The diminished value of a property is the difference between the cost before and after damage. It is mostly applied to automobiles. 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 cars are sold when they age. They knew that when the market devalues the vehicle once they are aware of its history of repair. The amount damage to an automobile equals to its diminished value. Even if the vehicle is repaired back to look good and fit, it is still not the same amount of much money as it was prior the accident. Diminished value of a vehicle is the difference between its cost after the accident and prior the accident.
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. Another diminished value is the repair related. It arises when the car’s value is lowered by repairing it poorly. The vehicle could also be having items that were left unfixed. The quality of repair of a vehicle determines it repair related diminished value.
Many individuals in the world file diminished value claims when they are involved in an accident. Uninsured motorist coverage holders can also file for diminished value claims. These diminished value claims are first party or third party insurance claims. The first party claim is the one filed by the vehicle owner to their insurance company for compensation. It depends on what is the terms of the insurance policy. The third party insurance claims are when the other party caused the damage and hence the other insurance company pays the claim. Most courts supports claims for diminished value.
Before settling on a diminished value of a vehicle it is crucial to consider its damage extent and how it was repaired. Other factors to consider are the vehicle age, its fuel usage, its value before damage and other accident history.
Diminished value claims filing are very involving and can be hard for an average citizen to do so. A personal injury lawyer with enough experience can help in sorting you the money you qualify for diminished value. It very important to hire lawyers who are known for their representation abilities.