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Posted in Car Accidents on June 25, 2019
After a collision, the value of a car reduces below what it was originally worth. Even after repairing the vehicle, the fact that it was involved in a collision at all lowers its market value if the owner wanted to sell it. The state of Louisiana recognizes this diminished value associated with cars that have been in accidents and entitles car owners to receive the difference in this lowered value via compensation.
Three instances qualify a vehicle for diminished value:
Louisiana honors diminished value claims, but only within a specific timeframe following an accident. A statute of limitations establishes time restraints on various legal processes. In Louisiana, the court allows for no more than one year to pass between the date of the car accident and the claim’s filing date.
Insurance companies handle diminished value claims. They are responsible for approving or denying claims based on the details and evidence of each case. Insurance companies are more likely to approve a diminished value claim in accidents that you are not at fault for causing. In Louisiana, your case needs to meet several criteria to be considered a valid case:
Diminished value claims are additional claims that you can file for after pursuing other modes of compensation to address the damage itself. These claims are not meant to repair your vehicle, but to address the lost value associated with the accident.
Because every car and car-accident situation is different, no set average for what the final compensation figure should come out to be exists. However, the following factors always play in significant role in determining your compensation:
Insurance companies do not give out compensation without thorough evidence and reasoning. An experienced New Orleans accident attorney will help you collect the necessary evidence and calculate a proper diminished value settlement. Oftentimes, insurance companies have their own formulas for calculating this figure, but they are not always fair. Consult an attorney to ensure that you are receiving fair, research-backed compensation to account for the diminished value of your vehicle.
File a diminished value claim to recover the difference in your car’s value after a collision. Though you can file without additional help, consulting an attorney will ensure that your compensation accurately reflects the reduced value that your car suffered from the accident.