AUDI DIMINISHED VALUE CLAIMS

Audi Diminished Value Claims After Car Accidents

In Virginia, as in many other states, vehicle owners may be entitled to file a diminished value claim following a car accident. A diminished value claim seeks compensation for the loss of your Audi's inherent value, after it has been repaired. Even when a vehicle, such as an Audi, has been meticulously restored to its pre-accident condition, its resale value may be reduced because it now has a history of damage. This difference (between pre-accident and post-accident value) is your diminished value.

In this comprehensive guide, we will examine the procedures for filing diminished value claims for Audi vehicles in Virginia, the legal framework surrounding these claims, and practical steps you as an Audi owners can take to maximize your compensation. Additionally, we will explore factors that influence the amount of compensation and discuss common challenges faced during the claims process.

You should always speak to an Audi Diminished Value Attorney after a car accident, to protect and understand your rights. Call Blaszkow Legal today for a free diminished value consultation: 703-879-5910

Understanding Diminished Value

"Diminished value" refers to the loss in market value of a vehicle after it has been involved in a car accident or other incident, and subsequently repaired. Despite being restored to a condition that is as good as, or close to, pre-accident status, the vehicle’s resale value is almost always lower because potential buyers may perceive the vehicle as less reliable or attractive due to its accident history. Diminished value can occur even in cases where repairs are flawless, as buyers are often wary of cars with damage history listed in reports like Carfax.

There are three components to total diminished value:

1. Immediate Diminished Value: This occurs immediately after the accident but before the vehicle has been repaired. It represents the difference in the car's value in its damaged state and the pre-accident value.

2. Repair-Related Diminished Value: This arises from substandard or incomplete repairs. Poor-quality repairs can further reduce the car’s value, even if the damage itself could have been more thoroughly fixed.

3. Inherent Diminished Value: This is the most common type and refers to the decrease in market value due to the vehicle’s accident history. Inherent diminished value accounts for the stigma associated with cars that have been in accidents, regardless of the quality of the repairs.

Legal Framework for Diminished Value Claims in Virginia

In Virginia, diminished value claims are recognized under state law. This means that if your Audi is involved in an accident and someone else is at fault, you may be entitled to compensation for the diminished value of your vehicle - this claim is totally separate from the cost of repairs.

However, you must remember that Virginia (just like Maryland and Washington, DC) follows a tort liability system, which means that the at-fault driver is responsible for compensating the non-at-fault driver for their losses. These losses can include medical expenses, property damage, lost wages, and diminished value. The claim for diminished value is typically made against through the at-fault driver's car insurance.

In the jurisdictions of the DMV this is a bit more complicated that it first appears, because of the laws of contributory negligence. This means that you (the claimant, or person bringing the claim) cannot be even 1% responsible for the happening of the crash. The insurance companies love this (called "contrib") because they can deny so many claims - because so many people talk to insurance companies without the benefit of legal counsel!

How to Filing a Diminished Value Claim for Your Audi in Virginia

1. Report the Accident Immediately

After your Audi is involved in an accident, you should report it to the police. Especially in the cases of non-injury accidents, the police will often decline to respond. But the call logs the exact time and date and location, and ensures that you have the relevant information: the name and address of the at-fault driver, the at-fault driver's car make and model, etc. You also need to contact the relevant insurance companies as soon as possible. This includes both your insurer and the at-fault party’s insurer if you intend to file a third-party claim. When filing a claim, provide all necessary details about the accident, including police reports, witness statements, and photographs of the damage.
HOWEVER - call an attorney first! Remember, anything you say can and will be used against you by the insurance companies! We can give you the appropriate guidance to ensure you do not give them the ammo to deny your claim.

2. Get Your Audi Repaired

To file a diminished value claim, the repairs to your vehicle must be completed first. You’ll need documentation that the vehicle was restored to its pre-accident condition or as close as possible. Make sure you use a reputable repair shop to avoid repair-related diminished value issues.

The repair shop will provide you with an estimate and an itemized list of the repairs made to your Audi. This is important evidence when negotiating the diminished value amount. It is also advisable to save all receipts and documents related to the repairs, as these will be necessary for your claim.

