Diminished value is to describe the fall of economic value in a property. Diminished value is mostly applied vehicles that have been damaged. The value of a vehicle depreciates once it is involved in an accident. 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 was brought up by renting automobiles. Companies involved in renting out vehicles rent those which are new to less usage of fuels. 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. 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. 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.
There are three categories of diminished value that apply to claims. 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 accepted by most people. Another diminished value is the repair related. Incomplete or low-quality repairs causes diminished value to the car. The vehicle could also be having items that were left unfixed. The quality of repair of a vehicle determines it repair related diminished value.
In most parts of the world, people are allowed to file a diminished value claim after an accident. 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 is when the owner of the car cause the damage and has his/her insurance company paying the claim. The policy of the insurance company will determine if the owner of the vehicle will be compensated. 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.
The extent of the damage to the vehicle after an accident and the quality of repair is very important in deciding the diminished value of an automobile. The condition of the car and its value before the accident occurred should be put in mind also when determining the diminished value of the 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.