To keep all the things in place is the motive behind the insurance. All these can be easily done with the help of paying the expenses such as repairs, injuries and damage that happens to the car and the person. But sometimes, people and the insurers both do not know that the car is worthless after the accident may be due to some high-level damages. It cannot be fixed even if the car is back to tip-top condition and shape.
To get help in such losses, you can able to file a diminished value claim and it is helpful in such cases. Let us take a look at what this claim can do for you and whether it is good or not.
What do you understand by Diminished Value Claim?
The diminished value claim refers to the change in the car value in the market after and prior to an accident. The damage to the car never brings back as if it is repaired and properly fixed by the insurance company. If you would like to sell the vehicle in the future, then you will not expect the average value of the vehicle as the buyer can easily check out the past of the car with layout and alignments. In a few cases, the cause may be the painting job as there may be a slight mismatch or the parts used for repair is not of good quality that decreases the value of the vehicle.
You can file a diminished value claim as it covers the decrease in the cost of the car as it is not worthy as per the market value. It can pay off but it takes some time and it is not always guaranteed, as you need to work a little hard.
Do you think that depreciation and diminished claimed value is the same?
No, not at all. Both the terms are extremely different and nothing can be similar in these terms. In short, depreciation is decreased in the value of the vehicle by time. In this, if the vehicles go through the proper repair along with all original parts, still the cost of the car is less than as it is before the accident.
Don’t you know when to file a diminished value claim?
It is simple as to whether to file a claim or not. Here are some cases like if someone hits you and you own collision coverage, if you hit a tree and have comprehensive coverage, then you can file. The answer is not always clear in case of a diminished value claim.
Some factors can affect the diminished value claim as to whether you can file the same or not. These factors include where you live, your insurance company, the pre-accident value of the car and who was at fault. These things can have a meager impact on filling a diminished value claim.
Filling a diminished value claim is not easy at all as it is quite different from the regular insurance claims. You can face some trouble during this claim and it needs some extra efforts.