Diminished Value Claims: Virginia
It only takes a moment for your drive around Virginia to turn into a dangerous automobile accident. After knowing everyone in this accident is safe, the other concern on your mind will be your automobile.
Even after it receives top-notch repairs, an automobile that was in an accident is less valuable than one with an accident-free history.
Fortunately, you can recover diminished value in Virginia when you take the right steps. Get started by receiving a free estimate from DVCHECK.
Summary – Diminished Value Claim in Virginia
Statute of Limitations: 5 years from the date of loss.
Third-Party Diminished Value Claim: Yes.
First-Party Claims for Diminished Value: No, most insurance policies will exclude diminished value.
Property Damage Minimum Limits: $20,000 in coverage
Uninsured Motorist Coverage for Diminished (UMPD) Value: Yes. $20,000 in required UMPD coverage with a $200 deductible. That includes hit-and-run driver coverage.
Underinsured Motorist Coverage for Diminished Value: Yes.
Virginia Small Claims Court Limit: $5,000, attorney representation is not allowed. Appeals are permitted.
Virginia Diminished Value Law
Virginia code 46.2-1600 defines diminished value compensation: as the amount of compensation that an insurance company pays to a third-party vehicle owner, in addition to the cost of repairs, for the reduced value of a vehicle due to damage.
Virginia also has well-established case law supporting diminished value for third-party vehicle owners who were not at fault in the accident.
Averett v. Shircliff, 218 Va. 202,206-207,237 S.E.2d 92 (1977) states the following: “Where the automobile is damaged but not completely destroyed the measure of damages is basically the difference between market value at the time of the injury and market value after the injury,
which, where the injury is susceptible of repairs, is ordinarily measured by the cost of reasonable repairs necessary to restore the automobile to its original condition together with the diminution in value of the injured property after repairs are made.”
How to File a Diminished Value Claim in Virginia
Step 1. Obtain proof of your car's diminished value.
An ideal way to submit an excellent claim is by having help from qualified and experienced vehicle appraisal professionals. Turning in a high-quality and detailed appraisal helps improve your chances of an insurance company accepting your submission and subsequently giving you a payout worthy of what you deserve.
Step 2. Submit your documentation (diminished value appraisal) and demand letter for review.
The ideal time to turn in your claim-related documents is immediately after having your automobile repaired. What if that's not possible? Don't fret. Aim to submit your information as soon as possible. You’ll file this claim with the at-fault driver’s insurance carrier.
But what if the driver who caused your crash was underinsured or had no insurance at the time of this accident? If so, your insurance policy may offer coverage that allows you to recoup your car’s diminished value according to Virginia law.
Step 3. Settle your claim.
One of the responsibilities of a claims adjuster is to negotiate and make the lowest possible payments from their employer’s (aka an insurance company’s) budget. Once they receive your claim, someone in this role has three options:
- Accept and pay out your claim.
- Negotiate a lower claim amount.
- Deny your claim altogether.
To receive the highest settlement, submit as much supporting documentation as possible and haggle until the adjuster stops negotiating.
If you have any questions, please call us at (850) 201-1950 or complete a free estimate form to get further assistance with your Virginia diminished value claim.
When you need help with your appraisal, contact DVCHECK.
