Diminished value is to describe the fall of economic value in a property. Diminished value is generally used in the context of vehicles. The value of a vehicle depreciates once it is involved in an accident. This stigma makes diminished value a real loss.
Rental cars led to the concern about diminished value. Rental firms rent out new cars with low mileage. The rental firms sold and replaced the old vehicle. They discovered that disclosing the vehicle has been repaired before, the value of the vehicle dropped significantly. The amount damage to an automobile equals to its diminished value. Once the car is involved in an accident its value can never be the same again. The difference between its worth before the wreckage and its value after as a result of an accident is the diminished value of the car.
Diminished value can be classified into three. Immidiate diminished value is the diminished value after the car is involved in the wreckage. Inherent diminished value is the loss of the market value of the vehicle from the accident. A lot of people believe in inherent diminished value. The third type is the repair related diminished value. Incomplete or low-quality repairs causes diminished value to the car. The car could be having unrepaired parts. This type of diminished value is determined by the lack of repair or low quality repair.
Diminished value claiming after an accident is practiced globally. Uninsured motorist coverage holders can also file for diminished value claims. Diminished value claims can either be first party or third party insurance claims. First party claims refers to those claims filed as a result of an automobile damaged caused by the owner of the vehicle. The payment of this claim will be determined by the terms in the contract. In third party claims, the insurance company claims compensation from the third party’s insurance for the damage of their client’s vehicle. Many courts supports diminished value claims.
Severity of a car damage and how the car was repaired is a factor to consider when determining the loss in value. Condition before the accident, the age of the vehicle, its value before damage, previous accidents and the mileage are other factors to consider when calculating the diminished value of a vehicle.
Filing for diminished value claims by your own can be very challenging. Therefore, it is very crucial to be assisted by a personal injury lawyer who the experience in filing the diminished value claims. Look for reputable lawyers who will represent you well.