A study conducted recently shows that car accidents occur globally every ten seconds. This translates to thousands of accidents in towns such as Houston alone annually. If your car gets damaged due to an accident, then your vehicle is said to have permanent diminished value.
In essence, this means that your vehicle has either suffered structural damage, physical damage or cosmetic damage as a result of this accident. Even if the automobile gets fixed back to a new-like condition and looks immaculate, it will not have the same worth as it had before the crash. The difference between how much it was worth before the accident and what it is worth now after the accident is what is referred to as the diminished value of your vehicle.
The diminished value actually exists in towns like Austin and Fort Worth. It is a requirement of these towns to disclose all accidents that happen to trucks and small vehicles. Most buyers need a car that has never ever been in an accident and even if they do, it should go for way less than that which has not been involved in an accident.
Firms like Hansen Price use the following three types of diminished value to apply to claims.
Immediate Diminished Value
An immediate diminished value signifies the difference in the resale value of the car after the car crash.
Inherent Diminished Value
This is the most recognized and accepted form of diminished value and is the loss of the market value of the car from the accident.
Repair Related-diminished Value
This is the depreciation of the value of the vehicle due to improper or incomplete repairs done.
Virtually towns such as Austin and Fort Worth allow people to file their diminished value done by firms such as Hansen Price if they were not the ones that caused the accident. The various kinds of diminished value insurance claims include the first-party claims and third-party claims. First-party ensures that the person who ruined his or her own car has his or her own car insurer paying the claim. For people who did not cause the accident, the insurance company of the person that caused the crash will have to pay the claim and is what is referred to as the third-party diminished value claim.
Some of the underlying factors that should be taken into account when coming up with the diminished value of a car that was involved in an accident include, pre-accident conditions, the age of the car, the value when it was undamaged, etc.
It is not easy to pursue a diminished value claim by yourself and is why you are advised to hire a personal injury lawyer with significant expertise in this area.