Was your car in an accident? Were you not at fault, yet the value of your car took a hit? The insurance company may owe you more money than just repairs.
If you’ve ever tried to buy or sell a car (or seen a CARFAX commercial) you’ve probably heard to “check the CARFAX” and see if the car has been involved in a crash. Understandably, buyers are not willing to pay top dollar for a vehicle that has been in a wreck and may avoid buying the car altogether. For those trying to sell their car or trade it in, this could mean receiving a substantially lower offer because of a reported accident. The good news is that the Massachusetts Supreme Court now allows drivers to recover that loss of value in the form of an Inherent Diminished Value Claim. Our consumer protection lawyers in Boston have plenty of experience helping drivers receive this compensation.
What is Inherent Diminished Value in Massachusetts?
Inherent Diminished Value is the amount of money the market value of the now repaired car is diminished because it was involved in the accident. Said another way, IDV is how much less a car is worth after the accident because the accident appears on the CARFAX. This amount can vary depending on the damage sustained and the age of the vehicle but is often in the thousands of dollars. Up until October 2021, IDV was not something that consumers in Massachusetts could recover from until the SJC decided McGilloway v. Safety Insurance Company. That’s why our Boston consumer protection law firm believes it is in your best interest to file these claims.
Why Inherent Diminished Value Claims Are Important
After an accident, the at-fault driver’s insurance company will usually cover the cost of repairs and often pay those amounts directly to the body shop. Assuming there were no injuries, having a working automobile is a priority and repairs take center stage, but many Massachusetts drivers are leaving money on the table when it comes to the Inherent Diminished Value or IDV. If your car was damaged through no fault of your own, then our Boston consumer protection attorneys are here to help.
Other States with Inherent Diminished Value Laws
Many states, including New Hampshire, have Inherent Diminished Value laws that have allowed recovery for many years. IDV is not something new – other states have varying formulas as to how to calculate the amount of diminished value, but an appraisal by a licensed appraiser gives a driver the best chance of recovery. Most local drivers are unaware this amount can be recoverable, and insurance providers are not obligated to offer it without a diminished value claim in New Hampshire. In order to receive the amount owed, you must file a claim with the at-fault driver’s insurance company and have proof through an appraisal of the lost value. While it is possible to receive an offer from the insurance company, many will make you jump through hoops or make low offers in the hopes that you will take it.
File a Diminished Value Claim with Cronin Law, P.C.
It is best to contact a local consumer protection attorney to make sure that the insurance companies make a fair and equitable offer. If the insurance company still refuses to make a fair offer, they may be in violation of M.G.L. ch. 93A, the state’s consumer protection statute which could provide relief in the form of treble damages and attorney’s fees. The Court in McGilloway considered this claim along with M.G.L. c. 176D, § 3 (9) (unfair settlement practices) and denied them in part because this was the first time that inherent diminished value was deemed recoverable by the Court, a defense the insurance companies no longer have.
Our consumer protection law firm in Boston has been holding insurance companies responsible for these claims. If your car has been damaged and you have not received compensation for the diminished value, do not hesitate to contact Cronin Law, P.C. today at 617 213-6883 for a no-cost consultation.
