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 value of a vehicle depreciates once it is involved in an accident. This stigma makes diminished value a real loss.
Diminished value started with rental cars. Rental companies rent out new cars with low mileage. When these cars hit a certain age or mileage they are sold and replaced with another vehicle. The car depreciates once it is damaged. The amount damage to an automobile equals to its diminished value. 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. Diminished value of a vehicle is the difference between its cost after the accident and prior the accident.
There are three different categories of diminished value. Immediate diminished value which refers to the difference in the amount a vehicle is sold at because of the accident it was involved in. The second diminished value results from the stigma of vehicles with damage history is called the inherent diminished value. It is accepted by most people. Repair related diminished value is the third type. Incomplete or low-quality repairs causes diminished value to the car. Some of the automobile parts could not have been repaired. This type of diminished value is determined by the lack of repair or low quality repair.
Diminished value claiming after an accident is practiced globally. The people with uninsured motorist coverage can also file this claim under their policy. These diminished value claims are first party or third party insurance claims. 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.
Before settling on a diminished value of a vehicle it is crucial to consider its damage extent and how it was repaired. 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.