Diminished value is to describe the fall of economic value in a property. Diminished value is mostly applied vehicles that have been damaged. 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.
Rental cars led to the concern about diminished value. Companies involved in renting out vehicles rent those which are new to less usage of fuels. The rental firms sold and replaced the old vehicle. The car depreciates once it is damaged. 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. 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 different categories of diminished value. Immidiate diminished value is the diminished value after the car is involved in the wreckage. Inherent diminished value is caused just by the fact that a car was involved in an accident. It is accepted by most people. The third type is the repair related diminished value. It arises when the car’s value is lowered by repairing it poorly. Some of the automobile parts could not have been repaired. 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. Diminished value can also be claimed by people with motorist coverage that are not insured. 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. 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.
Severity of a car damage and how the car was repaired is a factor to consider when determining the loss in value. 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. It is encouraged to seek the help of a personal injury attorney who has the knowledge about the legalities involved assist in filing the diminished value claims. Look for reputable lawyers who will represent you well.