Knowing Your Diminished Value Orcar Appraisal After Accident

Certain things come to us as a shocker in life, as much as we try to protect ourselves and plan our lives, there are still moments where unforeseen contingencies take hold of us and leave us out in the dark. Just as it happens to us, it happens to our cars also. In the case of accidents and damages, the value of the car might diminish,but it is vital for you to understand your car appraisal after accident.

Believe it or not, this term is not a new one, it might seem new to consumers but the insurance companies are very much aware of it,and how it works, they also hope that you never get to understand what it means and how it goes a long way in determining the value of your car.

What people perceive diminished value to be?

Diminished value according to the perception of people, is the reduction in the market value of your car due to damages or accident. It is perceived by many that they can pay the same price for a vehicle that has been damaged as though it was never damaged.

The true meaning of diminished value

Diminished value refers merely to the sum of money that will never return to you after selling your car because it has experienced an accident. Even though your car is a new one suffered an accident, it will be subjected to the diminished value. Even though as a new car it was replaced with original parts by the company who built it, it will still be subject to the reduced value.

If you are sure that you are not the one responsible for any accident or damage incurred, you can file a diminished value claim to your insurance company.

What is a diminished value claim?

This is simply a claim made by you asking your insurance company to pay you a certain amount of money that would compensate for the diminished value of your car after an accident. It makes up for the reduced market value of your car and the difference between its value when sold without a crash and its new worth after the accident. Most insurance companies don’t want you to understand this but it is best you know how to go about it so that you can be compensated duly.

Before making a claim, it would be best you knew how to calculate how much value has been reduced after the accident. There are many factors to be considered and many metrics used, however, it would be in your best interest to hire a credible evaluation company that specializes in calculating the diminished value after an accident. You can count on us to help you determine your car appraisal after the crash so that you can file your claim and have success.