Diminished value is to describe the fall of economic value in a property. Diminished value is generally used in the context of vehicles. The cost of the damaged automobile is different from a similar new vehicle. This stigma makes diminished value a real loss.
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 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 the most accepted and widely known type of diminished value. Repair related diminished value is the third type. Incomplete or low-quality repairs causes diminished value to the car. The vehicle could also be having items that were left unfixed. This type of diminished value is determined by the lack of repair or low quality repair.
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. The diminished value claim can be filed as a first party or a third party insurance claim. First party claims refers to those claims filed as a result of an automobile damaged caused by the owner of the vehicle. It depends on what is the terms of the insurance policy. In third party claims, the insurance company claims compensation from the third party’s insurance for the damage of their client’s vehicle. Many courts supports diminished value claims.
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. 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.
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.