If your vehicle has been damaged in a collision or wreck, the evidence of repairs is likely to have a negative effect on the resale value of your car. This is the case if you intend to sell it in future. The reduction in worthiness is called diminished value. This is an insurance concept which was developed with the intention of helping estimate loss of value of a vehicle following damage or accident. You should learn how to calculate diminished value. It does not matter whether your car does not display obvious damages; it is likely to experience diminished value. Remember that you have a legal responsibility of disclosing information about your car and whether it was involved in an accident to your potential buyer.
Understanding diminished value
If you have a new car going for $20,000 and it is involved in an accident, the insurance company offers to repair your car. Even if after repairs and your car looks like new, it is not. In fact, if you decide to sell the vehicle, you are likely to sell it at a lower price, let us say $15,000. Thus, the diminished value can hurt the resale value of your car.
Research on relevant laws
You should note that different states have different laws on diminished value claims. In fact, some even do not recognize these claims. There are also variations about exactly how diminished value can be calculated. You should search online for the particular diminished value laws that are applicable in your state to get an idea of your rights.
Filing diminished value claim
Depending on the nature of your case, you may qualify to file for diminished value claim. As noted above, this is dependent on the state’s laws and the particulars of the case. Nowadays, there are several attorneys specializing in diminished value claim. Find a reputable lawyer in your locality and discuss the case with him or her. It is advisable to file the claim as early as possible. This is because, in some states, there is a deadline for filing such a claim. The lawyer will also advise you whether the claim is worth to pursue or not.
Determining diminished value
Nowadays, there are many websites that have diminished value claim calculators. These tools can help you determine the estimated amount you can claim. However, it is advisable to consult professionals as they can offer you insights and ideas.