Nevada Diminished Value Claims

If you were involved in a minor car accident in Nevada, your insurance policy might reimburse you for the damage, but the value of your vehicle can still diminish. Even when a car is restored to its original condition, an accident can still put a dent in its resale value. Fortunately, insurance companies in Nevada permit diminished value claims. 

What is a Diminished Value Claim?

Diminished value is defined as the loss of a vehicle’s value after it has been repaired due to an accident or defect. Even the best body shop in the world can’t repair a vehicle back to its original factory condition. If you are involved in a car accident, you have the right to file a diminished value claim if you believe that a purchaser will not pay as much for your car that has been repaired as they would for a similar vehicle that has not been repaired. 

Nevada uses a fault-based car insurance law to determine liability for a collision. If you did not cause the accident, the at-fault party’s insurance company is responsible for your diminished value claim. On the other hand, if you caused the crash, you may be able to seek compensation for the diminished resale value of your vehicle from your own insurance provider. However, your insurer will more than likely only cover the repairs necessary to restore your vehicle, as diminished value claims are only paid in very limited circumstances. 

Types of Diminished Value Claims

There are several types of diminished value claims: 

• Immediate Diminished Value: This claim refers to the difference in the resale value of your vehicle immediately before the accident and after, prior to being repaired. As insurance policies tend to cover most damage repairs, this type of loss rarely plays a role in diminished value cases. 
• Inherent Diminished Value: Even if repairs restore a damaged car to perfect condition, it may have a diminished resale value due to its accident history. Buyers will believe the vehicle is less valuable because of past repairs. 
• Repair-Related Diminished Value: Low-quality repairs can have a drastic impact on the resale value of a car. For instance, if the paint job is restored using a color that isn’t an exact match or parts are replaced with cheaper components. 

The most common type of claim is for inherent diminished value, which you may be entitled to if the value of your vehicle is less than it was before the accident, even after receiving quality repairs to restore your vehicle. 

Negotiating a Diminished Value Claim

Your ability to recover fair compensation for a diminished value claim will heavily depend on the negotiations with the at-fault party’s insurance company. Insurance adjusters often use tactics to undervalue or deny diminished value claims. Their first settlement offer will likely be lower than your claim’s worth. Before accepting, speak to a Las Vegas car accident attorney so they can evaluate your case and advise you on how much compensation you are entitled to.