Don’t Accept What the Other Party’s Insurer Offers You
Kerr & Sheldon Diminished Value & Loss of Use Vehicle Recoveries
We successfully resolved the following clients’ Diminished Value (DV) & Loss of Use (LOU) cases for their luxury/exotic cars damaged in car accidents:
|2015 Ferrari 458 Italia
|2020 Ferrari 488 Pista 2D Coupe
|RLI Insurance Co.
|2015 Ferrari 458 Italia
|2020 Lamborghini Huracan (LOU)
|2014 Rolls Royce Wraith
|2017 Porsche Macan S
|2014 Lamborghini Aventador
|2018 McLaren 570 Spider
|2018 Mercedes AMG GT C
|2017 Porsche 911 Turbo S
* Settled Based on Policy Limits
Recovering Diminished Value and Loss of Use for Your Vehicle
Every car buyer understands a vehicle’s accident history can substantially reduce its value. Even if a car seems mechanically sound and cosmetically clean, the car’s accident history significantly decreases its market value. If your vehicle is damaged in a collision due to someone else’s negligence, you’re entitled to recover more than repair costs. You’re also entitled to recover for the ‘diminished value’ and ‘loss of use’ of your vehicle from being damaged and repaired.
Diminished Value is the difference between the market value of a car prior to a collision and its reduced value immediately after having been repaired. The idea is simple, given a choice between two vehicles, one that has been in a serious collision and another which has not, buyers will invariably choose the vehicle without a collision history. No matter how well a car has been repaired, it’s invariably worth less than before the collision.
Proving Diminished Value damages generally requires hiring an appraiser to determine a vehicle’s Fair Market Value before the accident and immediately after repairs have been completed. While the trend is slowly changing, you can expect insurance companies to aggressively deny diminished value damages, falsely claiming they’re not recoverable in California or a vehicle must first be sold to determine damages.
Loss of Use is also an important item of damages in California. Damages for loss of use are calculated by what a similar car to yours would rent for during the time reasonably necessary to repair or replace a vehicle following an accident.
Damages for Loss of Use can be significant. Most new, luxury or exotic cars are expensive to rent. Repairing these vehicles may take weeks or months to complete. It’s not unusual for a high-end vehicle to rent for $1,000 or more per day. If repairs take sixty days, the Loss of Use would be $60,000.
Were You Injured in Your Accident?
The team at Kerr & Sheldon Law are experienced in personal injuries and are ready to help you not only with your diminished vehicle value, but with any personal injury you might have sustained. If you’ve been in a car accident, the personal injury attorneys have over 40 years of experience to assist you with your case. Contact us today for further assistance.
Diminished Value Settlements
The legal team at Kerr & Sheldon have worked on previous cases for diminished values. The table provided below displays examples of cases that Kerr & Sheldon have worked on previously. Don’t let the value of your vehicle go to waste. Get the value you are owed with our help!
What is “Diminished Value”?
The accident history of a car involved in a collision significantly decreases its value and often presents safety issues. This decreased value is called “Diminished Value,” and occurs because most people won’t buy a vehicle that has been in an accident without a significant price discount. Diminished Value is the difference between the market value of a car prior to a collision and its reduced value following an accident and subsequent repair. At Kerr & Sheldon, we provide a free diminished value evaluation.
How is Diminished Value calculated?
If a vehicle has lost value due to an accident, the owner is entitled to (1) the difference between its value before the accident and its lesser value after repairs and (2) the reasonable cost of repairs. However, the total amount recovered cannot exceed the vehicle’s value before the accident occurred.
How do I prove how much my vehicle has lost in value?
If you’ve already sold your car, the decreased sales price is proof of the loss. If you still own the vehicle, it’s necessary to hire a reputable appraiser to assess the likely loss in value.