What Are Diminished Value Claims in Georgia
Diminished value claims in Georgia allow you to recover money for the loss in your car’s value after an accident. Even when repairs are completed, your car may still be worth less than it was before the crash. This happens because the accident history appears in vehicle reports, making the car less attractive to buyers.
Most people do not realize how much value can be lost just from an accident being recorded. Even with perfect repairs, your car could lose thousands of dollars in resale or trade-in value. If the accident was not your fault, Georgia law gives you the right to file a diminished value claim and seek compensation from the at-fault driver’s insurance company.
Georgia Law Supports Diminished Value Recovery
Georgia is one of the most consumer-friendly states when it comes to diminished value claims. A Georgia Supreme Court case, State Farm v. Mabry, established that insurance companies must account for diminished value when evaluating property damage claims. This applies to third-party claims when another driver is responsible for the crash.
This makes Georgia different from many other states, where insurance companies routinely deny or ignore these claims. If your car has been in an accident and someone else was at fault, you are legally allowed to recover the amount your car has lost in value.
To learn more about your rights and how the state protects consumers, visit the Georgia Office of Commissioner of Insurance and Safety Fire.
How to File Diminished Value Claims in Georgia
Filing a diminished value claim in Georgia is not complicated, but it does require the right documentation. Start by gathering your accident report, repair invoices, and photos of the damage before and after repairs.
Next, get an independent appraisal that estimates how much value your vehicle lost as a result of the accident. This appraisal compares your car’s pre-accident value to its post-repair value.
Once you have all your documents, write a demand letter and submit it to the at-fault driver’s insurance company. This letter should include a summary of your case, copies of all supporting records, and the exact dollar amount you are requesting.
Under Georgia law, you have four years from the date of the accident to file a diminished value claim. However, starting early is recommended to make the process smoother and avoid lost paperwork or stale information.
Why Insurance Companies Undervalue These Claims
Many diminished value claims in Georgia are either rejected or severely undervalued. This happens because insurance companies use automated systems that calculate loss based on outdated or inaccurate formulas. These tools often overlook key market conditions, your car’s mileage, or its resale potential.
If the insurance company offers less than what your appraisal shows, you do not have to accept their offer. You have the right to negotiate, submit additional proof, or get help from a professional who can advocate for a fair amount.
Insurance companies know that most people are not familiar with diminished value claims. That is why having the right paperwork and professional support is so important.
Need Help With a Diminished Value Claim in Georgia
If you are unsure how to start or feel overwhelmed, you are not alone. Most drivers in Georgia have never filed a diminished value claim before. That is where we come in.
At GeorgiaInjury.org, we work with people across the state who have been in accidents and want to recover the full value of their vehicle. We can help you understand your rights, gather the documents you need, and refer you to trusted appraisers who specialize in these types of claims.
Whether your vehicle is brand new or a few years old, it may still qualify. Do not leave money on the table. Contact us today and let us help you take the next step.
