The term Diminished Value refers to when a vehicle is involved in an accident and suffers either structural damage, physical damage, or cosmetic damage. Even if the automobile gets fixed back to a like new condition and looks immaculate is still not worth as much money as it was prior to the automobile accident. The difference between what it was worth before the accident and what it ends up being worth simply due to the fact that it was an accident is the diminished value of the vehicle.
If you doubt that diminish value actually exists try and sell your vehicle after an accident and see what happens. Most states require full disclosure of all accidents that occur to a vehicle. Most buyers want a vehicle that has never been in an accident and if it has it will receive less money simply due to the fact it was in one.
There are 3 main types of diminished value that apply to claims. These consist of the following:
1. Immediate diminished value: this refers to the difference in resale value of the vehicle because of the accident it was involved in.
2. Inherent diminished value: this refers to the loss of the market value of the vehicle from the accident. This is the most widely recognized and accepted type of diminished value.
3. Repair related diminished value: this refers to the depreciated amount of vehicle due to either improper repairs or those that are incomplete, poor quality repairs, or simply having items that were left unfixed. This diminished value is determined by the overall quality of the repairs or lack thereof.
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 own policy as well. The 2 types of diminished value insurance claims include first party or third-party insurance claims. First party means that the individual damaged his or her own car and has 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 in to 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 claims by yourself. A personal injury attorney with significant experience can help dramatically in getting you the money you deserve for diminished value. Make sure to get in touch with a personal injury attorney prior to the statute of limitations expiring in your state.