The Value of Your Claim Reduces Over Time. Diminished Value, by definition, is the depreciated value of an automobile accelerated by an accident or incident; Whereas depreciation is the natural phenomenon that occurs when an automobile gets older. An accident on the other hand will immediately accelerate this rate of depreciation and causes an instant and inherent loss in value, we call this diminished value.The fact remains, an automobile that is wrecked and repaired will always be inferior to, and has less value than, an undamaged counterpart.
Courts have stated that vehicles involved in an accident suffer an inherent reduction in value, and that efficient repairs could not return said vehicle to its pre-accident condition or value.
The majority of car shoppers are not interested in acquiring a wrecked & repaired vehicle; the few still in the market, will demand a hefty discount. Buyers tend to be afraid of the long term implications of a collision as well as the negative impact on the Vehicle History Report or CARFAX®.
Insurance companies are required to put you in the same place you were financially before the accident. Diminished Value reduces with time and insurance companies know this. Our Diminished Value assessment changes weekly based on several forces in the market, the sooner you make a claim for Diminished Value, the more your settlement will be.
