How Insurance Companies try to get around paying you for Diminished Value after an accident
So we recently received an inquiry about a potential diminished value case from a client. They had recently been in an accident with an older truck – a 2014 Ford F150 SVT Raptor, and once repaired by the insurance company they decided it was time for a new truck. So they sold their original truck and moved up to a new one.
So far, all is good.
They sent us an email inquiring if they were still eligible for a diminished value claim, since they no longer owned the truck. We answered: ‘yes, as long as the statute of limitations has not expired; you’re still able to claim diminished value’. They just had to prove they suffered a loss of value when they sold the truck, which is pretty easy with WreckCheck’s help. (You can find the different statute of limitations for each state in another blog post).
Don’t cash that Check…
However this is where the good news ended for them. In the same email they went on to say that the insurance company had sent them a check for a paltry sum of money (less than 1/10 their actual diminished value according to Wreckcheck). They had already deposited in their bank account. They went on to ask if this had any bearing on their potential diminished value claim.
We unfortunately, had to tell that yes, it did have a bearing. In fact, if you deposit the check from the insurance company then you have accepted their offer for your Diminished Value and you have waived your right to pursue the remainder of the Diminished Value. It does not matter if you signed a release or not, the check has been cashed.
Cashing the check shows you agree to their terms, and you forfeit any potential further diminished value claims.
Beware Insurance companies bearing gifts, is an apt statement in this case. This isn’t the first time, we’ve seen an insurance company give an extremely low ball check to a client for their diminished value claim, hoping they’ll accept the offer and cash the check.
Been a Wreck, get a Check
So the moral of this story is, use WreckCheck.com to calculate your diminished value before you accept any checks from the insurance company and especially don’t cash that check until it’s the full amount of value you lost in the accident.
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Want to get started on your Diminished Value Claim – it’s easy, give it try here