What to Know with Regards to Vehicle Diminished Value
Research has shown that accidents involving cars happen every ten seconds. This amounts to thousands of traffic accidents every year in these countries. Being involved in a car crash and getting your car wrecked, means that your car has a permanent diminished value.
The term diminished value refers to when a vehicle is involved in an accident and gets damaged physically, structurally and cosmetically. Even if the vehicle is repaired and restored to its original status, it cannot fetch as much as it would if it had not been involved in an accident. What it was worth before the car crash and what it is worth now after the crash, the difference is the diminished value.
Austin diminished value is a common phenomenon and actually exists. Towns such as Austin require full disclosure of accidents which occurs to a vehicle because some buyers would not like to purchase cars that have been involved in an accident. However, if it has been involved in one, then automatically it will fetch less cash.
Three main types of diminished value apply to claims that companies such as Hansen Price use and they are as follows.
Immediate Diminished Value
In short, this is the difference in resale value of the automobile because of the car wreck it was involved in.
Inherent Diminished Value
The decrease in the worth of the car from the accident when put up for sale in the market is what is referred to as inherent diminished value and is what is the commonly recognized and most accepted form of diminished value.
Repair Related-diminished Value
This is the depreciation of the value of the vehicle due to improper or incomplete repairs done.
Austin diminished value claims can be filed by individuals that did not commit the car crash. The types of diminished values for insurance claims comprise of first-party or third-party insurance claims. First-party diminished value insurance claims mean that the insurance will cover the person that damaged his or her own car as a result of a car crash. For people who did not cause the accident, the insurance company of the person that caused the crash will have to pay the claim and is what is referred to as the third-party diminished value claim.
Some of the underlying factors that should be taken into account when coming up with the diminished value of a car that was involved in an accident include, pre-accident conditions, the age of the car, the value when it was undamaged, etc.
It’s recommended to seek the services of personal injury attorneys that are experienced in handling such matters since it can be extremely difficult if you decide to handle it on your own.