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.
Rental cars led to the concern about diminished value. Rental firms 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 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 difference between its worth before the wreckage and its value after as a result of an accident is the diminished value of the car.
There are three categories of diminished value that apply to claims. Immidiate diminished value is the diminished value after the car is involved in the wreckage. The second diminished value results from the stigma of vehicles with damage history is called the inherent diminished value. It is the most accepted and widely known type of diminished value. The third type is the repair related diminished value. This refers to the decreased amount of vehicle as a result of poor repairs, incomplete, or poor quality repairs. 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.
Many individuals in the world file diminished value claims when they are involved in an accident. Diminished value can also be claimed by people with motorist coverage that are not insured. 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. 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.
Severity of a car damage and how the car was repaired is a factor to consider when determining the loss in value. Other factors to consider are the vehicle age, its fuel usage, its value before damage and other accident history.
Filing for diminished value claims by your own can be very challenging. 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.