How Do I File a Diminished Value Claim in Texas?

If your car has been in an accident in Texas, even after professional repairs, it may still lose market value simply because of its accident history. This loss is called diminished value.

Filing a diminished value claim in Texas can help you recover the financial difference between your car’s pre-accident and post-repair value. 

How to File a Diminished Value Claim in Texas? - Step-by-Step Process

Here’s a step-by-step guide on how to do it correctly.

1. Confirm Who Was at Fault

The first step is to confirm that the other driver caused the accident. Texas follows a comparative negligence rule, which means you can only claim diminished value if you were less than 51 percent responsible. 

It is also important to verify that the at-fault driver’s insurance policy includes property damage liability coverage before moving forward.

2. Your Vehicle and Keep All Records

After the accident, take your vehicle to a trusted repair shop for professional repairs. Make sure to keep all documents such as invoices, estimates, and parts lists. 

These records prove the quality of the repairs and serve as evidence when calculating how much value your car lost because of the damage.

3. Get a Professional Diminished Value Appraisal

The next step is to get a professional diminished value appraisal. This report determines how much your car’s market value has dropped after the accident. 

It’s best to use a certified and experienced appraiser. A service like My Fair Claim specializes in Texas diminished value assessments and provides accurate, data-backed reports that insurance companies recognize and respect.

4. Gather All Supporting Documents

To build a strong case, collect all relevant evidence. This includes the police accident report, photos of your car before and after the crash, detailed repair receipts, a vehicle history report from services like Carfax, and the professional diminished value appraisal. 

Together, these documents help establish the extent of your vehicle’s loss in value and support your claim effectively.

5. Send a Diminished Value Demand Letter

Once you have all your documentation, send a demand letter to the at-fault driver’s insurance company. 

The letter should include details about the accident, your vehicle information, such as make, model, year, and VIN, your total repair costs, the diminished value appraisal, and the amount you are requesting as compensation. 

Keep the tone polite and professional, and always save copies of all communication for your records.

6. Negotiate with the Insurance Company

Insurance companies often try to offer lower settlements or question the validity of your appraisal. Be prepared to negotiate confidently. 

Present your evidence and explain how the appraisal reflects your car’s true market loss. If possible, refer to recent sales of similar vehicles in Texas to justify your claim. 

If negotiations become difficult or stressful, you can allow your appraiser or an expert to handle communication with the adjuster on your behalf.

7. Get Expert or Legal Help If Needed

If your claim is denied or delayed, you can seek help from a diminished value expert or an attorney who specializes in auto insurance claims. 

A professional can guide you through the next steps and ensure you get the compensation you deserve under Texas law.

Understand Texas Diminished Value Laws

Texas law recognizes inherent diminished value, which means your car loses value simply because it has an accident history, even if it has been perfectly repaired. To file a valid claim, you must be able to prove that the other driver was at fault.

Texas also has a two-year statute of limitations for filing diminished value claims, starting from the date of the accident. The amount you can recover depends on several factors, such as the age, mileage, and pre-accident condition of your vehicle.

It’s also important to remember that diminished value claims generally cannot be made under your own collision policy unless the at-fault driver was uninsured and you have the proper uninsured motorist coverage.

How Much Can You Expect to Recover?

The amount of compensation you can recover depends on your car’s pre-accident value, the severity of the damage, the quality of the repairs, the vehicle’s mileage and age, and current Texas market conditions.

A professional diminished value appraisal gives you an accurate estimate of your car’s lost value and helps you negotiate a fair settlement with the insurance company.

Why Choose My Fair Claim while Filing a Diminished Value Claim in Texas?

Filing a diminished value claim in Texas can be a time-consuming and confusing process, especially when dealing with insurance adjusters. 

My Fair Claim simplifies the process by:

• Providing accurate, data-driven appraisals accepted by insurers

• Helping you draft and submit your demand letter

• Supporting you during claim negotiations

• Ensuring you receive maximum fair compensation for your vehicle’s lost value

If you’ve been in an accident in the past two years, you may still qualify for compensation. Don’t leave money unclaimed.

Contact My Fair Claim today for a professional evaluation.

Key Takeaways

Filing a diminished value claim in Texas is your right if another driver caused your car’s loss in value. 

With proper documentation, expert appraisal, and persistence, you can successfully recover the amount you deserve.

Remember, the longer you wait, the harder it becomes to prove your claim.