The reduction of value of a property is the diminished value. Diminished value is generally used in the context of vehicles. The cost of the damaged automobile is different from a similar new vehicle. Many buyers want a vehicle that has not been involved in an accident, and will receive less money simply because it was in an accident.
Diminished value started with rental cars. 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 diminished value depends on the extent of damage. No matter how good the vehicle will look after the repair, its value will never be the same as its buying price. Diminished value of a vehicle is the difference between its cost after the accident and prior the accident.
There are three different categories of diminished value. Immediate diminished value which refers to the difference in the amount a vehicle is sold at because of the accident it was involved in. The second diminished value results from the stigma of vehicles with damage history is called the inherent diminished value. It is the most accepted and widely known type of diminished value. Repair related diminished value is the third type. It arises when the car’s value is lowered by repairing it poorly. Some of the automobile parts could not have been repaired. Repair related repair value of an automobile depends on how well the fixing was after the damage.
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. 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. Most courts supports claims for diminished value.
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.
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. Look for reputable lawyers who will represent you well.