the help that an experienced Alabama car accident attorney can provide.

Let Stokes Stemle, LLC, gather evidence to support your claim and fight to get you the fair diminished value compensation you are owed. Contact our Montgomery office today for a free legal consultation about how we can help you pursue a diminished value claim and seek the full compensation owed to you.