Each year in the states an auto accident occurs every 10 seconds. This adds up to many thousands of traffic accidents annually in the United States. When a car experiences damage from a crash, the end result is a vehicle that has diminished value. What does this term mean?
Diminished Value is a term that refers to one automobile is or damaged in a crash and sustains either physical damage, cosmetic damage, or structural damage. Even if the vehicle is fixed back to what it was like when it was new and it looks great the value is still not as high as it was before the accident. The difference between what the car is worth after the accident and what it was worth before the accident is simply because of diminished value.
If you don’t believe that diminish value truly exist just try and sell your vehicle after being in an accident. Almost all states require complete disclosure of accident histories prior to being sold. Most people purchasing a vehicle want one that has never been in the crash and if it has they will not pay as much as it is should be worth.
With diminished value there are 3 types of insurance claims. These consist of the following:
1. Immediate diminished value: this refers to the difference in resale value of the vehicle because of the accident it was involved in.
2. Inherent diminished value: this refers to the loss of the market value of the vehicle from the accident. This is the most widely recognized and accepted type of diminished value.
3. Repair related diminished value: this involves the vehicles depreciated value from me the repairs that were done in a completely or improperly. This diminished value is determined by evaluating the overall repair quality was done on the vehicle.
Pretty much all states allow people to file claims for diminished value after a motor vehicle accident that was somebody else’s fault. In addition, those people who have uninsured motorist coverage can also file a diminished value claimed under their own policy. So there can be both 1st party or third-party diminished value insurance claims. 1st party refers to the individual damaging his or her own car and that person’s insurance company paying the claim. This coverage depends on what is excluded or included in the policy. Third-party insurance claims refer to the other party being at fault and the other parties insurance company paying the claim. Pretty much all states have the ability to file claims for diminished value.
Several factors determine how diminished value is calculated including the condition of the vehicle before the accident, the vehicle’s age, the undamaged value, the mileage of the vehicle, and whether or not there were previous accidents.
It can be difficult to pursue a diminished value claims by yourself. A personal injury attorney with significant experience can help dramatically in getting you the money you deserve for diminished value. Make sure to get in touch with a personal injury attorney prior to the statute of limitations expiring in your state.
Want to find out more about personal injury attorneys phoenix, then visit RJ Hurwitz Law site on how to choose the best Phoenix personal injury lawyer for your needs.