Being the victim of a car accident can lead to many stressful aftereffects. Besides dealing with medical issues, you might be without a reliable vehicle for work and other responsibilities. At least insurance can cover the cost of covered repairs. However, a car may suffer from diminished value even after necessary maintenance restores it to what seems like its original condition.
Understanding Diminished Value
At some point, an owner may wish to sell or trade in their vehicle. Getting the most out of the resale value maximizes trade-in savings or sale revenue. Unfortunately, the mere fact that a vehicle has been in an accident can lower its resale value. Customers might worry about potential maintenance issues that could arise after a vehicle has been refurbished, even when an expert performs perfect repairs. Therefore, the owner should be concerned about future deals.
Three Forms of Diminished Value
Diminished value can manifest in several ways, with three being particularly common. Understanding what can go wrong during vehicle repairs can aid in tackling concerns about diminished value.
Immediate Diminished Value: As the name implies, this refers to a vehicle’s value drop immediately following an accident. Specifically, this decreased value occurs right after the crash, before the owner requests repairs. The vehicle’s value might increase after greenlighting repairs a technician performs soon after. However, if the damage is severe, the insurance company might classify the vehicle as a total loss.
Repair-Related Diminished Value: The repair technician must perform a quality job, or else the value may decrease. Shoddy repair work can lead to safety concerns. Therefore, it is essential to book repairs at a reputable service center. Additionally, having a quality inspection done afterward is a wise idea.
The repair work could be exceptional, but the technician may utilize aftermarket parts. Using lower-quality parts during the repair can reduce a car’s resale value.
Inherent Diminished Value: Your car has been in an accident, reducing its value. Even with excellent repair work, the vehicle may not regain its previous worth because it’s now labeled as having been in an accident. Although perceptions of inherent diminished value are hard to change, acting swiftly to repair the vehicle, requesting original equipment manufacturer (OEM) parts, and choosing a reputable repair service can help preserve as much of the car’s value as possible.
Full Compensation Worries
Due to diminished value, an insurance company may not provide a generous settlement on an accident claim. Cost controls and policy limitations could be at play that lead to lowball offers. Insurance companies may also calculate the claim in a specific way that undermines the ability to arrive at a fair offer.
Seeking a Professional Diminished Value Assessment
With a professional diminished value assessment, the policyholder could ask for a thorough and accurate loss assessment. Doing so could put the policyholder in a better negotiation position, increasing the potential for a fair settlement and overall better scenario. Disputes may still arise, and the professional assessment could become a vital legal tool during any litigation.
