Property Damage | The Law Offices of Cameron and Russell

The Hidden Cost of Diminished Value

Written by Brandon Herrera on October 30, 2023. Posted in Property Damage. No Comments on The Hidden Cost of Diminished Value

Visible damage tends to get the most attention when you’re the victim of an automobile accident. It’s easy to focus on the dents, scratches, and other destruction that requires a skilled automotive body technician to restore your vehicle to its pre-accident condition.

A property damage lawyer knows there’s a subtle yet significant factor that impacts the true value of your vehicle, even after repairs are made – diminished value.

This blog explores the hidden costs of diminished value, answering the following questions:

What is diminished value and why does it matter?
How is diminished value calculated?
What is the role of appraisers in determining diminished value?
How do you address diminished value in your property damage claim?
How does a property damage lawyer negotiate with insurance companies?

What is diminished value and why does it matter?

Diminished value refers to the reduction in the market value of a vehicle after an accident that requires significant repairs. Even if the restoration is meticulous and leaves the vehicle looking as good as new, the stigma associated with its accident history can cause a lower perceived value during resale or trade-in.

Here are 4 reasons why diminished value matters.

Market Perception
Potential buyers often hesitate to pay the same price for a vehicle that has been in an accident. Even if the repairs are expertly executed, there is a perceived loss in market attractiveness.
Resale Value
Diminished value directly impacts the resale value of your car or truck. When you decide to trade in or sell your vehicle, you’ll receive offers that are lower than expected once buyers see the CARFAX report detailing its accident history.
Insurance Compensation Discrepancy
Insurance companies compensate for the cost of repairs, but they don’t automatically account for the diminished value. Understanding and pursuing compensation for diminished value is a crucial part of being fully reimbursed for the impact on your vehicle’s overall value.
Future Insurability
A vehicle with significantly diminished value may be considered higher risk by insurers. This could cause your insurance premiums to increase. In some extreme cases, it may be difficult to secure comprehensive coverage.

How is diminished value calculated?

In New Mexico, diminished value is influenced by several factors. Working with a property damage lawyer with experience and expertise can ensure you calculate your vehicle’s diminished value correctly when pursuing damages against the at-fault party.

close up photo of calculator display on a smartphone — Photo by Karolina Grabowska on Pexels.com

Common approaches used in New Mexico include the 17c Formula developed by the insurance industry. Another option is the Actual Cash Value Formula (ACV) which considers factors like the vehicle’s pre-accident value, mileage, and the kind of repairs needed.

What is the role of appraisers in determining diminished value?

Hiring a qualified appraiser is often essential in the diminished value calculation process. Appraisers consider several factors, including the extent of the damage, the specific features of the vehicle, and the quality of the repairs.

Some of the key roles of an appraiser include:

Assessing market perception of your damaged vehicle that considers concerns about safety, reliability, and the overall desirability of the repaired automobile.
Comparing with pre-accident conditions to determine the completeness of repairs, alignment issues, and any other discrepancies between the before and after model.
Evaluating the repairs including workmanship, replacement part types, and whether the repairs meet industry standards.

Your property damage lawyer can use the appraiser’s written report to support negotiations or as an exhibit if your case ends up in court.

How do you address diminished value in your property damage claim?

Addressing diminished value in your property damage claim involves several steps. The first is to thoroughly document the accident. Your property damage lawyer can help with this process.

You’ll want to collect witness statements, take photographs of the accident scene and the damage to your vehicle, and obtain the police report. Comprehensive documentation strengthens your overall claim, including the diminished value component.

official currency united states of america — Photo by Karolina Grabowska on Pexels.com

Other ways you can address diminished value in your property damage claim include:

Consult with an appraiser who specializes in diminished value and can generate a report that can prove valuable during negotiations.
Notify your insurance company about the accident and your intent to file a diminished value claim.
Obtain quality repairs from a reputable body shop that specializes in restoring vehicles to their pre-accident condition.

How does a property damage lawyer negotiate with insurance companies?

A property damage lawyer relies on their knowledge of New Mexico property damage laws to negotiate with the at-fault party’s insurance company. This is an important part of the claims process.

With determination and skill, your attorney can get the at-fault party’s insurance company to agree to a fair settlement that includes diminished property value.

Most attorneys take the following approach when negotiating:

Compiling relevant documentation to support your claim.
Crafting a demand letter outlining the damages that include property damage and diminished value and sending it to the opposing party’s insurance company.
Providing an assessment of damages to the insurance company for their review.
Responding to the insurance adjuster’s assessments with counterarguments if necessary.

