BMW DIMINISHED VALUE CLAIMS

Asserting a Diminished Value Claim for BMWs in Virginia

If your vehicle has been damaged in a car accident Virginia, even if your BMW is repaired to its pre-accident condition, you may have suffered a loss called "diminished value." This is reflected in the reduced market value of the vehicle because it has been in an accident. The value of a luxury brand like BMW is often particularly sensitive to any history of damage, as prospective buyers and dealerships will factor in the car’s accident history when determining its resale value.

In Virginia, asserting a diminished value claim can be a complex process, but it is one that you do not have to navigate alone. Blaszkow Legal is one of the only law firms in the Commonwealth to handle these claims. Call an experienced diminished value attorney today, and let us fight for you. Call Blaszkow Legal today for a free consultation and guidance on the diminished value process!

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

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

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Understanding Diminished Value

"Diminished value" refers to the difference between a vehicle’s market value before an accident and its value after repairs have been completed. Even when a car is repaired to a high standard, buyers generally perceive it as less desirable because it has a history of damage - this is doubly true in higher-end, or calls referred to as "luxury vehicles." Diminished value can be divided into three categories:

• Immediate diminished value: This occurs right after the accident but before the vehicle is repaired.

• Inherent diminished value: This is the loss in market value that remains even after the vehicle is repaired to its pre-accident condition. It’s the most common type of diminished value claimed in Virginia.

• Repair-related diminished value: This type of loss occurs when the repairs themselves are of substandard quality, leaving visible imperfections or functional problems that reduce the vehicle’s value.

For high-end cars like BMWs, inherent diminished value is often the most significant, because these vehicles are typically purchased for their high performance, luxury appeal, and status. Buyers in the luxury vehicle market are particularly sensitive to accident histories, even when repairs are done perfectly. A diminished value claim is the sum total of all the elements, above.

Virginia’s Laws on Diminished Value Claims

Virginia allows vehicle owners to seek compensation for diminished value as part of a property damage claim, following a car accident. However, before asserting the claim, you have to prove that the at-fault driver was negligent. Virginia follows the rules of contributory negligence, which is sometimes called the "1% rule." If you (the claimant) is even 1% responsible for the happening of the underlying crash, then you cannot recover as a matter of law.

Diminished Value is specifically recognized in Virginia law, in Va. Code 46.2-1600. Under Virginia law, the at-fault party's insurance is typically responsible for covering the damages, including both the cost of repairs and any diminished value. However, asserting a diminished value claim requires you to demonstrate that your BMW has indeed suffered a reduction in value due to the accident.

Some key elements of Virginia’s approach to diminished value claims include:

• At-fault liability: Virginia follows a fault-based system when it comes to car accidents. The at-fault driver (or their insurance company) is responsible for the damages. If the accident was caused by another party, you can file a diminished value claim against that party’s insurance.

• Contributory negligence: Virginia adheres to a contributory negligence rule, meaning that if you are even slightly at fault for the accident, you may be barred from recovering any damages, including diminished value. Therefore, it is crucial that the accident is entirely the fault of another driver.

• Time limit: In Virginia, there is a five-year statute of limitations from the date of the accident to file a diminished value claim, as part of a property damage claim. This statute of limitations means it is important to act quickly, even though you do have some time to evaluate your options. However, if you were injured, the time limit to file a claim is only two years from the date of the crash.

Calculating Diminished Value for BMWs

Calculating diminished value for a luxury vehicle like a BMW can be more challenging than for standard vehicles, as factors such as the car’s condition, model, age, and mileage play a significant role. Luxury brands tend to lose more value after an accident compared to non-luxury vehicles, simply because their resale value is more sensitive to any negative history.

There are a few common methods used to estimate diminished value:

• Insurance company formulas: Some insurance companies use specific formulae that calculate diminished value based on the age and mileage of the vehicle. However, insurance company valuations are almost always done based off of pictures alone, and undervalue all vehicles.

• Appraisal from a professional: Getting an independent appraisal from an independent professional diminished value expert is the best way to establish the amount of diminished value your BMW has suffered. These experts will consider factors such as the severity of the accident, the quality of repairs, and the current market for BMWs with accident histories.
  WARNING - do not get a report online! The insurance companies do not value these reports. You need to get an in-person, local appraisal!

• Comparative sales: Another way to determine diminished value is to look at sales data for similar BMWs with and without accident histories. This approach provides a real-world view of how much less your vehicle may sell for due to its accident history.

Steps to Asserting a Diminished Value Claim for Your BMW

Successfully asserting a diminished value claim for your BMW in Virginia requires careful documentation and persistence. Here’s a step-by-step guide to help you through the process:

1. Ensure that your vehicle is repaired: After the accident, have your vehicle repaired. You cannot assert, or even evaluate, a diminished value claim if the BMW at issue has not yet been fixed.

2. Confirm that the repairs are complete: Drive your BMW around for a week, and make sure that there are no residual problems, like handling or steering, that need attention. Before evaluating for diminished value, we have to ensure that the repairs are final.

3. Hire a diminished value appraiser: Given that BMWs are high-value vehicles, it’s worth investing in an appraisal from a professional who specializes in diminished value. They can provide a report that will help quantify the loss in value due to the accident, giving you a stronger position when negotiating with the insurance company. You want to have an in-person, local appraisal done. DO NOT use an online system that pumps out a report after AI software looks at some pictures!

4. Contact a Diminished Value Lawyer: Once you have the diminished value report that the appraiser has completed, you should call a diminished value attorney. An attorney can review the case, and determine that there is sufficient evidence to proceed on. This ensures that the insurance companies don't take advantage of you - which they will, if you are unrepresented.

Challenges You May Face

There are several challenges you may face when asserting a diminished value claim for a BMW in Virginia:

• Insurance company resistance: Insurance companies may attempt to undervalue or outright deny diminished value claims, particularly for high-end vehicles. They may argue that your BMW has not lost as much value as your appraisal suggests or that the repairs were sufficient to restore its pre-accident value.

• Need for expert testimony: In some cases, you may need to provide expert testimony from an appraiser or vehicle market analyst to prove your claim. This can increase the cost of pursuing your claim, although it can be essential to winning a fair settlement. This is one of the primary reasons not to use an online-only report, because even if the appraiser is legit, it may be cost prohibitive to fly him or her across the country to your trial.

• Contributory negligence: If the insurance company can prove that you were even slightly at fault for the accident, they may deny your claim altogether. Virginia’s strict contributory negligence rule makes it critical to establish that the other driver was 100% at fault. This is for both property damage claims like diminished value, and injury claims.

Conclusion

Asserting a diminished value claim for a BMW in Virginia can be a complicated process, but is necessary to ensure that you recover all of your damages after a car accident. Given the high resale value and market sensitivity of luxury vehicles, diminished value can represent a significant loss, even after repairs have been made. Understanding the legal framework, documenting your case carefully, and hiring a professional appraiser are essential steps to successfully asserting your claim. By taking these steps, you can protect your financial interests and ensure that you are fully compensated for the accident’s impact on your BMW’s value.