Diminished value is often used to refer to the decline in resale value of a vehicle that has been involved in an accident. Often when a vehicle is involved in an accident, the insurance company fixes the car and it is possible for it to be fixed to its original condition before the accident. However, even with perfect repairs, the fact that a car has an accident record, makes its value dramatically reduce. In fact, in some worse cases, there are those that will not buy a vehicle that has been in an accident. Here are some facts about diminished value that you need to know.
There are three types of diminished value; immediate diminished value, inherent diminished value and repair-related diminished value. Immediate diminished value refers to the difference in the value of the car before the accident, and it's value after an accident when repairs have already been completed.
Inherent diminished value is the decline in the value of the vehicle after repairs have been done is usually based on the perception that buyers have of the vehicle as an accident vehicle. They perceive the vehicle to have lost its value seeing that it has been involved in an accident even if it has been perfectly repaired following the accident, visit website!
The last kind of diminished value is the repair-related diminished value. This form of diminished value is based on repairs that have not been done with the aim of restoring the vehicle to its former glory. You will find some mistakes in the fix that contribute significantly to the loss of value in the car. Such errors include mismatching color shades, a body that is still dented, or generic aftermarket spare parts. It may not seem like so, but such measures taken during repair contribute to the decline in value.
You may be wondering what next after you if your car has diminished value. Well, fear not because there is such a thing as diminished value insurance. The purpose of this insurance cover is to cushion you from the loss you experience when the value of your car diminishes. It pays you some significant amount of cash to safeguard you from financial strain that you may face with a diminished value. These claims are paid based on the circumstances surrounding the accident and the state which you come from. Each state has its own rules concerning diminished value insurance claims so make sure you know those of your state.
These are some of the facts about diminished value that you need to know. You can also learn more tips on where to find the best diminished value, go to https://en.wikipedia.org/wiki/Diminution_in_value.