Introduction
Diminished value is the most under-utilized claim in the automobile insurance industry. It often goes unpursued because of the lack of understanding. Here we will define diminished value, why it is an important consideration when managing an automobile claim after a collision and how we can help ensure you are fairly compensated for vehicle damage.
What is Diminished Value?
A vehicle suffers diminished value when it sustains physical damage in a collision but due to the nature of the damage it cannot be restored to its pre-loss condition. Simply stated, it is the automatic loss in value from a collision. Even if the repairs are expertly done, the value of the automobile will be considerably less. Most consumers will never pay the same price for a repaired vehicle that has been in a collision compared to one with no loss history.
Why is Diminished Value Important?
The stigma of a vehicle that has been in a wreck weighs heavily into the definition of diminished value. It has been estimated that 55% of consumers would not buy a car that had been in a collision and 81% would not have a car that had been in a wreck unless they were given a large discount. If you have been involved in a collision, take the time to consider the full scope of loss you have suffered especially if your vehicle is less than four years old. There are no set rules for measuring diminished value. Every vehicle loses value differently but the impact to your compensation for damage could be up to 30%.
Successfully calculating diminished value requires expert consultation by a Diminished Value Expert or Licensed Public Adjuster. They will perform an inspection, providing a diminished value report determining if your vehicle was actually repaired to a pre-loss condition and the loss of value your vehicle has sustained.
If you have been injured in an automobile collision, GLP Attorneys will support you from injury to recovery along with pursuing the fair compensation for vehicle damage. Contact our office for a free consultation to determine whether hiring an attorney is the right choice for you and your family.