A study conducted recently shows that car accidents occur globally every ten seconds. This amounts to thousands of traffic accidents every year in these countries. When damage to a car happens as a result of a car crash such as colliding head-on with an oncoming car, the automobile comes with permanently diminished value.
The term diminished value refers to when a vehicle is involved in an accident and gets damaged physically, structurally and cosmetically. Even if the vehicle is repaired and restored to its original status, it cannot fetch as much as it would if it had not been involved in an accident. What it was worth before the car crash and what it is worth now after the crash, the difference is the diminished value.
The diminished value actually exists in towns like Austin and Fort Worth. Towns such as Austin require full disclosure of accidents which occurs to a vehicle because some buyers would not like to purchase cars that have been involved in an accident. However, if it has been involved in one, then automatically it will fetch less cash.
Firms like Hansen Price use the following three types of diminished value to apply to claims.
Immediate Diminished Value
In short, this is the difference in resale value of the automobile because of the car wreck it was involved in.
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 last type of diminished value and identifies with the depreciated amount of the vehicle due to improper repairs, poor quality repairs, or having some repair work not completed.
Houston diminished value, for instance, can be filed by individuals that were involved in the vehicle collision as long as they were not the ones who caused it. The various kinds of diminished value insurance claims include the first-party claims and third-party claims. First-party diminished value insurance claims mean that the insurance will cover the person that damaged his or her own car as a result of a car crash. As for third-party insurance claim, you did not cause the accident meaning therefore that the insurance company of the person who wrecked your car will pay the claim.
Multiple factors come into play when determining what the diminished value of your car is and they range from the pre-accident state of the car, the age of the car, the value of the car before it got damaged, if it was involved in any crash before, alongside its mileage.
It’s recommended to seek the services of personal injury attorneys that are experienced in handling such matters since it can be extremely difficult if you decide to handle it on your own.