Car Accident Diminished Value Claims in Colorado Springs
When a car accident happens, you’re probably focusing on things like medical bills, rental cars, and time missed from work on top of car repairs and costs. But even after repairs are complete, your vehicle may not regain its pre-accident value.
Buyers are reluctant to pay full market price for a car with an accident history, no matter how well it’s fixed. This financial loss is called diminished value, and you may have the right to recover it under Colorado law by filing a diminished value claim.
Timothy Bussey is an experienced Colorado Springs car accident lawyer at The Bussey Law Firm, P.C., where he helps clients protect their financial interests after an accident. We know how to hold insurers accountable for the full range of damages by seeking compensation that covers your vehicles damage, medical costs, and other expenses.
What Is a Diminished Value Claim?
A diminished value claim is a request for compensation based on the difference between your vehicle’s market value before the accident and its value after repairs. Even if the repairs are perfect, the history will be recorded on a vehicle history report, such as Carfax. This leads to a decreased resale value when you try to sell or trade in your car.
For example, suppose your car was worth $30,000 before the crash. After repairs, it may appraise at $25,000 simply because of its accident record. That $5,000 loss is the basis of a diminished value claim.
Diminished Value Claims in Colorado
Colorado law recognizes that accident victims must be made whole, which includes recovering the loss in market value. The legal standards are based on tort law and property damage principles: if another driver’s negligence caused the accident, their insurance company is obligated to compensate you not just for repairs, but also for diminished value.
Courts in Colorado have supported these claims when properly documented, establishing that diminished value is a legitimate form of property damage. The key is meeting the evidentiary requirements: proving the pre-accident value, post-repair value, and that the difference is directly attributable to the accident.
When Insurers Refuse to Pay
One of the most frustrating aspects of diminished value claims is an insurers refusal to pay. In their effort to save money, insurance companies will often:
- Argue that repairs fully restored the car’s value.
- Apply outdated or unfair valuation methods to minimize losses.
- Deny claims outright, hoping the vehicle owner will give up.
Without experienced legal representation, many drivers accept settlements that don’t reflect their true losses. But your attorney can challenge the insurance company using evidence, expert opinions, and aggressive advocacy.
Valuation Methods for Diminished Value
Calculating diminished value requires careful analysis. Common valuation methods include:
- Before-and-After Appraisal: Establishes the fair market value pre-accident compared to post-repair.
- Comparable Sales Analysis: Reviews sales of similar vehicles with accident histories to determine how much value was lost.
- 17c Formula: Frequently used by insurers, this formula applies a percentage-based calculation to reduce the claim. However, it often underestimates losses and is not universally accepted by courts.
The most effective approach involves using a professional appraiser who relies on industry-standard methods and market data. An attorney can ensure that your appraisal meets the evidentiary threshold for admissibility in negotiations or court.
Evidence You Need to Support Your Claim
To build a strong diminished value case, you’ll need comprehensive documentation, such as:
- Pre-accident market valuations from trusted sources.
- Repair invoices and records showing the extent of damage.
- Photographs of damage before and after repairs.
- Vehicle history reports documenting the accident.
- Professional appraisals based on accepted valuation methods.
The more detailed your evidence, the harder it is for an insurer to deny your claim. Our firm assists clients in gathering and organizing this information to present a compelling case.
Steps to Take After an Accident to Protect Your Claim
If you suspect diminished value may apply to your situation, you should:
- Document the accident and repairs: Keep photos, invoices, and estimates.
- Obtain a professional appraisal: Don’t rely on the insurer’s valuation alone.
- Get a vehicle history report: This establishes that the accident is now on record.
- Consult an attorney early: Legal guidance ensures that deadlines are met and your evidence is positioned effectively.
- File your diminished value claim promptly: Don’t delay; insurers will exploit procrastination.
Common Myths About Diminished Value
- “Only luxury vehicles lose value.” False. Any car can suffer diminished value.
- “Perfect repairs erase diminished value.” False. Accident history is permanent and flagged on reports.
- “The claim isn’t worth it.” False. Depending on the vehicle, diminished value may total thousands of dollars.
Reasons to Choose Our Firm
Finding the right car accident lawyer significantly increases your chances of getting full compensation for all the damages you’ve suffered in an automobile crash. The Bussey Law Firm, P.C. is a Martindale-Hubbell Client Champion Gold award winner and Expertise.com named us the Best Car Accident Lawyers in Colorado Springs.
We offer our clients:
- Decades of legal experience: We understand both Colorado law and insurer tactics.
- Access to experts: We collaborate with trusted appraisers and valuation specialists.
- Aggressive advocacy: We push back against insurer refusal and lowball settlements.
- Proven results: We’ve helped countless Colorado Springs residents recover damages that insurers initially denied.
Our reputation is built on dedication, precision, and a relentless pursuit of justice for our clients.
Protecting Your Vehicle’s True Value
Car accidents can leave more than physical damage behind. Even after repairs, your car’s value may be permanently reduced, costing you thousands at resale or trade-in. A diminished value claim gives you the legal right to recover those losses, but only if you act quickly, gather strong evidence, and push back against insurer resistance.
Don’t settle for less than you deserve. At The Bussey Law Firm, P.C., we know how to hold insurers accountable and protect your financial interests.
Speak With an Experienced Car Accident Lawyer in Colorado Springs
If your car has suffered decreased resale value after an auto accident, you may be entitled to compensation. Don’t let an insurance company’s tactics leave you shortchanged.
Call (719) 475-2555 for a free consultation today.
