The diminished value of a property is the difference between the cost before and after damage. Diminished value is generally used in the context of vehicles. The cost of a vehicles that have experienced damage in the past would not be the same as the cost of the identical vehicle that is undamaged. The perception of people for vehicles involved in an accident contributes to devaluing it.
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. Once the car is involved in an accident its value can never be the same again. 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. It is the depreciated value of an automobile as a result of damages from an accident when it is being sold. Inherent diminished value is caused just by the fact that a car was involved in an accident. It is accepted by most people. 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.
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. The diminished value claim can be filed as a first party or a third party insurance claim. The first party claim is the one filed by the vehicle owner to their insurance company for compensation. The policy of the insurance company will determine if the owner of the vehicle will be compensated. Third party insurance claims are diminished value claims for the damaged vehicle caused by another person. Many courts supports diminished value claims.
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.
It is very difficult to file a diminished value claims by yourself. A personal injury lawyer with enough experience can help in sorting you the money you qualify for diminished value. Seek assistance for filing diminished value claims from personal injury lawyer who puts your interest first.