A study conducted recently shows that car accidents occur globally every ten seconds. This translates to thousands of accidents every year. If your car gets damaged due to an accident, then your vehicle is said to have permanent diminished value.
The term diminished value refers to when a vehicle is involved in an accident and gets damaged physically, structurally and cosmetically. Regardless of whether the automobile is repaired back to its original state, its’ worth is still less of what it was before the collision. What it was worth before the car crash and what it is worth now after the crash, the difference is the diminished value.
The diminished value actually exists in towns like Austin and Fort Worth. 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. A car that has been involved in a car crash before will get a lower resale value just because it was involved in one.
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
The decrease in the worth of the car from the accident when put up for sale in the market is what is referred to as inherent diminished value and is what is the commonly recognized and most accepted form of diminished value.
Repair Related-diminished Value
This is the last type of diminished value and identifies with the depreciated amount of the vehicle due to improper repairs, poor quality repairs, or having some repair work not completed.
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. As for third-party insurance claim, you did not cause the accident meaning therefore that the insurance company of the person who wrecked your car will pay the claim.
Some of the underlying factors that should be taken into account when coming up with the diminished value of a car that was involved in an accident include, pre-accident conditions, the age of the car, the value when it was undamaged, etc.
It is not easy to pursue a diminished value claim by yourself and is why you are advised to hire a personal injury lawyer with significant expertise in this area.