Can I Make A Diminished Value Claim?

Not every person involved in a automobile accident can make a diminished value claim. Even if you can, it may or may not be worth the time and expense.

If you are involved in an automobile collision that was not your fault you may have a diminished value claim. Exceptions to this are if you have already signed a release, i.e. a legal document releasing the responsible party from further claims. Another exception is if the collision occurred too long ago.  What I mean by too long will vary from state to state, but basically, a claim for damages has a statute of limitations.  This means that every state has a set time period in which you have to bring all claims and file suit if they are not resolved within this time frame.  In Maryland, for example, the statute of limitations is 3 years.  In Maryland, therefore, you must conclude the claim within three years from the date of the collision or you must put the claim in suit.

Keep in mind that if you were injured in an accident that was not your fault, you should seriously consider hiring a personal injury lawyer.

To summarize, you can make a diminished value claim if:

a) You were not at fault **
b) You have not signed a release
c) The collision did not happen before the statue of limitations has run.

**What if you were at fault? Can you make a claim against your own carrier under your collision coverage? The answer is maybe not.  Many policies are written to exclude first party diminished value claims (claims against your policy of insurance). If your policy does not contain this exclusion then a diminished value claim may be available. You should check the language of your policy to see if it excludes diminished value claims. Additionally some states may have specific rules regarding first party claims for diminished value.  You can always ask your insurance company if you can make a first party claim for diminished value, but I would not stop there is the answer is no.  You should check with your State Insurance Commissioner to see if you insurance company is telling you the truth.

If you have any questions regarding first party claims it is also advisable to speak with a personal injury attorney in your area. Most good lawyers will discuss the merits of a claim with you for no fee unless you choose to have them represent you

For more information, specific to Maryland, but helpfull in general, see www.marylanddiminishedvalue.com.  More general information regarding property damage claims can be seen on www.marylandpropertydamage.com.