The reduction of value of a property is the diminished value. Diminished value is mostly applied vehicles that have been damaged. The value of a vehicle depreciates once it is involved in an accident. The perception of people for vehicles involved in an accident contributes to devaluing it.
Diminished value started with rental cars. Companies involved in renting out vehicles rent those which are new to less usage of fuels. 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. Once the car is involved in an accident its value can never be the same again. 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. A lot of people believe in inherent diminished value. Another diminished value is the repair related. 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.
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. 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. 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. Most courts supports claims for diminished value.
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. 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.
It is very difficult to file a diminished value claims by yourself. 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.