Following a car accident, it is important to prioritize your health and well-being. However, it is crucial also to consider the full extent of your losses, which may include a hidden one: the diminished value of your car.
In Massachusetts, a landmark ruling by the Supreme Judicial Court in McGilloway v. Safety Insurance Company in 2021 has established that you may be eligible for compensation for the decrease in your car's market value due to an accident, even after repairs have been completed. This concept, diminished value or inherent diminished value (IDV), acknowledges the negative perception of a car involved in an accident, making it more challenging to sell at its pre-accident price.
According to a comprehensive study conducted in 2015 by the esteemed Carfax Valuation Service, it was discovered that vehicles with even the slightest record of accidents tend to fetch prices that are 10-20% lower compared to their counterparts which have no such history. In cases involving more severe accidents, the decline in value can be significantly steeper, plummeting to a staggering 40% or even more. This alarming trend is not isolated, as within the state of Massachusetts alone, numerous drivers fall victim to this phenomenon every year, inadvertently forfeiting substantial sums of money, potentially reaching tens of thousands of dollars, without being aware of the financial implications.
Understanding Your Rights
The McGilloway decision established that IDV claims are recoverable under the property damage coverage of most Massachusetts auto insurance policies. However, navigating the intricacies of this legal realm can be tricky. Here's a concise overview of what you need to know:
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Burden of Proof: You, the claimant, are responsible for proving your car's value has diminished and quantifying the amount of IDV.
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Evidence: This can include pre-accident and post-accident appraisals, repair estimates, comparable sales data, and expert testimony.
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Negotiation: Insurance companies often dispute IDV claims or offer lowball settlements. Having a seasoned attorney on your side can ensure fair and proper compensation.
Why Consider Seeking Legal Help for Your IDV Claim
Consider seeking legal assistance for your IDV claim. The process is complex and time-consuming, and understanding the specific evidence requirements can be overwhelming without legal knowledge. Insurance companies have experienced legal teams working against you, making negotiating and securing fair compensation difficult. Seeking legal help can alleviate stress and allow you to focus on recovery. Brooks & Crowley's car accident lawyer, Neil P. Crowley, has a proven track record and will handle the complexities of the legal process, maximizing your chances of success.
Brooks & Crowley can help you assess and pursue compensation for the diminished value of your vehicle after a car accident. We will support you through the process to ensure you receive the full financial recovery you deserve.