Disclaimer: This article does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In Massachusetts, you can seek compensation for diminished market value (DMV) when your vehicle loses resale value after an accident—even if repairs restore its function. While no statute explicitly names “diminished value,” insurers must act in good faith under M.G.L. c. 175, § 113H (Unfair Claim Settlement Practices). You may also access arbitration for certain property damage disputes under M.G.L. c. 90, § 34M.
1. Determine Pre-Accident Value
Obtain your vehicle’s clean retail or private party value using reliable sources such as Kelley Blue Book, NADA Guides, or Edmunds. Record the date, mileage, trim level, and any options.
2. Determine Post-Repair Value
After repairs, use the same valuation source and criteria. Account for any remaining cosmetic or mechanical issues.
3. Calculate Diminished Market Value
Subtract the post-repair value from the pre-accident value. Example: if the pre-accident clean retail value was $20,000 and the post-repair value is $18,000, your diminished value claim totals $2,000.
4. Document Your Claim
- Keep all repair invoices, parts lists, and work orders.
- Photograph the damage and repairs with timestamps.
- Obtain a written appraisal from a certified vehicle appraiser.
- Print and save pre- and post-accident valuation reports.
5. Submit Your Claim
Submit a written request to your insurer citing M.G.L. c. 175, § 113H to require a fair adjustment: M.G.L. c. 175, § 113H. If the insurer denies or undervalues your claim, demand arbitration under M.G.L. c. 90, § 34M: M.G.L. c. 90, § 34M.
Helpful Hints
- Hire a licensed appraiser with diminished-value experience.
- Use multiple valuation sources to support your claim.
- File your claim promptly; statutes of limitations apply.
- Maintain a detailed claim journal (dates, contacts, actions).
- If the insurer refuses payment, consult an auto accident attorney.