All About Car Diminished Value
A study conducted recently shows that car accidents occur globally every ten seconds. This translates to thousands of accidents in towns such as Houston alone annually. When damage to a car happens as a result of a car crash such as colliding head-on with an oncoming car, the automobile comes with permanently diminished value.
The diminished value of a car is a term used to refer to an automobile that has collided with another car and suffers a fender bender, structural damage, physical and cosmetic. Regardless of whether the automobile is repaired back to its original state, its’ worth is still less of what it was before the collision. To understand clearly, the difference between the worth of your car before and after the collision is what is referred to as diminished value of your automobile.
Austin diminished value is a common phenomenon and actually exists. If you would like to sell your car in any of these towns, you have to disclose fully if the vehicle was involved in an accident since most buyers want a vehicle that has never been involved in one. Most buyers need a car that has never ever been in an accident and even if they do, it should go for way less than that which has not been involved in an accident.
Three main types of diminished value apply to claims that companies such as Hansen Price use and they are as follows.
Immediate Diminished Value
In short, this is the difference in resale value of the automobile because of the car wreck it was involved in.
Inherent Diminished Value
This is the most recognized and accepted form of diminished value and is the loss of the market value of the car from the accident.
Repair Associated Diminished Value
This type of diminished value identifies with the depreciated amount of a vehicle that was involved in a car crash due to factors such as improper or poor quality repairs meaning that it is in essence determined by the overall quality of these repairs or lack thereof.
Virtually towns such as Austin and Fort Worth allow people to file their diminished value done by firms such as Hansen Price if they were not the ones that caused the accident. The types of diminished values for insurance claims comprise of first-party or third-party insurance claims. First-party ensures that the person who ruined his or her own car has his or her own car insurer paying the claim. For people who did not cause the accident, the insurance company of the person that caused the crash will have to pay the claim and is what is referred to as the third-party diminished value claim.
Multiple factors come into play when determining what the diminished value of your car is and they range from the pre-accident state of the car, the age of the car, the value of the car before it got damaged, if it was involved in any crash before, alongside its mileage.
It’s recommended to seek the services of personal injury attorneys that are experienced in handling such matters since it can be extremely difficult if you decide to handle it on your own.