The diminished value of a property is the difference between the cost before and after damage. Diminished value is mostly applied vehicles that have been damaged. The cost of a vehicles that have experienced damage in the past would not be the same as the cost of the identical vehicle that is undamaged. The perception of people for vehicles involved in an accident contributes to devaluing it.
Diminished value was brought up by renting automobiles. Companies involved in renting out vehicles rent those which are new to less usage of fuels. The cars are sold when they age. 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. 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.
Diminished value can be classified into three. Immidiate diminished value is the diminished value after the car is involved in the wreckage. Inherent diminished value is the loss of the market value of the vehicle from the accident. It is accepted by most people. 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. The car could be having unrepaired parts. Repair related repair value of an automobile depends on how well the fixing was after the damage.
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. These diminished value claims are first party or third party insurance claims. 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. Third party insurance claims are diminished value claims for the damaged vehicle caused by another person. 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. 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.
Filing for diminished value claims by your own can be very challenging. It is encouraged to seek the help of a personal injury attorney who has the knowledge about the legalities involved assist in filing the diminished value claims. Seek assistance for filing diminished value claims from personal injury lawyer who puts your interest first.