When your vehicle is involved in an accident, repairing the physical damage does not always restore it to its pre-accident market value. Even after high-quality repairs, a vehicle with a documented accident history may be worth less to prospective buyers, dealerships, and other market participants.
This loss in market value is commonly known as diminished value.
Texas Diminished Value Claims
Under Texas law, property-damage claims may include a loss in a vehicle’s market value when the evidence demonstrates that the vehicle is worth less after the accident and repairs than it was before the accident.
Depending on the circumstances, a vehicle owner may be entitled to pursue diminished value in addition to reasonable repair costs, so long as the damages do not result in an improper double recovery.
A diminished value claim can be particularly important when an accident becomes part of a vehicle’s documented history. Reports from services such as CARFAX may disclose a prior accident to prospective purchasers or dealerships. Even when a vehicle has been properly repaired and looks and drives as it did before the collision, its accident history may negatively affect its resale or trade-in value.
Pursuing a Diminished Value Claim
Our firm represents clients throughout Texas in pursuing diminished value claims arising from motor vehicle accidents. Every claim is different, and determining diminished value may require consideration of several factors, including:
- The vehicle’s year, make, model, mileage, and pre-accident condition;
- The nature and severity of the collision;
- The extent and quality of the repairs;
- Whether the accident appears on the vehicle’s history report;
- The vehicle’s pre-accident and post-repair market value; and
- Available appraisal and other valuation evidence.
We evaluate the circumstances of the loss and the available evidence to determine whether a diminished value claim can be supported and work with the responsible insurance company to pursue appropriate compensation on behalf of our clients.
How We Help
Insurance companies do not always agree that a vehicle has suffered diminished value—or they may dispute the amount of the loss. A successful claim may therefore require more than simply showing that the vehicle was involved in an accident.
Our firm works to develop evidence demonstrating how the accident affected the vehicle’s actual market value. We communicate with the insurance company, present supporting documentation, and advocate for a fair resolution of the property-damage claim.
Texas generally provides a two-year statute of limitations for property-damage lawsuits, although the applicable deadline can depend on the specific circumstances of the claim. Acting promptly can also help preserve evidence needed to establish the vehicle’s pre-accident and post-repair value.
Has Your Vehicle Lost Value After an Accident?
If your vehicle was damaged in an accident in Texas and is now worth less because of its accident history, you may have a diminished value claim—even if the vehicle has already been fully repaired.
Contact our office to discuss your diminished value claim and learn more about your legal options 800.648.2156.