- July 25, 2023
If you are in a crash caused by someone else’s negligence, you can seek financial compensation for your damaged vehicle’s loss in value. We will discuss what you need to know about a diminished value claim and why you should hire a Greenville car wreck attorney to fight for your rights!
The Most Important Thing to Know: You Will Not Get the Value of a New Car
Car accidents are not only traumatic experiences, but they can also cause a significant financial burden for the victims. When your car gets damaged in an accident caused by someone else, don’t expect the other driver’s insurance company to cover the cost to get a brand-new car.
The at-fault driver and their insurer are only liable to pay for the fair value of your car in its condition before the accident. Thus, if you were driving a 5-year-old Ford, you cannot expect to get a brand-new Tesla out of the settlement amount.
Even If Your Car Was Brand New, Its Value Depreciates as Soon as It Leaves the Dealership
You may think that your brand-new car is worth its full value, but unfortunately, this is not the case. The moment you drive your car off the dealership lot, it begins to depreciate in value. In fact, some estimates suggest that a new car can lose up to 20% of its value within the first year.
This depreciation occurs because cars are considered a “depreciable asset.” This means that they lose their value over time due to regular wear and tear, changes in technology and design trends, and other factors such as accidents or even recalls.
So why is this important when making a diminished value claim? Because if you’re involved in an accident with a new or nearly-new car, you won’t be able to recover the full purchase price from an insurance company even if all damages were repaired perfectly!
The Other Driver’s Insurer Will Calculate the Diminished Value of Your Car
When you file a diminished value claim, one of the most important things to know is that the other driver’s insurance company will be the one calculating your car’s diminution in value. This means that it is crucial for you to have all the necessary documentation and information about your vehicle’s pre-accident condition, mileage, and any previous damages or repairs.
It is important to keep in mind that insurance companies often try to minimize their payouts on claims, including diminished value claims. They may use tactics such as undervaluing the overall damage done to your vehicle or questioning whether certain damages were actually caused by the accident.
With the help of an experienced Greenville car wreck attorney, you can fight to get a fair evaluation of your damaged vehicle and receive proper compensation.
Inherent Diminished Value
One method of calculating diminished value after a car accident is inherent diminished value. This refers to the reduced value of your vehicle simply because it was involved in an accident, even if it has been fully repaired.
Inherent diminished value takes into account the fact that potential buyers will view your car as less valuable due to its history of being involved in a collision, regardless of how well it has been fixed. Even if there are no visible signs of damage, the knowledge that the car was once wrecked can affect its perceived worth and make it more difficult to sell.
Insurance companies often try to downplay inherent diminished value claims or deny them altogether. However, with the help of an experienced Greenville car accident lawyer, you can fight for fair compensation for all types of diminished value related to your accident.
Repair-Related Diminished Value
Repair-related diminished value is another method of calculation for a diminished value claim. This refers to the decrease in a vehicle’s value due to damage repair, even if it was repaired properly and looks good as new.
When a car is involved in an accident, no matter how small or significant the damage may be, repairs are necessary. However, even with professional repairs and using genuine parts, some buyers will avoid purchasing a previously damaged car.
This could be because they have concerns about its overall condition or simply because they don’t want to deal with potential issues down the line. As such, your repaired vehicle may not sell for as much as an undamaged one would.
Immediate Diminished Value
Finally, immediate diminished value is the last known method of calculating the reduced value of a wrecked car. It refers to the sudden drop in your car’s resale value immediately following the collision. You may not even know that this type of diminished value exists, but it can have a significant impact on your finances.
When you take your car to be repaired, the repair shop will likely use aftermarket or used parts to make repairs. These parts are often cheaper than new original equipment manufacturer (OEM) parts and can result in lower-quality repairs. As a result, when you try to sell your car later on down the line, potential buyers may notice these lower-quality repairs and offer you less money for it.
The insurance company of the at-fault driver will usually calculate immediate diminished value based on their own formula which considers factors like mileage, age of the vehicle, the extent of damage, etc.
However, if you don’t agree with their evaluation or feel they aren’t offering enough compensation for this type of loss in value due to an accident then your Greenville car wreck attorney will dispute their calculation.
Your Greenville Car Wreck Attorney Will Fight to Get a Fair Evaluation of Your Damaged Vehicle!
Knowing about diminished value claims is crucial if you want to get full compensation for your damaged vehicle. It’s important to remember that the other driver’s insurer will not offer you the full value of a new car, even if your car was brand new before the accident.
However, with the help of an experienced Greenville car accident attorney, you can fight to get a fair evaluation of your damaged vehicle and receive proper compensation. Your attorney will work tirelessly on your behalf to ensure that you are fairly compensated for any inherent or repair-related diminished value as well as immediate diminished value.
We offer each new client a free case review, so call us now at 864-310-7897!
