Dimimished Value Claims

What is Diminution of Value Claims?

Diminished Value or D.V. is the amount of loss a vehicle incurs because it was involved in a car accident. DV can be defined as the difference in the value of a vehicle just prior to an accident and the value after it has been repaired.

Vehicles lose their deprecation of value because the vehicle was involved in a collision, which makes them damaged and less desirable. The car might have future mechanical issues or its appearance might be altered due to the accident.

We work to create value in our client’s claims by bringing in experts to testify in their DV cases. It creates tremendous value in their cases rather than just settling out of the courtroom. We pursue these DV claims from the claim process all the way into the courtroom (litigation).

There are two types of diminished value claims:

First-Party Diminished Value Claims

First-party claims are made by the vehicle owner or who holds the policy against his/her own insurance company to recover the difference in the value of the vehicle before the collision and the value of the vehicle after the damage caused by the collision had been repaired. This sort of claim is typically governed by contract law and the terms of the insurance policy. When a vehicle is damaged, a policyholder generally expects to compensate entirely per value by its first-party property insurer, but an insurer is legally responsible only to pay according to the policy terms.

Third-Party Diminished Value Claims

These are claims made by the owner of a vehicle against a third-party tortfeasor (person other than the insured and insurer) for negligently causing damage to the owner’s vehicle. This type of claim is governed by tort law.

How does diminished value work in Texas?

When operating a motor vehicle on public roads in Texas, drivers are required to carry a minimum of $25,000 in property damage coverage. If you exceed the $25,000 limit, you may be able to seek compensation for diminished value via your own underinsured/uninsured motorist coverage.

A policyholder may assert that the market value of the automobile after the complete repair is lower than the market value before the damage. The policyholder then claims that the insurer is required to pay the difference in market value, known as diminished value.

Personal injury claims in Texas, including those for diminished vehicle value after an accident, must be filed within two years; otherwise, you risk having your claim dismissed due to the statute of limitations.

Diminished Value Claim Houston

Diminished value claims are a legal recourse for car owners who have experienced a loss in their vehicle’s market value due to an accident or other incident. For Houston residents, this type of claim can be especially beneficial, as the city is home to some of the most competitive used car markets in the country.

When filing a diminished value claim in Houston, it is important to understand that all motor vehicles are subject to such losses, regardless of make and model. This means that your vehicle could suffer from an immediate or gradual loss in its worth following any sort of incident on the road. As such, it’s essential to have your vehicle inspected by an expert who can accurately assess its current market value and measure any potential losses you may have suffered.

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