The reduction of value of a property is the diminished value. It is mostly applied to automobiles. 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 started with rental cars. Rental companies rent out new cars with low mileage. The rental firms sold and replaced the old vehicle. They discovered that disclosing the vehicle has been repaired before, the value of the vehicle dropped significantly. The amount of damage to the vehicle determines how much it will be sold at. 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 disparity between an original automobile price and its selling price is the diminished value.
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. Inherent diminished value is the loss of the market value of the vehicle from the accident. It is accepted by most people. Another diminished value is the repair related. Incomplete or low-quality repairs causes diminished value to the car. 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.
Diminished value claiming after an accident is practiced globally. Uninsured motorist coverage holders can also file for diminished value claims. 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. 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.
Diminished value claims filing are very involving and can be hard for an average citizen to do so. Therefore, it is very crucial to be assisted by a personal injury lawyer who the experience in filing the diminished value claims. It very important to hire lawyers who are known for their representation abilities.