In some places in the world, car accident happens every minute. This results to many accidents and heavy traffic along the road. When damage to an automobile occurs in crash, the result is that the automobile has a permanently diminished value. The question now is that, what is the meaning of diminished value?
Any vehicle involved in an accident and suffers from either cosmetic damage, physical damage, structural damage and the like, it is where the diminished value comes out. Even if the automobile gets fixed back to a like new condition and looks immaculate is still not worth as much money as it was prior to the automobile accident. In other words, the diminished value of a car is its value from the day it was newly bought to its value the day it was wrecked or its value when it experienced accident.
If you belong to the group of people who doubt the diminished value, then you have to try selling your car after it was wrecked or after it experienced an accident – see what happens with its value. Most states require full disclosure of all accidents that occur to a vehicle. You have to expect that most buyers would want a brand new car, or not a car that is not yet wrecked or has never been in an accident. If the car has a history of car accident, then you as a seller should expect a lower amount of money as a profit.
The following are actually the three main types of diminished value that apply to claims.
The first type is the Inherent diminished value. The inherent diminished value is actually the market value that has been lost prior to the car accident. However, this is the most widely accepted and recognized type of diminished value. To learn more about diminished value, visit https://en.wikipedia.org/wiki/Diminished_value.
The second type of diminished value at http://hansenprice.com/attorneys-services/ is the immediate diminished value. This type of diminished value refers to the difference in resale value of the vehicle because of the accident it was involved in.
The third type of diminished value is the repair related diminished value. This type of diminished value refers refers to the depreciated amount of vehicle due to either improper repairs or those that are in poor quality repairs, having items that were left unfixed, incomplete and so on. This type of diminished value is also determined by total quality of the repairs and so on. Click here to know about us!