If you’ve been in a car accident in New Mexico and your vehicle has been repaired, you might assume the ordeal is over. However, even after professional repairs, your car can lose significant market value simply because it now has an accident history. This loss in resale value is known as diminished value, and you have the right to pursue a diminished value claim New Mexico if another driver was at fault.
Understanding how diminished value works and how to file a claim can help you recover the money you deserve.
A diminished value claim is a request for compensation for the difference between your car’s value before the accident and its value after repairs. Even if your car looks perfect on the outside, vehicle history reports will show the accident, reducing what a buyer is willing to pay.
There are three types of diminished value:
- Immediate diminished value – The loss in value right after the accident, before any repairs.
- Repair-related diminished value – The loss due to improper or incomplete repairs.
- Inherent diminished value – The reduction in value due to the accident history, which is the most common and recognized form.
In most cases, New Mexico drivers pursue inherent diminished value claims.
Can You File a Diminished Value Claim in New Mexico?
Yes, you can file a diminished value claim in New Mexico, but only if the other driver was at fault for the accident. New Mexico follows a pure comparative negligence system, which means that even if you were partially responsible, you can still recover damages based on the other party’s percentage of fault.
Your diminished value claim is typically filed against the at-fault driver’s insurance company, not your own. However, many insurance companies do not offer diminished value compensation easily, which is why many drivers need proper documentation and support.
How Is Diminished Value Calculated in New Mexico?
Insurance companies may use a variety of methods to calculate diminished value, but the most common approach includes:
- The pre-accident value of your car
- The severity of the damage
- The quality of the repairs
- The mileage and condition of the vehicle
- Local market trends in New Mexico
Obtaining a professional diminished value appraisal is one of the strongest ways to support your claim.
Steps to File a Diminished Value Claim in New Mexico
If you want to file a successful diminished value claim in New Mexico, follow these steps:
- Confirm fault – Make sure another driver was responsible for the accident.
- Gather documentation – This includes repair invoices, photos, accident reports, and vehicle history reports.
- Obtain a diminished value appraisal – A certified appraiser can calculate your car’s loss in value.
- Send a demand letter – Submit a formal request to the at-fault driver’s insurance company.
- Negotiate if needed – Insurance companies may counteroffer, so be prepared to negotiate or get legal assistance.
Why Diminished Value Claims Get Denied
Insurance companies may deny diminished value claims for several reasons, including:
- Claiming repairs restored full value
- Disputing the appraisal amount
- Downplaying accident severity
- Delaying communication
This is why working with a professional who understands diminished value claims in New Mexico can dramatically improve your chances of receiving fair compensation.
How Much Can You Get from a Diminished Value Claim?
The amount varies depending on your car’s age, condition, make, model, and the severity of the accident. Luxury vehicles and newer models typically experience higher diminished value.
In New Mexico, diminished value settlements can range from a few hundred dollars to several thousand.
Filing a diminished value claim in New Mexico is an important step in fully recovering your financial losses after an accident. Even if your car is repaired, you could still be losing money when it comes time to sell or trade it in. Understanding your rights and taking action quickly may make a significant difference in your compensation.
If you believe your vehicle has lost value due to an accident that wasn’t your fault, consider contacting a diminished value specialist or attorney in New Mexico to guide you through the process.
