If you’ve been in a car accident, even after repairs, your vehicle may not be worth what it was before the crash. This loss in market value is called diminished value, and in Washington State, you may be entitled to compensation for this loss. Understanding how diminished value claims work and how to file one can help you recover what you’re owed. For more help, contact our Lakewood car accident lawyers at (833) 832-2727 to schedule your free consultation.

What Is a Diminished Value Claim?

Diminished value refers to the reduction in a vehicle’s worth after an accident, even if it has been fully repaired. Buyers often prefer vehicles with no accident history, and even high-quality repairs won’t restore the vehicle’s market value to its pre-accident status. A diminished value claim allows you to seek compensation for this loss from the at-fault party’s insurance company.

There are three main types of diminished value:

• Immediate Diminished Value: The reduction in value immediately after the accident, before any repairs are made.
• Inherent Diminished Value: The most common type, which accounts for the loss of market value due to an accident history, despite quality repairs.
• Repair-Related Diminished Value: When improper or substandard repairs lower the car’s value.

Is Washington a Diminished Value State?

Yes, Washington recognizes diminished value claims. The state follows a comparative negligence rule, meaning if another driver was at fault for the accident, their insurance should compensate you for your diminished vehicle value. However, your compensation might be reduced accordingly if you were partially at fault.

When Can You File a Diminished Value Claim in Washington?

To be eligible for a diminished value claim in Washington, certain conditions must be met:

• You were not at fault (or only partially at fault) in the accident.
• The at-fault party has insurance coverage.
• Your vehicle sustained significant damage that required repairs.
• Your car is relatively new or in good condition (typically less than 10 years old and well-maintained).
• Your vehicle has a clear title (not salvaged or rebuilt).

If you meet these criteria, you may have a valid claim and should act quickly, as Washington has a statute of limitations of three years for filing diminished value claims.

How to File a Diminished Value Claim in Washington

1. Obtain a Vehicle History Report: Insurance companies will consider the vehicle’s pre-accident condition, mileage, and accident history.
2. Get a Professional Diminished Value Appraisal: Hiring an appraiser can accurately estimate how much your vehicle’s value has dropped.
3. File a Claim with the At-Fault Driver’s Insurance: Submit the appraisal, repair records, and any other supporting documentation.
4. Negotiate with the Insurance Company: Insurers often attempt to minimize payouts. Be prepared to negotiate and push for fair compensation.
5. Consider Legal Assistance: If negotiations stall, consulting with a Lakewood injury attorney may help you secure the compensation you deserve.

How Much Is My Diminished Value Claim Worth?

The amount you can claim depends on factors such as:

• The pre-accident market value of your car.
• The extent of damage sustained.
• The mileage and overall condition of the vehicle.
• Whether the car has had previous accidents.

Many insurers use a formula known as the 17c Formula, but this often underestimates actual diminished value. This is why getting an independent appraisal is crucial.

Don’t Miss Out on Your Rightful Compensation

Diminished value claims can be complex, and insurance companies often resist paying full compensation. If you’ve been in an accident in Washington and believe your car has lost value, you don’t have to navigate the process alone. Contact us today at (833) 832-2727 or complete our online form to schedule a free consultation and ensure you receive the compensation you deserve.