Diminished Value and Loss of Use in Utah
Diminished Value Claims
Damages you may have suffered from a car accident include diminished value and loss of use. In addition to compensation for your physical and psychological injuries, you are entitled to compensation for the cost of repairing your vehicle and the difference between the value of your car before the accident and what it is now worth after the repair.
Diminished value refers to the loss in the economic market value of your vehicle after it has been wrecked and repaired by the repair shop. Even where the repairs were done to standard, and you cannot visually detect that there have been repairs, there is still a loss in value. Any prospective buyer will pay less for the vehicle once they know it has been in an accident.
If you sell a vehicle, you are required to disclose its whole accident history, so the vehicle loses value. Therefore, cars involved in prior accidents are less valuable, so they aren’t worth as much as they would have been before the accident.
Loss of use refers to the damages you suffered as you could not use your damaged vehicle while it was being repaired and had to hire another car to get around. You are entitled to damages equivalent to the cost you now incurred.
The way to claim these losses is by filing a diminished car value claim against the other party or your insurance company. If successful, this will result in compensation for your loss.
If you think you may have a valid insurance claim, consider calling an experienced personal injury lawyer. They can assist you in valuing your chances of success and can guide you in the right direction. So what have you got to lose? Call us today for a free consultation!
Is Utah a Diminished Value State?
Utah is a diminished value state. However, you need to ensure that you launch your claim within three years from the date of the accident, or you will be prevented from doing so by the statute of limitations.
Uninsured motorist coverage does not cover diminished value claims. In addition, you cannot file a diminished value claim in Utah if you were the at-fault party or if the damage was caused by something other than a collision.
If the other driver caused the damage, their insurance company should compensate you for the diminished value and loss of use.
Contact a Utah-based car accident attorney to find out whether you have a valid diminished value and loss of use claim.
Types of Diminished Value Claims in Utah
There are three types of diminished value claims in Utah:
Inherent Diminished Value
The fact that the car has been in an accident reduces its value. The accident history reduced the value of the vehicle. This is commonly accepted as accurate.
Repair-Related Diminished Value
A vehicle that has not been fully repaired or has sub-standard repairs experiences what is called repair-related diminished value.
Immediate Diminished Value
Immediate diminished value refers to the difference in a vehicle’s resale value before the damage compared with the resale value immediately after the damage and before any repairs have been carried out.
How Do Insurance Companies Determine Diminished Value?
Insurance companies are, first and foremost, a business established to make a profit, regardless of how friendly the agents may be. Despite being contracted to pay your medical bills and for damages incurred in the accident, they will do their best to pay you as little as possible.
Consequently, don’t expect the insurance company to advise you about diminished value claims. Insurance companies are unlikely to inform you about diminished value claims as this would be detrimental.
In any case, you have a right to demand diminished value and loss of use and should insist on submitting a claim. If they reject this, you might need to see a lawyer. It is likely that they will take your claim more seriously if they know you are serious about it and have legal representation.
Car accident attorneys are well-versed in the tricks of the trade since they deal with insurance companies on a daily basis. As a result, attorneys are more capable of dealing with agents, compiling your case, and negotiating settlement offers with insurance companies than you are. As a result, they will likely be able to get you fair compensation, with diminished value and loss of use included.
How to File a Diminished Value Claim in Utah
Filing a diminished value claim involves a three-step process:
Prove Your Loss
Law requires that you prove anything you allege. Therefore, you will need to verify the loss you claim. The accident must have caused your vehicle’s value to decrease. Having an independent appraiser provide you with a loss appraisal is one way to prove this.
Submission of Proof of Loss to the Insurance Company
Once you have the proof of loss in hand, you need to submit it to the insurance company. Typically your diminished value appraisal report will be accompanied by a letter of demand for the value claimed.
When negotiating with the insurance company, you are best served by having an attorney represent you to make the claim more credible.
Claim Settlement by the Insurance Company
Now it’s up to the insurance company. A settlement offer will generally be made unless the company believes that your claim is unfounded. In the event that they accept the claim, they may pay the claimed sum in full or make a lower offer, which you may accept or reject.
An attorney’s value lies in their ability to negotiate and to know how much a claim is worth. Most lawyers negotiate with insurance companies until they reach a reasonable offer, which they present to their clients. In the event of a stalemate and no fair offer is made, it may be necessary to consider legal action.
Is it Necessary to Retain a Lawyer for a Diminished Value and Loss of Use Utah Claim?
Due to the small amounts claimed in diminished value claims, diminished value claims are most often heard in the small claims court. But an attorney can represent you.
Even though it is not required, a highly experienced, local personal injury lawyer can help you with your Utah diminished value claim.
The Accident Attorneys of America will fight for the full amount of damages you are entitled to receive. Typically, this includes the repair work on the vehicle, the value of the damaged property, and the costs associated with the body shop and accident-related expenses. It is important to file a claim so you can get back into the same situation you were in before the accident. Call now for your free claim review.
Frequently Asked Questions (FAQs)
Should I Still Get a Lawyer for an Accident That Was My Fault?
Yes, it would be best if you still got a lawyer. In addition to investigating the extent of your fault, an experienced truck accident lawyer will negotiate with your insurance company to resolve the claim.
What Is the Most Common Injury in a Truck Accident?
The most common injuries in a truck accident are spinal cord injuries, traumatic brain injuries, head and neck injuries, and broken bones.
A truck or even a semi-truck accident can cause fatal and life-long injuries. For your medical expenses to be adequately covered, ensure that you wait until the end of the anticipated recovery period before settling your truck accident case.