NEW CAR DIMINISHED VALUE CLAIMS

What is a Diminished Value Claim for a New Car?

It's new and shiny, and it's yours! What could do wrong? Well, sadly, everything. Your car can be damaged through no fault of your own: most often, new cars are damaged in car accidents that are not the owner's fault, and this leads to a serious financial loss (aside from any injuries that you have sustained!).

When you new car is damaged in a motor vehicle collision that was not your fault, or the negligence of another person or motorist, then your car has lost some of its intrinsic value. This drop in value is called "Diminished Value," and you can assert a claim for it!

Blaszkow Legal is one of the only law firms in the DMV that has the expertise to handle these Diminished Value Claims for new car owners. If your car has been damaged in a car accident or other incident that was not your fault, then call the Diminished Value Claims Lawyers at Blaszkow Legal, serving VA, MD, and DC!

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

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What is a Diminished Value Claim in Virginia?

Diminished value (sometimes called "diminution") is based on a mathematical equation:

(Pre-accident value) - (Post-repair value) = Diminished Value

Example: You have a brand new Toyota Rav4 that you just bought, and you paid 39,000.
But after someone rear-ended you at a stop light, after all repairs were completed,
it was now worth 28,000. So:

$39,000 - $28,000 = $11,000 in diminished value

This amount, the difference in the two numbers, is what your claim is for. In Virginia, a diminished value claim is recognized by Virginia Code 46.2 - 1600. Diminished Value Claims are also recognized in DC and Maryland.

How Do You Determine Diminished Value For Your New Car?

Diminished value is a concept recognized by the law, and is designed to compensate you for the loss you have suffered. Generally, this is referred to as the loss of resale value. After all, a vehicle that has been in an accident automatically has some stigma along with it, when another person wants to buy it. Imagine you were going to a used car lot and two identical hybrids, at the same price, were sitting side by side, but one had been in an accident. Which would you buy?

Diminished Value has to be proven, not just claimed. This is done through a Certified Diminished Value Appraisal. A proper diminished value appraisal is done by an independent appraiser, in person - not just by pictures. Also, in order for an appraisal to be truly on-point, it has to compute the value on local data-sets, not national averages. After all, what a car is worth in Alexandria is not the same as it would be worth in Denver, or Beverly Hills.

As we discuss below, DO NOT get an online DV report!!!

How a New Car Diminished Value Claim is Pursued in Virginia

Blaszkow Legal has created a streamlined, condensed and simple process for reviewing, evaluating, and prosecuting our clients diminished value claims:

1. Call Blaszkow Legal. We will discuss the case, and determine if there is enough information to move forward. We will give you guidance on where to go to get everything started, if needed.

2. Obtain a diminished value appraisal report. A comprehensive diminished value appraisal will review actuarial data, and will help to determine exactly what the value is for the vehicle.
   - However, be warned: Do not get an online report! Most people that come to us get very frustrated because the online reports are generally not usable. Why? Because an appraiser who is sitting in front of a computer in Des Moines is going to be very expensive to bring to Fairfax County to testify! It becomes a matter of cost-benefit analysis, and the insurance companies know this! It is much better to get a local, in person appraiser that is also not going to be based on pictures!

3. We begin negotiations with the insurance company. After we have notified the insurance company of our representation, we send them a demand package, which sets out exactly what our position is, and what we expect to recover for our client. They will either negotiate in good faith, or we have to review whether or not we need to move to the next level.

4. Filing a lawsuit. If the at-fault car insurance company does not wish to negotiate, or they do not wish to give you fair value for your claim, then we may have to file a lawsuit. At Blaszkow Legal, we are not afraid of the courtroom!

The Online Diminished Value Report - Why the Car Insurance Companies Ignore and De-Value Them

As we've said, many clients find that online appraisals they have gotten are de-valued or outright ignored by car insurance companies. There are a few reasons for this.

• Inapplicable data. Value of a vehicle is determined by its resale in its immediate area, not through nation-wide averages. Thus, most online appraisals use nationwide datasets that don't factor in local concerns, so the car insurance companies ignore them.

