If your car was damaged due to the negligent actions of another, your car may be worth less money and you can file a Diminished Value Claim. But what happens if you have already requested an offer and either didn’t get one or got a poor offer? Then, the next step is to write a second letter that shows you understand the insurance company’s duty to you and that there will be consequences to the insurance company if they ignore you.
The insurance company is required to provide you with a prompt, fair and equitable good faith settlement offer for the diminished value of your vehicle, and provide you with documentation supporting their offer or denial of your diminished value claim.
Your second letter should remind the insurance company that the Arizona Unfair Claim Settlement Practices Act states that an insurer shall attempt in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear. They are in violation of that statute if they fail to settle your diminished value claim in good faith.
You should repeat that Arizona case law and the Restatement (Second) of Torts allow diminished value compensation for a negligently damaged vehicle separate from the cost of repairs and loss of use. Again, if they didn’t give you a good offer, they are ignoring the law.
Then, make a second request for a fair and equitable offer. Inform them that if they don’t make you a fair diminished value offer, then you will be forced to file a complaint against them with the Arizona Department of Insurance. This is the governmental body, the function of which is to “promote a strong insurance marketplace through consumer protection, sound financial regulation, and economic development.”
Clearly state in your letter that this is your second request, that you are requesting a “fair and equitable offer for the diminished value of my vehicle, and for you to provide me with copies of any and all information obtained by you, or those acting on your behalf, which form the basis of your diminished value offer.”
Include that the deadline for this offer is now five working days.
The insurance company must now respond to your letter within five days with their settlement offer. Hopefully, you’ll get a satisfactory offer in response. If not, there are other steps you can take to encourage the insurance company to give you a fair offer for your diminished value loss.
If you’d like some help going through this process, a Car Crash Kit can provide you with form letters that include relevant Arizona case law and statutes. Also, included in your Car Crash Kit will be directions, suggestions on how to respond to common insurance company arguments, and how to settle your diminished value claim after you receive a fair settlement offer. The cost for a Car Crash Solo is only $19 and can help you recover hundreds to thousands of dollars more in compensation.
To see if your property damage qualifies for diminished value compensation just take our Free Quiz below.
Legal Disclaimer: This article provides general information and should not be taken as legal advice. This article is an advertisement.