3. Determine the Diminished Value of Your Audi

Once your vehicle has been repaired, the next step is to assess the diminished value. This can be done in several ways:

• Online Diminished Value Calculators: Several websites offer tools to estimate the diminished value of your vehicle. ***WE NEVER RECOMMEND GETTING AN ONLINE-ONLY APPRAISAL!!!!!***

• Hire a Diminished Value Appraiser: Hiring a professional appraiser who specializes in diminished value claims will provide a more accurate estimate. The appraiser will assess the condition of your Audi before and after the accident, taking into account factors like the extent of the damage, the quality of the repairs, the mileage, and the age of the vehicle. They will then provide a detailed report that you will need to present a demand to the insurance company.

In Virginia, the amount of compensation you can claim for diminished value is influenced by factors such as:

• The age and condition of the Audi before the accident

• The mileage of the vehicle

• The severity of the damage and quality of repairs

• The Audi model (luxury cars like Audi tend to suffer more from diminished value claims due to the premium nature of the brand)

4. Submit Your Diminished Value Claim to the Insurance Company

After you have gathered all the necessary documentation, including the repair invoice and diminished value appraisal, you can submit your claim to the at-fault party’s insurance company. Be prepared to provide evidence that supports your claim, including:

• The pre-accident market value of your Audi

• The post-accident market value, as assessed by an appraiser

• Repair invoices and any related documents

When submitting the claim, clearly outline the total amount of diminished value you are seeking and be prepared to negotiate. Insurance companies often attempt to minimize payouts for diminished value claims, and it may take time and persistence to reach an agreement.

5. Negotiate with the Insurance Adjuster

Once the insurance company has reviewed your claim, they may make a counteroffer. In most cases, the initial offer from the insurance adjuster will be lower than the amount you are seeking. This is a normal part of the negotiation process, and you should not feel obligated to accept the first offer.

Use the evidence you have collected to justify your claim and continue negotiating. If you have hired a diminished value appraiser, their report can be especially valuable during this phase of the process.

6. Consider Legal Action if Necessary

If the insurance company refuses to offer a fair settlement or denies your claim altogether, you may need to take legal action. In Virginia, you have the option of filing a lawsuit to recover the diminished value of your vehicle. However, lawsuits can be time-consuming and expensive, so this should be considered a last resort.

Before filing a lawsuit, it is advisable to consult with a personal injury or property damage attorney who has experience with diminished value claims. An attorney can advise you on the likelihood of success and represent you during negotiations or in court if necessary.

In order to ensure that you are not taken advantage of, you should call an attorney after the vehicle is repaired at the absolute latest, before doing anything else. The longer you wait, the harder your diminished value claim could become.

Challenges and Pitfalls in Filing Diminished Value Claims

Filing a diminished value claim can be challenging, particularly when dealing with insurance companies that are reluctant to pay out on such claims. Some of the most common challenges include:

• Insurance Policy Exclusions: Many insurance policies contain exclusions for diminished value claims, particularly for first-party claims. It is important to carefully review your policy to determine if diminished value is covered.

• Difficulty Proving Diminished Value: Insurance companies may dispute the amount of diminished value or argue that your vehicle has not lost value despite its accident history. This is why hiring a professional appraiser can be critical to substantiating your claim.

• Time Limits: Virginia law sets time limits (statutes of limitations) for filing diminished value claims. For most property damage claims, including diminished value claims, the statute of limitations in Virginia is five years. However, it is always advisable to file the claim as soon as possible.

• Lowball Settlement Offers: Insurance companies often make low settlement offers in an attempt to resolve the claim quickly and for as little money as possible. It is important to negotiate and stand firm to ensure that you receive fair compensation.

Conclusion

If your Audi has been damaged in an accident in Virginia, you may be entitled to file a diminished value claim to recover the loss in market value. While the process can be challenging, following the correct procedures—such as obtaining a professional appraisal and negotiating with the insurance company—can help you secure fair compensation. Understanding the legal framework in Virginia and being aware of potential challenges will better equip you to navigate the diminished value claims process effectively.

Call an experienced Audi Diminished Value Claim lawyer to discuss your case, and see how we can help you fight the insurance companies, and win!

Get Justice with Joe and call 703-879-5910 for a free consultation!

Alexandria/Northern Virginia Office:
5270 Shawnee Road #102, Alexandria, Va. 22312
703-879-5910

Richmond Office:
7824 Shrader Road, Richmond, Va. 23294
804-273-8929

Hablamos Espanol!