Maximize the Value of Your Car Wreck Claim
An accident, or damage causes your vehicle to diminish in value. Even a perfectly repaired car’s value diminishes after an accident. This is why you need to know your vehicle’s diminished value.
Public knowledge of your vehicle’s accident history has a devastating effect on your car’s value. Your vehicle’s diminished value becomes public knowledge either through disclosures when your car is sold, or when your car’s accident history is published in a CARFAX report.
The two types of vehicle diminished value are inherent diminished value and repair-related diminished value.
Inherent diminished value is the loss of value that occurs simply because a vehicle has been involved in an accident, even if it has been fully repaired. Repair-related diminished value is the loss of value that occurs due to incomplete or inadequate repairs.
After an accident, it is important to understand the difference between inherent diminished value and repair-related diminished value. If your vehicle has lost value due to either of these factors, you may be able to file a claim with the insurance company of the at-fault driver.
If you’ve been in an accident and were not at fault, every state allows you to file diminished value claims. Recover the lost value you’ve experienced as a result of the accident from the at-fault driver’s insurance company. Any amount you receive for diminished value is in addition to any repairs that the insurance company is required to pay.