If you’re car has been in a wreck in the last two years you most likely have a diminished value claim.
What is Diminished Value?
Diminished Value is the loss in value your vehicle experiences after it has been in an accident, even if fully restored. Simply put, your car is wrecked and needs repair, at the instant it was damaged, the vehicle suffered a loss in value. Some of that value can be restored through repairing the vehicle. Some of it, unfortunately, cannot. The loss in value that cannot be restored by repairing the vehicle is called the inherent diminished value.
Why Does Diminished Value Matter?
Once your car is damaged in an accident no one will pay the same amount of money for it after the accident that they would have before, even after the vehicle is fully repaired. No one can prevent it, the car loses value because of market forces that no one has control over. Fact is, in today’s world, consumers will not pay as much for a car that has been in an accident.