Shining a light on diminished value

Navigating the complexities of a property damage claim that considers diminished value is challenging. You can increase your chances of receiving fair compensation by working with an experienced property damage lawyer familiar with New Mexico property damage laws.

Don’t get victimized twice. Give us a call to shine a light on diminished value.

How to Choose a Property Damage Lawyer

Written by Brandon Herrera on October 30, 2023. Posted in Property Damage. No Comments on How to Choose a Property Damage Lawyer

The aftermath of a car or truck accident is overwhelming emotionally and physically. Victims are usually focused on gathering the information they need from the at-fault driver and seeking medical treatment for their injuries.

Consulting a property damage lawyer likely isn’t a top priority.

However, grappling with the complexities of seeking fair compensation for your damaged property can add stress to an already traumatic experience. That’s why you need the expertise of a personal injury attorney who specializes in property damage recovery.

firefighters putting out the fire — Photo by Styves Exantus on Pexels.com

In this blog, we explain the nuances of property damage and answer some of the following common questions about finding a property damage lawyer:

What is property damage liability?
Why do you need a property damage lawyer?
What can you include in your property damage claim?
How do you choose a property damage lawyer?

What is property damage liability?

In New Mexico, property damage liability is required coverage. When you’re at fault in a car or truck accident, the insurance coverage kicks in to cover any damages to the other person’s property.

Property damage coverage extends beyond the vehicles involved in the accident. It also applies to any property you may damage with your vehicle, including homes, fences, and light posts. Any personal items inside cars and trucks that are broken, or otherwise left malfunctioning qualify for property damage liability as well.

New Mexico has minimum auto liability insurance amounts:

$25,000 for bodily injury to or death of one person.
$50,000 for bodily injury to or death of two or more persons.
$10,000 for property damage in any one accident.

Why do you need a property damage lawyer?

While New Mexico requires auto liability insurance coverage, it’s often not enough to cover the full costs of your damaged property after an accident. A property damage lawyer can evaluate the full extent of your losses and ensure you receive the maximum compensation possible.

Some of the other ways a property damage lawyer helps include:

Assessing property damage accurately. Determining the true value of property damage extends beyond immediate repair costs. A property damage lawyer assesses the long-term impact on the value of your vehicle, factoring in diminished resale value and potential future repairs.
Dealing with insurance companies. Insurance companies employ tactics to minimize payouts or delay the claims process. A property damage lawyer acts as your advocate, handling communications with insurance companies to protect your rights.
Streamlining the claims process. The sheer amount of paperwork involved in the claims process following a vehicle accident is overwhelming. Your property damage lawyer assumes these responsibilities, streamlining the process so you can focus on your recovery.
Protecting against unfair settlements. Insurance companies often try to settle quickly and as cheaply as possible. A property damage lawyer serves as your buffer, protecting you from accepting an unfair offer that does not reflect the true extent of your property damage.

What can you include in your property damage claim?

Yes, your vehicle likely has damage that requires repair. However, it’s not the only factor to consider when preparing a car or truck accident property damage claim.

Working with an experienced personal injury lawyer who specializes in New Mexico property damage law is the most effective way to maximize your compensation.

Some of the factors you can include in your vehicle accident property damage claim include:

Diminished value refers to the loss in market value you experience when your vehicle is involved in an accident. Any damage is reported to CARFAX as part of its history and affects resale or trade-in value.
Loss of use costs include the amount of time your vehicle was unavailable after the accident due to repairs. The compensation you can receive extends beyond the cost of a rental car or truck.
Repair costs aren’t always fully covered by insurance, leaving you holding the bag for the difference. An experienced property damage attorney can hold the at-fault party responsible for the balance.
Total loss value refers to the amount insurance companies must pay if your vehicle is damaged beyond repair. However, insurance companies don’t always pay enough to allow you to afford a similar model replacement vehicle. A property damage attorney can negotiate with insurance companies for fair compensation.

How do you choose a property damage lawyer?

Choosing a property damage lawyer should never be done in a hurry. Take the time to review your options and choose a personal injury attorney with proven experience helping car and truck accident victims receive fair compensation for their injuries and their property.

Qualities to look for in a property damage lawyer

Besides a verified track record of handling property damage cases, look for some of these qualities when choosing a property damage lawyer to represent you.

Expertise in New Mexico insurance laws and how they apply to property damage claims.
Clear communication of complex legal concepts in a way that you understand.
Negotiation skills are of utmost importance for a property damage lawyer when pursuing fair compensation from insurance companies.
Reputation in the local community and verified reviews from previous clients.
Transparency in the strengths and weaknesses of your case that point to realistic expectations for a positive outcome.

