The reduction of value of a property is the diminished value. 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.
Diminished value started with rental cars. Rental firms rent out new cars with low mileage. 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 amount damage to an automobile equals to its diminished value. No matter how good the vehicle will look after the repair, its value will never be the same as its buying price. The disparity between an original automobile price and its selling price is the diminished value.
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 the loss of the market value of the vehicle from the accident. It is the most accepted and widely known type of diminished value. The third type is the repair related diminished value. It arises when the car’s value is lowered by repairing it poorly. The car could be having unrepaired parts. 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. The people with uninsured motorist coverage can also file this claim under their policy. 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. Many courts supports diminished value claims.
Before settling on a diminished value of a vehicle it is crucial to consider its damage extent and how it was repaired. Other factors to consider are the vehicle age, its fuel usage, its value before damage and other accident history.
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.