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. Many buyers want a vehicle that has not been involved in an accident, and will receive less money simply because it was in an accident.
Diminished value started with rental cars. Rental firms rent out new cars with low mileage. The cars are sold when they age. The car depreciates once it is damaged. 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 different categories of diminished value. It is the depreciated value of an automobile as a result of damages from an accident when it is being sold. Inherent diminished value is the loss of the market value of the vehicle from the accident. A lot of people believe in inherent diminished value. Repair related diminished value is the third type. This refers to the decreased amount of vehicle as a result of poor repairs, incomplete, or poor quality repairs. The vehicle could also be having items that were left unfixed. The quality of repair of a vehicle determines it repair related diminished value.
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. First party is when the owner of the car cause the damage and has his/her insurance company paying the claim. The payment of this claim will be determined by the terms in the contract. Third party insurance claims are diminished value claims for the damaged vehicle caused by another person. 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. A personal injury lawyer with enough experience can help in sorting you the money you qualify for diminished value. It very important to hire lawyers who are known for their representation abilities.