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What Does Diminished Value Mean for Vehicles?

A car accident can be costly in more ways than you might expect. Of course, there are the initial repair bills, as well as the cost of any medical attention you may need. Then there are the issues that arise a little later, like the negative mark on your driving record and the associated increase in the price of insurance premiums. Last, consider what may happen when you decide to finally upgrade to a newer model; now that your vehicle has been damaged, how much less will you be able to get for it? Websites like Expert Appraisal Group can help you out there.

This impact on your future earnings is known as your car’s diminished value. There are several dimensions to this problem, both factual and abstract. Regardless of its causes, it can have a very real and concrete effect on your wallet.

 

Why It Happens
There are many reasons for this commonplace attitude, including:

  • Increases in related costs: It is not just the vehicle itself that customers must pay for; there are other costs related to the title, insurance, and so on. A history of crashes, or even just one, can have an unwelcome effect on these prices.
  • Uneasiness about the vehicle: It may sound superstitious, but many people simply feel less safe operating a car that has been involved in an accident. It may be fully repaired, it may be that the collision had nothing to do with the car’s level of functioning, but none of that seems to matter. It is as if people are thinking “It’s crashed once; maybe it has developed a taste for it.”
  • Concerns about substandard parts: Unfortunately, auto repairs are not always made with new parts from the same manufacturer – in fact; they often are not. This can lead to reasonable concerns for people shopping for new transportation. Used parts, or those from a different company, may need repairs sooner or simply not work as well. No one trying to sell a used automobile wants to deal with problems like these, all of which can reduce the amount of payment he or she receives.

Skirting the Issue
It may seem like the simplest solution to this problem is to simply not tell potential buyers about the car’s history. Unfortunately, this is both unethical and illegal. Instead, people can regain some of their losses by requesting compensation for the issue from their insurance providers. This can be difficult, especially since laws and policies vary from place to place, but it is well worth pursuing.

insurance

Nearly all states allow people to file a diminished value claim after an auto accident that was not their fault. Also, those who carry uninsured motorist coverage may be able to file this claim under their policy as well. The two types of diminished value insurance claims include a first party or third-party insurance claims. The first party means that the individual damaged his or her car and had her own insurance company paying the claim. This coverage depends on what is either included or excluded in the policy area third-party insurance claims are when the other party was at fault, and hence the other insurance company pays the claim. Pretty much all state courts support claims for diminished value.

 

Multiple factors come into determining what the diminished value calculates out to including the pre-accident condition, the age of the vehicle, the value when it was undamaged if there were previous accidents, and the mileage.

It can be difficult to pursue a diminished value claim by yourself. A personal injury attorney with significant experience can help dramatically in getting you the money you deserve for diminished value, or even other websites like the one I linked in the first paragraph. Make sure to get in touch with a personal injury attorney before the statute of limitations expiring in your state.

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