Questions to ask during the initial consultation

Asking the right questions during your initial consultation helps you determine whether the property damage lawyer is the right fit for your case.

Some of the questions we recommend asking include:

How do you assess the strength of my property damage case?
What challenges do you expect and how will you address them?
What is your fee structure and are there any additional costs I can expect?
Can you provide examples of property damage cases you’ve handled successfully?
How do you prefer to communicate with clients?
What approach/strategy do you plan to use to pursue my claim?

Red flags to watch out for

You can watch for tell-tale signs that a property damage lawyer isn’t the best fit for your needs before you sign a contract for their services.

Pressuring you to sign a contract without giving you time to review the terms is one of the biggest red flags. A reputable attorney gives you the time and space needed to make an informed decision.

Other red flags include:

Lack of transparency about their strategy for your case.
Poor communication that includes unresponsiveness and lateness in responding to your inquiries.
Unrealistic promises that guarantee a specific favorable outcome that doesn’t align with the merits of your case.
Unwillingness to provide references of past clients.

Property damage lawyers you can trust

Don’t let the complexities of property damage claims overwhelm you. Reach out to schedule a free case evaluation with our property damage lawyers.

During your consultation, we’ll assess the specifics of your case, address your concerns, and provide a clear understanding of how we can navigate through it to achieve a favorable outcome.

How to Prove a Diminished Value Claim

Written by Brandon Herrera on August 4, 2022. Posted in Property Damage. No Comments on How to Prove a Diminished Value Claim

If you’re unfortunate enough to be the victim of careless driving, the status of your vehicle may be the least of your immediate concerns. Getting treatment for your injuries and filing a police report are top priorities. However, if your automobile was damaged, you might qualify for a diminished value claim.

Not many New Mexico lawyers specialize in diminished value claims. Victims may not even be aware they need this kind of assistance until it’s too late.

What is a diminished value claim?

A diminished value claim can be filed any time your personal vehicle is damaged because of another driver’s negligence. Diminished value is the difference in your vehicle’s market value before and after an accident.

Most insurance companies in New Mexico use a calculation called the 17c Diminished Value Formula to calculate the diminished value of your vehicle. There are four steps in the process:

Determine the value of your car using Kelley Blue Book or NADA Guides.
Apply a 10 percent cap to that value.
Apply a damage multiplier to adjust the value.
Apply a mileage multiplier using your car’s current mileage.

Once you have completed all four steps, you’ll have the after-crash value of your vehicle. Insurance companies can do this for you, but you might want to check their figures or have your property damage attorney do so to ensure accuracy.

How does diminished value hurt my personal vehicle?

Not all automobile accidents result in your vehicle being totaled by the insurance company. Sometimes, the damage can be repaired. While it might seem like this is a good thing, it has little known repercussions for accident victims.

It doesn’t matter if the accident was someone else’s fault. Your personal vehicle sustained damage and no longer is in its original factory condition. That means when you go to sell it or trade it in for a newer vehicle, you’ll receive less money for it. This is called repair-related diminished value.

Victims of automobile accidents get a raw deal all the way around. They likely sustained injuries that can impact their future earnings and health. To add insult to injury, they also might be stuck with a vehicle that’s decreased in value.

diminished value claim Carfax — Carfax reports include any repairs made to your car that required filing an accident claim through the insurance company.

What role does Carfax play in proving my claim?

When a vehicle accident is reported to your insurance company, they automatically notify Carfax. If you’re not familiar with Carfax, it’s a commercial web-based service that supplies vehicle history reports to businesses and individuals on used cars and light trucks in the U.S. and Canada.

If you’ve ever bought a used vehicle from a dealership, you’ve probably seen one of the comprehensive reports this service produces. All you need is a vehicle’s Vehicle Identification Number (VIN) or license plate number and state to request a Carfax report.

The reports aren’t free, so be prepared to cough up some cash if you want to check the impact of a crash on your vehicle’s market value.

To avoid a report being made to Carfax, the vehicle must be repaired out-of-pocket. If you’re concerned about diminished value, your property damage attorney can make this request of the at-fault party. Other negotiations also can occur to offset the loss in value.

What’s the statute of limitations on diminished value claims?

New Mexico is a diminished value state per statute 66-5-301. You have up to four years from the date of your accident to file a diminished value claim.

Additionally, New Mexico has uninsured motorist coverage for diminished value. That means all insurance companies must offer this coverage to accommodate for accidents with uninsured or underinsured vehicles.

How do property damage attorneys prove my case?

Property damage attorneys follow a basic principle when proving your property damage claim. They look for evidence that supports your assertion that another person’s negligence cost you money.

