How to File a Lawsuit for Diminished Value
- 1). Understand the law. According to the Appraisal Group of America, if your car was made in 2002 or earlier, was in an accident and the accident was not your fault, you should be entitled to diminished value. Your claim for diminished value can be paid by either your insurance company or other driver's insurance company. A Georgia Supreme Court has confirmed that individuals seeking diminished value from their own insurance companies are entitled to diminished value. However, the issue is less clear when the case involves the insurance company of the party at fault in the accident because there may be no agreement with the insurance company to restore the automobile to its original condition.
- 2). Determine if the benefit of the claim outweighs cost of litigation. Before seeking a claim or lawsuit for diminished value, determine whether it is worth the time and expense by performing a cost benefit analysis. If the lost value is only a small amount, an expensive and time-consuming lawsuit may not be worth the effort.
- 3). Make a claim for diminished value to your insurance company. If you decide you want to make a claim for diminished value, submit it to your insurance company. If you are lucky and the insurance company is educated on the laws of your state, and you meet the requirements for a diminished value recovery, your claim may be granted and you may not need to pursue a lawsuit.
- 4). Get an appraisal. An expert appraisal can determine the exact cost of the diminished value to assist you in making the cost benefit analysis and to provide you with information regarding the amount of damages to seek from the insurance company in a lawsuit.
- 5). File the lawsuit. If the insurance company denies your claim for diminished value, you can file a lawsuit in your state civil court for the amount you believe you are entitled to based on the appraisal. You will need to fill out a complaint against the insurance company setting forth your allegations of diminished value and the amount of damages sought, You will then need to serve the company with the complaint and appear in court to argue your claim on the date provided to you by the court if the case does not settle before that time.