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Here is a great tip for Colorado residents with respect to how to maximize your recovery for damage to your vehicle incurred in a traffic accident if you were not at fault. (If you are not from Colorado, please pass this on to your friends in Colorado!)

In many cases a vehicle that has been damaged in a motor vehicle accident is worth less than it was before the accident, even if the damage is repaired. That is because the used car market considers vehicles that have been involved in accidents as less valuable than those that have never been in an accident, all other things being equal, due to the possibility of undetected or unrepairable damage. This kind of loss is called “diminution in value.”

If another driver was at fault for the accident, you have the right to be fully compensated by him or her for your property damage, including diminution in value. Even if the person at fault is uninsured and you must make a claim under your own insurance policy, you have the right to sue him or her to recover the deductible under your own policy and to recover for diminution in value . You might even be able to qualify to sue the person at fault in small claims court, which you can do simply and easily, if your total claim does not exceed $5,000.

If the person at fault does have insurance, you may make a claim against his or her insurance for the damage to your vehicle, including diminution in value. After your vehicle is repaired, obtain two or three valuations from car dealerships. When obtaining the appraisals, please be certain to disclose that the vehicle was in an accident and that repairs have been made. Ask that the appraisals specify how much is being deducted due to the accident. The amount of the deduction is the diminution in value. Submit the appraisals to the insurance company along with a copy of attached Colorado “Jury Instruction 6:11”.

If the insurance company denies your claim, you may sue the person at fault to seek compensation for this loss. Bring the police report, appraisals and Jury Instruction 6:11 to the hearing and show them to the small claims magistrate to document your claim. You might also want to bring photographs showing the damage to your vehicle before it was repaired.

This has proven successful in instances of which we are aware . . . we wish you the best of luck!

Small print: This practical tip is provided by E-legislativeAction.com® for educational purposes only. The goal is to help you best work with your professionals to obtain better results as an informed consumer. There is no assurance that the laws or sample documents are current or that the suggestions provided will achieve the desired goal in all circumstances. Laws change frequently and local laws vary. Therefore, you should always consult with a local attorney, accountant, or other expert.