Diminished Value Claims In Missouri: How Much Can You Get?

When your vehicle is involved in an accident, even if it's repaired to look as good as new, its market value often decreases. This loss in value is known as diminished value. In Missouri, you have the right to file a diminished value claim to recover this financial loss. This guide provides a detailed overview of diminished value claims in Missouri, including what they are, how to file them, and what to expect during the process.

What is Diminished Value?

Diminished value is the difference between the market value of your vehicle immediately before the accident and its value immediately after the accident and repairs. Even with a perfect repair job, a vehicle that has been in an accident is often worth less than an identical vehicle that hasn't been damaged. This is because potential buyers may be wary of purchasing a car with a history of damage, fearing future problems or hidden issues.

Types of Diminished Value Claims

In Missouri, there are two types of diminished value claims: first-party claims and third-party claims.

  1. First-Party Claims: These claims are filed with your own insurance company if you have comprehensive or collision coverage. However, most insurance policies in Missouri exclude coverage for diminished value in first-party claims. This means that if you make a claim under your own policy, your insurer is not required to pay for diminished value.

  2. Third-Party Claims: These claims are filed with the at-fault driver's insurance company. Missouri law allows accident victims to recover diminished value from the at-fault driver's insurance as part of the property damage claim. This is the most common way to seek compensation for diminished value in Missouri.

Statute of Limitations

In Missouri, you have five years from the date of the accident to file a diminished value claim. It's important to file your claim as soon as possible to ensure you don't miss the deadline.

How to File a Diminished Value Claim

Filing a diminished value claim in Missouri involves several steps:

  1. Obtain Proof of Diminished Value: The best way to prove your claim is to hire a licensed, independent appraiser who specializes in diminished value assessments. The appraiser will evaluate your vehicle and provide a detailed report on its diminished value.

  2. Submit Documentation: Once you have the appraisal, submit it along with a demand letter to the at-fault driver's insurance company. The demand letter should include details of the accident, the repair costs, and the diminished value assessment.

  3. Negotiate Settlement: The insurance company's claims adjuster will review your documentation and may offer a settlement. Be prepared to negotiate to ensure you receive fair compensation for the diminished value of your vehicle.

  4. Consider Legal Representation: If the insurance company disputes your claim or offers an unsatisfactory settlement, you may want to consult with an attorney who specializes in diminished value claims. An attorney can help you navigate the legal process and advocate on your behalf.

Legal Precedents and Case Law

Missouri courts have recognized the right to recover diminished value in several cases. For example, in the case of Rook v. John F. Oliver Trucking Co., the court allowed recovery for both the cost of repairs and the difference in market value before and after the accident. This precedent supports the idea that accident victims can seek compensation for diminished value in Missouri.

Betterment in Diminished Value Claims

In some cases, the insurance company may argue that the replacement parts used in the repair are of better quality than the original parts, a concept known as betterment. This can result in a lower settlement offer. It's important to be aware of this argument and be prepared to counter it with evidence that the repaired vehicle is still worth less than its pre-accident value.

Conclusion

Diminished value claims in Missouri provide a way for accident victims to recover the financial loss associated with the decreased market value of their vehicle. By understanding the process and seeking professional assistance when needed, you can ensure that you receive fair compensation for your loss. If you have any questions or need further assistance, consulting with an attorney experienced in diminished value claims can be a valuable resource.