Determining the Value of Your Car Accident Case
If you are well-informed about your rights, a vehicle accident doesn’t have to be a life-changing event. Knowing what compensation you are entitled to will help when it comes time to settle with the insurance companies.
There’s a lot to know when figuring out how much your car accident case is worth. With so many variables to consider, sometimes it helps to have a lawyer walk you through determining the value of your case. You’re going to want to know how to prove fault, the extent of your injuries, and your medical bills.
While that may seem pretty obvious, you should also be aware of things like whether or not the other driver has insurance or if they can afford an attorney.
Get an Evaluation From Your Company
There are several ways to find out the value of your claim. Many insurance companies in New York have the most popular method for diminishing values.
It is also essential to keep in mind that the insurance company will likely lowball you on the value of your claim. They may try to give you a check for much less than your car is worth, or they may try to get you to accept a lower repair estimate than what it would cost to repair your vehicle.
If this happens, you should contact an experienced car accident lawyer in Westbury, New York, who can help you negotiate with the insurance company and fight for the total value of your claim.
What Is Diminished Value?
Diminished value is the difference in your car’s value before and after the accident. The idea behind diminished value is that even if you get your vehicle repaired to its pre-accident condition, it will never be worth as much as before.
For example, you bought a brand-new car for $30,000. After driving it for a year, the car gets in an accident and needs $10,000 worth of repairs. The insurance company may give you a check for $10,000 to cover the cost of repairs, but your car is now only worth $27,000 because it has been in an accident.
The amount of money you lose due to diminished value is your car’s “loss in value.”
Types of Diminished Value?
There are three types of diminished value, and here is how they work:
Inherent Diminished Value
It’s the value your car loses immediately after an accident, regardless of whether or not it is repaired. Inherent diminished value is caused by the fact that your car now has a “history” of being in an accident. To calculate the car value using this method, you would take the pre-accident value of your car and subtract the post-repair value.
Repair-Related Diminished Value
It’s the value your car loses due to poor repairs. Even if your vehicle is repaired to its pre-accident condition, it will never be worth as much as it was before the accident because potential buyers will know it was in an accident and repaired.
To calculate the repair-related diminished value, you would take the pre-accident value of your car and subtract the post-repair value.
Diminished Market-Value
This is the value your car loses due to changes in the market since the time of your accident. For example, if a new model of your car comes out after your accident, the value of your vehicle will go down because it is now an older model.
To determine the market-value diminished value, you would take the pre-accident value of your car and subtract the post-repair value.
Determine How Long It Has Been Since the Car Accident
This is another consideration you should have in mind when determining the value of a car after an accident. If it has been less than a year, the car’s value would generally be higher than if it had been two or more years.
Many insurers use the multiplier method and the per diem methods to calculate the value of a car after a collision.
What Is the Multiplier Method?
The multiplier method calculates a car’s worth by multiplying the pre-accident value by any number between 0.5 and 1. The higher the value, the closer the number is to one.
For instance, if the car was worth $20,000 before the accident and you use a multiplier of 0.7, the value of your car would be $14,000.
What Is the Per Diem Method?
The per diem method is similar to the multiplier method in that it takes the pre-accident value of your car and multiplies it by a number. However, the per diem method uses a daily rate rather than a multiplier.
An example, if your vehicle value was $20,000 before the accident and you used a per diem rate of $30, the value of your car would be $600.
You can use either the multiplier method or the per diem method to calculate the value of your car. However, it is important to note that the insurance company will likely use the lower of the two values.
Gather and Present Evidence That Adds Value to Your Case
To prove the value of your case, you will need to provide evidence to the insurance company. This evidence can include:
• Photos of the damage to your vehicle
• Repair estimates
• Documentation of the pre-accident value of your car
• Documentation of the post-repair value of your car
• Documentation of any lost wages or other economic damages you have incurred as a result of the accident
• Documentation of any pain and suffering you have experienced as a result of the crash
• Expert testimony
An expert accident lawyer can assist you in gathering this information and constructing a compelling case for the highest possible settlement for your automobile accident claim.
Receiving Compensation After the Accident
After the valuation and all details of the process have been worked out, the company will give you a check for the car’s value. The insurance company may also offer to repair your vehicle, but it is essential to remember that they are not required to do so.
The value of your car accident claim will depend on several factors, including the accident’s severity, the pre-accident value of your car, the post-repair value of your vehicle, and the repair-related diminished value. An experienced car accident lawyer can help you gather evidence to prove the maximum value of your claim.
