Traffic accidents are, unfortunately, a fact of life. They not only cause financial damage but can also reduce the market value of a vehicle. This is where diminished value lawsuits come into play.

What is Impairment?

Diminished value is the situation where a vehicle, even if repaired after an accident, fails to reach its pre-accident market value. This occurs particularly when damaged vehicles are valued at a lower price by buyers on the used car market.

What is a Loss of Value Case?

A diminished value lawsuit is a legal process in which a vehicle owner, whose vehicle has lost value as a result of an accident, seeks compensation from the at-fault party for this loss. This lawsuit seeks to determine and compensate the vehicle for the difference between its pre- and post-accident market value.

Conditions for Filing a Loss of Value Lawsuit:

• Fault Ratio: The party claiming loss of value must not be entirely at fault for the accident.

• Damage and Repair: The vehicle must have sustained damage as a result of the accident and this damage must have been repaired.

• Statute of Limitations: A loss of value lawsuit must be filed within a certain statute of limitations from the date of the accident.

How to Calculate Loss of Value?

Loss of value is calculated by expert appraisers, taking into account factors such as the vehicle's make, model, age, mileage, and damage history. Generally, the difference between the vehicle's pre- and post-accident market value is considered loss of value.