How to Make a Diminished Value Car Insurance Claim

If you’ve ever been in an accident, you already know how expensive repairs can be. What you might not be aware of, however, is the continuing effect your fender bender can have on the value of your car. There is a way to recoup some of that loss before you apply for financing and the experts at Green Light Auto Credit can show you how.

What is a Diminished Value Car Insurance Claim?

If your car has been reported damaged in an accident, it can result in a significant reduction in its value, as much as 75 percent in some cases. Even if the repairs are perfect. This can mean a huge loss particularly if your vehicle is new. To help offset this loss most states allow drivers to file a diminished car insurance claim against the other party’s insurance – provided that you are not the one at fault.

How Should You Prepare Before Making One?

If you’re still making payments on your vehicle or find that your value has decreased significantly it may be worth it to you to file a claim. There are a few things you will need to do to first:

• Prepare a Before Snapshot. Provide documentation showing the pre-loss value of your vehicle to demonstrate what it would be worth had it not been involved in an accident.
• Demonstrate the Loss. Have the vehicle appraised after repairs are complete, showing the difference in the vehicle’s current value.
• Show Fault. Almost no insurance carrier will pay a diminished value claim if you are the party at fault. Be prepared to demonstrate that the other driver was the cause of the accident.

Even with all of this documentation, it’s still likely to be a fight, so be prepared to be your own advocate and know your rights.
Answers to Car Insurance Questions

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When you’re ready to get behind the wheel of a new or used car, come see the expert credit counselors at Green Light Auto Credit. We’ll lead you through the process from start to finish and help you find the lowest rates on auto financing regardless of your past credit history.

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Contact Green Light Auto Credit at (800) 200-5551 for the most competitive new and used car rates in St. Louis, MO, Herculaneum, MO, and Florissant, MO.

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