• The appraiser is not always certified, and the report isnt always done by an appraiser at all! With the growth of AI, we have seen online reports that were never touched by human hands, and thus there is no one to attest to the report's veracity, even if it used the right data!

• The appraiser is not local. While sometimes reports can be admitted into evidence via affidavit, the insurance companies know that most judges prefer to have someone there, in the courtroom, to testify. Thus, the insurance companies know that claimants who use online reports aren't going to think to bring their own appraiser, thus leaving the judge to review either a written report, or verbal testimony! In these instances, the insurance companies will bring their own appraiser, and can win the day.

• Online reports are done via pictures. Pictures are worth a thousand words, but can be incomplete, or present a slanted image to the viewer. The insurance companies know this! An appraisal that is done with pictures-only is not worth as much as one completed after a certified appraisal reviews the car, itself.

We always recommend an in-person diminished value appraisal!

Some Legal Pitfalls of Virginia Diminished Value Claims

As we said earlier, clients who get online reports are often at a disadvantage. When you consider, put yourself in the shoes of the judge who is going to look at the case. A report made by someone who only looked at pictures is going to be less impactful to you than the defense evaluation, which is often going to be done by a real, in person appraiser. The insurance companies do hundreds and thousands of these cases every week. They know that you are not going to pay to bring in an appraiser from across the country, so they bring their own appraiser to court!

Also, there is a cost benefit analysis that has to be done. You may have been in an accident that was not your fault, and you may have a diminished value claim! But sometimes, the amount of the diminished value claim may not be sufficient to get an attorney involved. However, you can always call us, and we can talk this through. If we can't help you, we can tell you exactly how to move forward on your own.

Another consideration - you have to be the owner of the car. If you were leasing the car, then it is not yours (more accurate, the car is not your property. You have use of it). The diminished value claim lies with the actual owner, not the user. The same is true if you and your husband bought the car. Just because you are driving it, if he is on the title (and not you), then the claim belongs to him (legally).

Contact a diminished value lawyer after the accident! There are many occasions when clients come to us and we find that they have waived their diminished value claim! This is because they have signed releases that have been far too broad, and have waived certain rights that they did not know they had. Always call an experienced car accident lawyer after you've been involved in a car accident that was not your fault!

Frequently Asked Questions About New Car Diminished Value Claims

Do I have a Diminished Value claim if my car was deemed a total loss?

No.  If your vehicle was declared a total loss after the accident, then you have already been compensated for the value of that vehicle. You cannot accept a total loss, and then attempt to file a diminished value claim, later on.

Do I have a Diminished Value Claim Even if I Was Not Injured?

Yes, you can! We handle diminished value claims, independent of injury claims, if the value of the case merits involving an attorney. Of course, we review every injury-car accident to see if there is a diminished value claim as well.
- NOTE - while there is a lower-threshhold of when it is cost effective to get an attorney involved for a DV-only claim, if we are working your injury case, then we will assert any DV claim.

Do I have a DV Claim if I was partially at fault?

Generally, no. All jurisdictions in the DMV practice the law of contributory negligence, meaning that a person who was at fault, even a little, cannot recover. We will investigate the facts of the crash when we are retained, but most people don't contact an attorney until later on in the process. This makes it more difficult for us to battle insurance companies that make that argument. Always call a lawyer immediately.

How does the Attorney get paid?

We work on a contingency-fee basis, which means that we only get paid if you collect money. There is no fee to speak to us about a Diminished Value Claim!

What kinds of cars have diminished value claims?

Most cars will have diminished value after an accident, but only a few have enough of a claim to justify getting an attorney involved:
- Newer vehicles, within the last 4-5 model years,
- Brand new vehicles (just purchased),
- Unique vehicles, such as TESLAs
- Hybrid/electric vehicles
- Antique, custom, or collectible vehicles

Contact a Virginia Diminished Value Lawyer Today!

If your new car was damaged and you were in no way responsible, you may have a diminished value claim after a car accident. Don't just complain about the loss that you have suffered - get justice for it! Blaszkow Legal is a team that can assess your claim, and help you fight for the compensation you deserve!

Get Justice with Joe Blaszkow, and call Blaszkow Legal today: 703-879-5910