Top Mistakes to Avoid When Filing a Diminished Value Claim in New Mexico!

Has your car been involved in a car accident? Has it gone through repairs and works just fine? No matter how good your car looks and functions after repair, it is likely to lose its market value. This reduction in the value of the car is called “diminished value”. 


Diminished value claim New Mexico allows you to earn back on your loss. Yes, this wonderful opportunity is designed to help car owners recover their loss. However, filling out the claim can be daunting. Even the tiniest of mistakes leads to a loss of money. In this blog, we will explore the most common mistake made by car owners when filing the diminished value claim. How can you avoid these mistakes and gain the maximum amount? 


Mistake #1: Not Knowing about the Diminished Value Claim. 


Not being aware of the claim means you do not file a diminished value claim. 


Most car owners are not aware of New Mexico diminished value claim, which prevents them from recovering their loss. For insurance companies, paying for a diminished value claim is a kind of loss only; hence, they refrain from mentioning it to you. That means, if you don’t know it's a profit for them. 


As a car owner in New Mexico, it is your right to understand your right. The more you know, the easier it is to protect your car, your money, and your peace of mind.


Mistake #2: Not filing the claim at the right time! 


You don’t have all the time in the world to file a diminished value claim New Mexico. This time frame is referred to as the statute of limitations. The guideline in New Mexico is to file within 3 years from the date of the accident. But the sooner the better! 


What can happen if you file your claim late?


  • There is a chance of you losing important documents 

  • Your vehicle can get damaged again or even stolen 

  • The insurance company may reject your claim 


It's always advisable to act fast when everything is fresh and easy to prove. 


Mistake #3: Not getting a professional appraisal 

The diminished value law doesn’t work on words. You saying that my car used to be worth this and now its value has reduced won’t make a strong impact on the insurance company. This is where a professional appraiser steps in. The appraiser is an expert who knows how to calculate the difference between your vehicle’s pre-accident and post-repair market value.


The appraisal report will include: 

  • Pre-accident vehicle value

  • Details of the accident and repairs

  • Evidence of reduced value after repairs


This report acts as the strongest piece of evidence backing your diminished value claim. If you don’t come to an agreement with the insurance company and decide to file a case in traditional court. This report will still hold strong as key evidence.


Mistake #4: Accepting the first offer from the insurance company 

Insurance starts with the lowest offer, because for them, paying for a diminished value is a kind of loss. Therefore, they want to keep it as little as they can. 


Here, you need to be smart enough to understand their downplay. It’s because once you have agreed, you can’t go back and ask for more. 


Before accepting anything:


  • Have a professional review the offer

  • Compare it to your appraisal

  • Don’t feel rushed or pressured to settle



Final Words! 


Diminished value claims pave a fantastic way for you to recover your loss. However, you need to make the most of this opportunity and avoid making silly mistakes that can jeopardize your case. COPY URL FROM: New Mexico diminished value claim
Location: United States

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