Minnesota Diminished Value Claim

Are you aware of your state’s diminished value claim policy or if you even qualify for one? If you have been in an accident and want to be reimbursed in-full, contact AutoLoss today to speak to an expert.

Diminished Value in Minnesota

The state of Minnesota will recognize a claim for diminished value if the time period has been under six years. The person claiming diminished value must also be insured, otherwise their claim will not be recognized by the state. They must also not be at fault for the incident. See the case below to learn more about diminished value claims in Minnesota.

Angela Marie Carolla, Respondent, vs. American Family Mutual Insurance Company, Appellant; Minn. Stat. § 480 A. 08, subd. 3 (2002)

If you are curious and want more information, contact a representative at AutoLoss today!

About Diminished Value Claims

Diminished Value refers to the reduced value of a vehicle simply because it has a significant damage history. Even after the vehicle has been repaired to it’s optimal value, the market value of the vehicle may still be reduced. There are three types of diminished value that your case may fall under:

1. Inherent Diminished Value: This type of diminished value refers to the loss of value of a vehicle simply because it has been in accident. Even after the vehicle has been fully repaired, it may still be considered less valuable than a car that has no accident history. This type of diminished value is the most common and most highly accepted.

2. Repair-Related Diminished Value: A vehicle that experienced an accident and was not repaired properly may experience repair-related diminished value. Whether the car still has cosmetic damages or structural damages, it may experience loss in value due to incomplete repairs.

3. Immediate Diminished Value: Right after a vehicle has experienced an accident, it may lose value even before the owner has the chance to make repairs. Immediate diminished value can be calculated as the difference in resale value of a vehicle before the damage occurred and the resale value before repairs have been made after damage has occurred.

Don’t Be Fooled by these 4 Collision Repair Myths

  1. You Must Use a Shop Your Insurance Company Chooses

As an insured driver, you have the legal right to pick any body shop that you want.  Insurance companies would prefer that you go to a less-expensive one, and most providers have agreements with specific shops in a given area to lower repair costs and speed up the process.  But insurance adjusters know that you still can take your car to a body shop of your choosing, and they will honor your decision while covering any accident-related repair costs.

  1. Only a Dealer Can Repair Your Car Right  

Misconception number two is that only a dealership that sells the same vehicle make (Ford, Chevy, etc.) as yours has the ability and original (OEM) parts to fix your car the right way.  That’s just simply not true.  Non-dealer-affiliated collision repair shops can order the same parts and their technicians have the training, equipment and experience to work on all makes and models of vehicles… including yours.

  1. A Damaged Frame Can’t Be Repaired

Even minor fender benders can cause frame damage, so if this myth were true cars would be getting totaled out by insurance companies all the time.  If the frame was bent but not structurally weakened, it can probably be fixed.  In fact, many newer vehicles have unibody frames which are routinely repairable.  Your best bet is to have your frame inspected at a body shop to assess the damage and then they will repair it if can be done so safely.

  1. Insurance Pays for All the Repairs

This final myth is one that many car owners fall for, as it depends completely upon your insurance policy’s terms.  That’s why you should always read your policy over carefully, notably when your insurer has made changes.  If the wreck was your fault, you’ll have to pay a specified deductible up front when picking up your repaired vehicle.  If another driver was responsible, their insurance company should pay all your accident-related repair bills.  For example, “collision” coverage under a policy pays for repairs resulting from the accident, but nothing that existed prior to it.  “Liability only” policies will take care of the other person’s car if you caused the accident, but not cover your repairs.

Collision Repair Shops Nearby are Myth-Busters  

When you’re involved in an accident, don’t fall victim to some of the collision repair myths out there.  Bring it to a reliable collision repair shop in your area instead, where the shop manager can expertly answer your questions about any potential repairs, and what to expect when dealing with your insurance company.  In fact, most body shops work directly with insurance adjusters so that you don’t have to.  Local body shop technicians have the training, experience and equipment to repair your vehicle in a prompt and dependable fashion while getting you safely back on the road again.  And having your car restored right the first time will save you time and money later. 

OEM Require Seatbelt Inpections After Collision
OEM’s Require Seatbelt Inspections After Collision

Extensive seat belt testing might be required after a collision:

General Motors might require extensive seat belt inspection and testing following any collision, auto body repair experts demonstrated during a spring “Repair University Live.”

Failure to perform what host Kristen Felder (Collision Hub) jokingly called the show’s “four-hour seat belt test” could result in a pricey lawsuit and serious customer injury or death.

Felder and co-hosts Larry Montanez (P&L Consultants) and Mark Olson (Vehicle Collision Experts) were demonstrating blueprinting on a 2012 Chevrolet Malibu LT on the April “Repair University Live.”  While some of the steps they described on the show might be specific to that specific year-make-model combination, General Motors position statements (2322743 and 2133164) dating back to at least 2014 confirm that multiple restraint tests and inspections are indeed necessary after any collision, on any GM vehicle.

Despite the position statements and contents of individual vehicle repair procedures, it’s likely that repairers are failing to perform such inspections.

About 31 percent of shops who ask to be reimbursed for the work when dictated by OEM repair procedures reported being paid “always” or “most of the time” in an April “Who Pays for What?” survey. However, it was more likely for insurers to “never” pay the shop for their work — and still even more likely the shop had never asked. Around 60 percent of respondents reported never pursuing reimbursement.

Survey co-author Collision Advice CEO Mike Anderson feared this absence of requests stemmed from ignorance rather than generosity.

He said in a statement this was “very concerning in that it indicates to me that too few shops are researching OEM repair procedures and are thus not aware” of OEM requirements.