At Ross Moore Law, we are dedicated to helping individuals in Georgia who have been affected by car accidents and other personal injury matters. With years of experience, we understand the challenges our clients face and are committed to providing the support and legal representation they need. Our team handles a variety of accident and injury cases, including car accidents, truck accidents, motorcycle accidents, and wrongful death claims.
Car accidents cause more than just visible damage. Even after repairs, a vehicle often loses value because of its accident history. This loss is called diminished value, and in Georgia, car owners have the right to pursue compensation for it. Understanding diminished value in Georgia is important if you want to recover the true worth of your car after an accident.
In this blog, we explain what diminished value in Georgia means, how to file a diminished value claim, what Georgia law requires, and why working with an experienced Atlanta car accident attorney can help you recover the full value you deserve.
What Is Diminished Value?
Diminished value is the loss in a vehicle’s market value after it has been damaged in an accident and then repaired. This section explains what diminished value means, the types that exist under Georgia law, and why it matters to vehicle owners.
Definition of Diminished Value
Diminished value refers to the reduction in a car’s resale value after an accident, even after all necessary repairs are made. A car with an accident history is worth less than one that has never been in a collision. Car buyers often avoid vehicles with prior damage, which lowers the market value.
Types of Diminished Value
There are three main types of diminished value:
- Inherent Diminished Value: This is the most common and is recognized under Georgia law. It represents the loss in value due to the accident history itself, regardless of the quality of repairs.
- Repair-Related Diminished Value: This occurs when low quality repairs, mismatched paint, or overlooked damage reduce the vehicle’s value further.
- Immediate Diminished Value: This is the estimated loss in value before any repairs are made. It is rarely used in insurance claims.
Why Diminished Value Matters
Even after proper repairs, a vehicle that has been in an accident is less desirable to buyers. The resale value drops, and most insurance companies do not automatically pay diminished value unless the vehicle owner files a claim. Understanding diminished value in Georgia helps car owners recover compensation for this hidden loss.
Georgia Law on Diminished Value
Georgia law allows car owners to pursue compensation for a vehicle’s diminished value after an auto accident. This section outlines the legal basis for these claims and the rights of vehicle owners under Georgia statutes.
Georgia Recognizes Inherent Diminished Value
Georgia is one of the few states that clearly supports claims for inherent diminished value. The Georgia Supreme Court confirmed this in State Farm Mutual Automobile Insurance Co. v. Mabry, 274 Ga. 498 (2001). The court ruled that insurance companies must consider the reduced market value of a vehicle after repairs if the vehicle was damaged due to someone else’s negligence.
Statutory Guidelines for Insurance Companies
Under O.C.G.A. § 33-4-7, the at fault driver’s insurance company must cover damages caused in a car accident. This includes diminished value, as long as the accident victim was not at fault. The law requires car insurance companies to settle claims fairly and promptly.
Vehicle Owners Must File Their Own Claim
Most insurance companies do not offer diminished value compensation unless the vehicle owner files a separate claim. A claim must show that the vehicle lost value due to the accident. The law does not require the vehicle to be sold in order to prove the loss in value.
Limits and Conditions Under Georgia Law
To qualify for diminished value recovery in Georgia, the vehicle owner must not be the at fault driver. The vehicle must have been repaired, and the damage must have affected the vehicle’s market value. Claims are generally stronger when the vehicle has low mileage and had no previous accident history.
Who Can File a Diminished Value Claim in Georgia?
Not every car owner can file a diminished value claim in Georgia. This section explains who is eligible to pursue compensation and what limitations apply under Georgia law.
Only the Not At Fault Driver Can File
In Georgia, only the vehicle owner who was not at fault in the accident can file a diminished value claim. The claim is made against the at fault driver’s insurance company. If you caused the accident, you usually cannot recover diminished value from your own insurance company unless you have special coverage.
Filing Against Your Own Insurance Company
Most insurance companies do not pay diminished value through your own collision coverage. However, if the at fault driver is uninsured or underinsured, and you have uninsured motorist coverage, you may be able to file a diminished value claim with your own insurance company.
Requirements for Filing a Claim
To file a diminished value claim in Georgia, you must prove that your vehicle suffered a loss in market value after the accident and repairs. You do not have to sell the vehicle to show that its value has dropped. Supporting documents like repair estimates, appraisals, and accident reports strengthen your claim.
Special Considerations for Leased or Financed Vehicles
If your vehicle is leased or financed, you may still be able to file a diminished value claim. However, the leasing company or lienholder may have rights to a portion of the settlement. It is important to review your lease or loan agreement and consult a car accident attorney if needed.
Why You Need a Georgia Car Accident Lawyer
Filing a diminished value claim in Georgia can be difficult without legal support. This section explains why working with a car accident lawyer can help you recover the full value of your vehicle loss.
Insurance Companies Want to Pay Less
Most insurance companies use formulas and internal guidelines to minimize the amount they pay for diminished value claims. They often rely on low estimates and may argue that normal depreciation caused the loss. Without a car accident attorney, many accident victims accept unfair offers that do not reflect the true loss of market value.
A Car Accident Lawyer Protects Your Rights
An experienced Georgia car accident lawyer understands how to calculate diminished value properly. A lawyer gathers evidence like independent appraisals, repair records, and market comparisons to build a strong case. They negotiate with insurance carriers and push back when companies refuse to pay fair compensation.
Ross Moore Law Fights for Car Owners
Ross Moore Law in Atlanta focuses on representing accident victims across Georgia. The firm knows how to handle the insurance claims process from start to finish. Ross Moore Law has helped many car owners recover damages for vehicle’s diminished value after accidents caused by someone else’s negligence. They offer a free consultation and only get paid if you win your case.
Legal Representation Can Lead to Higher Settlements
Accident victims with legal representation often recover more for their diminished value claims than those who file on their own. A car accident lawyer can accurately assess pre accident value, repair costs, and accident history to pursue maximum compensation. By working with a professional, you avoid mistakes that could lower your payout.
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 repair costs. At Ross Moore Law, our experienced team understands how insurance companies handle diminished value claims and knows how to fight for the full compensation you’re owed. We offer a free consultation to review your case, explain your rights under Georgia law, and guide you through every step of the claims process.
Contact us at 404-445-8122 for a free case consultation today!
