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A diminished value claim compensates for your vehicle’s loss during an accident, if successful. A vehicle is likely to lose value once it is involved in an unexpected accident. This is called diminished value, it is mainly due to damages and lost appearance and functionality of the vehicle. Secondly, the accident history attached to the vehicle declines its value in the marketplace. In all the scenarios, the value of the vehicle will no longer be the same as it was before the accident.
In this blog we are going to discuss the key elements that everyone should know about diminished value claim California!
If the accident was caused by the other party’s fault, you deserve compensation! This may include:
In addition to that, you are also eligible for car repair expenses. Diminished value claim California allows you to receive compensation from the at-fault party’s Insurance company.
After an accident, the following are the three key reasons why a vehicle loses its value.
The option which is best suited for your condition depends on the stage of your case!
Once something is publicly known, it’s no longer just personal—its value is judged by others. Hence, when your car meets an accident- first and foremost it loses its worth. A potential buyer always researches the history of the car. Here are the important facts that they learned during their research:
The moment any potential buyer learns the car was involved in an accident, they immediately lower their offer. The reason behind the same is simple- accident history. They might also think that repairs weren’t up to the mark. Some feel the vehicle might also have issues in the future.
No matter, what their thought behind the reduction, it wasn’t your fault and you deserve compensation for the same.
In California, these diminished value claims are also referred to as:
Don’t be confused between depreciation and diminished value. Depreciation is the reduction in the value of the car due to age and regular wear and tear. Diminished value is solely due to the unexpected accident.
This is probably the most uncommon or rare type of diminished value claim. It is filled immediately after the accident and before any repairs are made to the vehicle.
This particular type of claim demands more compensation as compared to the other two types.
Why we are calling this particular claim type rare, is because usually auto repairs pay for the cost of repair. After the repair, these types of claims become null and void.
Not everything is repairable. Therefore, despite repairs the vehicle doesn’t regain its former look and feel. Another fact is that- the use of subpar products by the repair shops. Such repair makes the car safe and reliable, but they effectively reduce the car’s value.
If you are responsible for the accident, you are not entitled to file a diminished value claim California!
Most insurance companies do not pay any compensation for the at-fault party in the accident. However, there are chances that some might pay. So, before filing the claim, check with your insurance provider.
Another interesting fact- Some Insurance companies are entitled to pay compensation regardless of whose fault it was as per state regulations!
Insurance companies often ask for added evidence before approving the claim. This is true for cases where there is a high claim value. Here are some of the proven ways to rightly present your case in front of the insurance company:
One of the easiest ways to determine the value of your car is to compare it with a car of the same make, model, age, and miles driven. If the calculated value of your car is less, the difference is because of an accident. This is another point, that you may present at the time of negotiations with the insurance company.
Sail through the complex process of Diminished Value Claims with ADR-Claims. We are here to help and support you at every step of the way. For more information about our services, feel free to contact us!