One of the first things your property damage attorney does is request a police report for the accident. Most accident investigators indicate the at-fault party in their reports. Similar documentation also should be available from the insurance claims adjuster.

Diminished property value can be tricky to prove, so most property damage attorney rely on opinions and testimony from experts in the field to bolster your case.

Should you hire a property damage attorney?

If you’re serious about proving your diminished value case, working with an experienced property damage attorney is essential to your success. While you aren’t required to hire a lawyer, working with one can maximize your chances of getting adequate financial compensation.

Bill Russell possesses extensive knowledge of property damage laws in New Mexico. He’s not afraid to go the extra mile to ensure you receive fair compensation for your accident, including covering the diminished value of your vehicle.

Contact Bill today to schedule your free case evaluation.

5 Tips for Getting a Rental Car

Written by Brandon Herrera on July 21, 2022. Posted in Property Damage. No Comments on 5 Tips for Getting a Rental Car

When you’re involved in an automobile accident, getting treatment for your injuries can be your top priority. You may not be thinking about the damage to your personal vehicle (and whether it’s even drivable after the accident).

Even after you get medical attention, your focus may shift to pursuing a personal injury claim if your accident was caused by another driver’s carelessness.

It may take days or even weeks before you realize that you’ve been left without reliable transportation to important appointments. You may qualify for a rental vehicle while the insurance companies sort what to do with your personal automobile. Before you congratulate yourself on a problem solved, keep in mind that finding a rental can be an exercise in frustration because of an ongoing rental car shortage.

What’s causing the rental car shortage?

Getting a rental car can be challenging these days for a variety of reasons. The most prominent cause of the shortage is that during the covid shutdowns, many rental car companies sold off their inventories. They did this for one of two reasons:

No one was traveling and they were taking a loss on maintaining rental cars no one needed.
They sold some of their vehicles to consumers desperate for used automobiles when car dealerships were running low on their own inventories.

Now that pandemic restrictions have eased and people are traveling more, the problem has worsened. Rental agencies haven’t managed to restock their inventories to pre-covid levels, even though demand for their products has soared.

You can increase your odds for rental car success by following the five tips below.

Increasing your odds for rental car success

Your automobile insurance company can provide coverage for a rental vehicle. They can even help you get reimbursement for the rental from the at-fault party. What they can’t do is find you an available rental if none are to be found.

So, what’s a person to do? Here are some tips you can follow to increase your odds for rental car success after an accident.

Don’t wait to request a rental
The longer you wait, the more likely you’ll have difficulty securing a rental vehicle. If you think your automobile is unsafe to drive after the accident, then start finding a replacement right away. You may need to have a friend or family member make the calls for you if you’re in the hospital recuperating from your injuries.
Disclose the reason for your rental need
Rental companies sometimes prioritize long-term rentals because they can be more lucrative. The first thing you should do when calling for a rental is to let the agent know your situation. Tell them you were involved in an automobile accident and need a long-term rental while the insurance company sorts what to do with your vehicle. It’s important to mention you were not the at-fault driver in the accident to ensure rental agencies aren’t leery about providing you with a car, truck, or SUV to drive.
Be willing to take what’s available
Some insurance companies pay for a rental vehicle that’s comparable to yours. However, that doesn’t mean the rental agencies have one available. You may have to agree to take what’s available if you need a rental right away. Otherwise, you could find yourself without reliable transportation. You can always ask the rental agency if it’s possible to upgrade (or downgrade) your rental if one more to your liking becomes available.
Rent from a local
There are alternatives to traditional vehicle rental agencies. Some car owners rent out their automobiles. Just like an Airbnb or Vrbo property rental, there is a version of this service for automobiles. One of the quickest ways to find people who lend out their vehicles is through a service called Turo. Just plug in the dates you need a car and your preferred model, and the platform generates a list of possibilities.
Rent from a car dealership
Here’s an option that many people don’t realize exists because it’s a well-kept industry secret. If you’re struggling to find a rental from one of the usual local agencies, you can consider this alternative. Some car dealerships rent out parts of their own fleets. Nissan and Toyota are among the automobile dealers that let you easily rent from them. There’s no guarantee they’ll have anything available, but it never hurts to ask.

Seeking help with car accident property damage New Mexico

Dealing with all the moving parts after an automobile accident can be stressful. Finding a rental car shouldn’t be one of the things added to your anxiety. Reach out to the car accident property damage lawyers in New Mexico who can help sort it all for you.

Contact Cameron & Russell at 505-218-7844 or request your free case evaluation online. We’ll make sure all your needs are covered.