Consumers Turn to Litigation for Car Accident Compensation

When a vehicle is in a car accident, the value of the vehicle is diminished even after repairs are made. Insurance companies are obligated to pay for this diminished value loss in addition to covering other repairs and expenses. 

Car accidents can be traumatic and expensive so it’s important that victims are properly compensated.

If you were in a car accident with an uninsured or underinsured motorist, you may not have been paid the total compensation due to diminished value losses, which may account for hundreds to thousands of dollars in extra compensation. Legal help is available!

Drivers may be unaware that they are eligible to make a diminished value claim, and their insurance companies may not make this possibility clear or may even unfairly deny or otherwise fail to pay these claims.

Diminished value claims do not require that there is a specific amount of damage done to a car. The “diminished value” refers to the discrepancy between how much the vehicle was worth prior to the accident and how much it was assessed for after the accident, regardless of repairs.

Anyone whose car has been in an auto accident caused by another party may qualify for a diminished value claim. Exact qualifications, however, may vary from state to state.  

Some frustrated policyholders have turned to litigation after their insurance companies failed to pay them for their diminished value losses after an accident. Policyholders who filed a class action lawsuit against Allstate recently reached a proposed settlement agreement that would cover more than 14,000 claims in Washington. Each plaintiff is expected to receive an average of $500 per vehicle.

A growing number of car accident victims all across the country are purportedly being improperly denied this compensation.

Plaintiffs may find that their insurer pays for the actual damage done to their car, but not for the diminished value. One car owner alleged that her car’s value had decreased by more than $4,000 because of an accident.

Her insurer, Progressive, informed her that they did not pay diminished value claims, she states. When she went back to the insurance company with a letter from a dealer explaining the diminished value, Progressive told her she needed additional documentation, but then refused to explain what documentation would be required, she says, instead of telling her, “you have to figure it out.”

Many car accident victims may be in a similar position with their own insurance companies.

You may be eligible to join this investigation if you were in a car accident within the last 5 years with an uninsured driver that was not your fault, and your auto insurer failed to cover your car’s diminished value losses.

Pursuing litigation can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.