Diminished value is the difference between what your car was worth prior to an accident and what it’s worth after the repairs are made. It represents a loss in market value that would never have occurred if the car had not been involved in the accident. This is an important aspect of filing and processing car accident claims New Orleans LA as well as negotiating settlements. Here are some basics about what diminished value means to those claims.
The Underlying Concept of Diminished Value
The reasoning behind diminished value is simple. It holds that no matter what steps are taken, a vehicle is never the same after an accident as it was before. Even with the use of original parts and a thorough repair job that leaves no signs of what took place, the car will never be what it was in the past.
That does not mean the vehicle is not safe to drive after the repairs. It also doesn’t mean that there are any outward signs that the vehicle is involved in an accident. What it does mean is that the history of that accident is now recorded and must be revealed to any buyer who may be interested in purchasing the car in the years ahead.
What It Means When You Want to Sell the Car
Since the accident and the decreased value is now part of the car’s history, it will make a difference when you decide to sell the car. Along with the fact that potential buyers are likely to order a car history, it’s a good move on your part to be forthcoming and reveal everything that you know about the vehicle. That includes the fact that it was in an accident.
You will not be in a position to command the same price for your car as someone who owns a the same make and model that was never involved in an accident. Fortunately, you can use resources to calculate the difference in value, and base your asking price on that data.
How to File Claims and Try to Offset the Lost Market Value
You may not be aware of it, but there’s the possibility that one of the car accident claims New Orleans LA that you submit may be for recovering some of the diminished value. The process can vary from one jurisdiction to another. There are also some differences in how insurance providers go about evaluating these types of claims.
The most practical way to prepare for filing the claim is to work with a professional appraiser. That individual can help you identify the pre-accident value as well as what the car will be worth once the repairs are made. That in turn provides you with the figure that you can use to seek additional compensation.
Why You Need Help From an Appraiser
Why do you need an appraiser to provide you with information about the value of the car before the accident and after the repairs? Insurance providers will not accept figures that are determined by sources that are not considered expert. Your claim has little to no chance of going anywhere without properly documented information.
If you’re dealing with the aftermath of an accident, there’s a good chance that hiring your own appraiser will be helpful. Discuss the situation with a professional and see what can be done. The result may help take some of the sting out of the loss that you recently sustained.