Does Colorado have diminished value claim?
Lost vehicle value, also called diminished value, is recognized as a recoverable loss in Colorado. Colorado is therefore said to be a “diminished value state,” which means you could be entitled to bring a diminished value claim after an auto accident. The statute of limitation for a diminished value claim is 3 years.
How do you calculate diminished value in Colorado?
To calculate diminished value in Colorado, calculate the fair market value of the vehicle both before and after the accident. Look at the market value of the vehicle after you make repairs. Colorado law allows accident victims to collect diminished value compensation.
Is a diminished value claim worth it?
By filing a diminished value claim, you might be able to recoup some of the car’s depreciated value. If you’re successful, the insurance company pays you the difference between the car’s value before and after the accident….Step 3: Apply a damage multiplier.
| Multiplier | Damage level |
|---|---|
| 0.00 | No structural damage |
How is diminished value claim calculated?
Under formula 17c, to calculate the diminished value of your car, you would take your vehicle value and multiply it by a 10% cap. You would then apply a damage multiplier based on the damage to your car and a mileage multiplier based on your mileage.
How much can I expect for diminished value?
As a general rule, you should expect to recover 10% to 25% of the fair market value of your vehicle. That means if your vehicle has a fair market value of $30,000, your diminished value after an accident could be as high as $7,500.
How much should I request diminished value?
Who determines diminished value?
Insurance companies use a damage multiplier to adjust the base loss of value. In other words, the cap established above is multiplied by a number ranging from 0.00 to 1.00. This results in an adjusted figure for diminished value based on the insurer’s determination of damage.