At Atlanta Metro Law, we are dedicated personal injury attorneys serving the Atlanta area. Our focus is on helping clients recover the compensation they deserve after car accidents and other personal injuries. We offer aggressive representation with a commitment to personal attention, ensuring that each client receives the support they need throughout the legal process.
If your car has been in an accident, even after repairs, it may be worth less than it was before the crash. This loss in value is called diminished value, and in Georgia, you may have the right to recover that loss from the at-fault driver’s insurance company. Many car owners are unaware they can file a diminished value claim or are unsure how the process works.
In this blog, we explain how diminished value claims work in Georgia, outline the steps to file a claim, and show how working with an experienced Atlanta car accident attorney can help you recover the full value your vehicle lost after an accident.
Understanding Diminished Value
Diminished value is the reduction in a vehicle’s market value after it has been damaged in a car accident and repaired. In Georgia, this loss can be recovered if another driver is at fault.
What Is Diminished Value?
Diminished value is the difference between your vehicle’s pre-accident value and its value after repairs. Even if the car is fully repaired, the fact that it was in an accident lowers what buyers are willing to pay. Most insurance companies do not automatically pay diminished value unless you file a specific claim.
Types of Diminished Value
There are three types: inherent, repair-related, and immediate. Inherent diminished value is the most common and refers to loss based on accident history alone. Repair-related happens when the repairs are poor. Immediate diminished value is the loss in value right after the accident before repairs are made.
How Diminished Value Affects You
Diminished value affects your ability to sell or trade in your vehicle for a fair price. Even if repairs are done well, a vehicle with an accident history is seen as less reliable or less valuable. This loss in resale value becomes real when you try to sell or refinance.
Diminished Value in Georgia Law
Georgia law allows car owners to claim diminished value from the at-fault driver’s insurance company. This is part of the property damage claim under O.C.G.A. § 33-4-7. You typically cannot recover diminished value from your own insurer unless your policy includes special coverage.
The Legal Basis for Diminished Value Claims in Georgia
Georgia law supports the right of vehicle owners to seek compensation for diminished value after a car accident caused by another driver.
Georgia Recognizes Diminished Value
Georgia is one of the few states where the law requires insurance companies to pay for diminished value. If another driver is at fault, their insurance company must cover not only repair costs but also the vehicle’s loss in value. This right applies even if the car is fully repaired and working properly.
Statutory Support in Georgia Law
Under law, insurance carriers are required to pay for all property damage resulting from a crash. This includes both the physical repair costs and the vehicle’s diminished value. Many insurance companies avoid mentioning this obligation unless the vehicle owner knows to ask for it.
Filing Against the At-Fault Driver’s Insurance
To recover diminished value, you must file a claim with the at-fault driver’s insurance company. Filing with your own insurance company usually does not result in a diminished value payout unless you have special coverage. Accident victims are entitled to pursue compensation based on the loss in market value of their repaired vehicle.
Time Limits and Documentation
Georgia allows up to four years to file a diminished value claim, but it is best to act soon after repairs. Insurance claims must include clear documentation, such as a professional appraisal, repair records, and the vehicle’s pre-accident value. Accurate records help support your claim and can increase your chances of a fair settlement.
How to File a Diminished Value Claim in Georgia
Filing a diminished value claim in Georgia requires the right steps and documentation to support the loss in your vehicle’s market value after a car accident.
Start With an Accurate Appraisal
Begin by getting an independent appraisal to estimate the diminished value of your vehicle. This report should include your car’s pre-accident value, the extent of the damage, and its current market value after repairs. An accurate appraisal is one of the most important parts of a strong diminished value claim.
File With the At-Fault Driver’s Insurance Company
Submit your diminished value claim to the insurance company of the at-fault driver. Include the appraisal, repair invoice, accident report, photos of the damage, and any other supporting documents. You are asking the insurer to pay the difference between your vehicle’s pre-accident value and its repaired value.
Be Ready to Negotiate
Many insurance companies offer low diminished value payouts or deny the claim. You may need to challenge their offer with additional evidence or negotiate for a fair amount. Insurance carriers often use the 17c formula to reduce the payout, which may not reflect the true market loss of your vehicle.
Get Help From a Car Accident Lawyer
If your claim is denied or undervalued, speak with a car accident lawyer. A lawyer can deal directly with the insurance company, submit evidence, and pursue compensation that reflects your vehicle’s real diminished value. Atlanta Metro Law offers a free consultation to review your case and help you decide your next steps.
When to Hire a Car Accident Lawyer
Hiring a car accident lawyer can make a major difference in the outcome of your diminished value claim, especially when insurance companies try to reduce or deny payment.
Your Diminished Value Claim Was Denied or Underpaid
Insurance companies often reject diminished value claims or offer low settlements that do not reflect the real loss. If your claim has been denied or the payout does not match your vehicle’s loss in market value, it is time to speak with a car accident attorney. A lawyer can review the details, gather the right documentation, and push for a proper diminished value payout.
The Insurance Company Is Disputing Fault
If there is a dispute about who caused the accident, the insurance company may delay or avoid paying your claim. Proving fault is a key part of recovering diminished value in Georgia. An experienced attorney knows how to handle accident reports, witness statements, and other evidence to support your position and pursue compensation from the at-fault party.
You Are Also Filing an Injury Claim
If you were hurt in the accident, you may be filing a personal injury claim along with your property damage claim. These cases often involve larger settlements and more complex legal steps. A car accident lawyer can manage both claims, protect your rights, and help recover damages for both your injuries and your vehicle’s loss in value.
The Claims Process Is Delayed or Confusing
The insurance claims process can be slow, technical, and full of unclear rules. Many car owners miss out on compensation because they do not know how to file a diminished value claim or how to respond to the insurance company’s offers. A lawyer can take over communication with the insurer, meet all deadlines, and present your claim clearly and effectively.
How Atlanta Metro Law Can Help
At Atlanta Metro Law, our car accident attorneys have the experience and focus to help clients across Georgia recover fair compensation after a crash. We understand Georgia diminished value law and know how to deal with insurance companies that delay or underpay claims. Whether your case involves property damage, injury, or both, we are ready to protect your rights and fight for a fair result.
Contact an Experienced Atlanta Car Accident Lawyer Today!
If your vehicle has lost value after a car accident, you may be entitled to more than just the cost of repairs. A diminished value claim can help you recover the difference between your car’s pre-accident value and its current market value. At Atlanta Metro Law, our team of experienced Atlanta car accident attorneys understands how insurance companies work and what it takes to build a strong claim.
Contact us at 864-894-2045 for a free claim review today!
