As a car owner, you may have heard of the term “diminished value” or “DV” at some point. It is a term used to describe the loss of value that a vehicle experiences following an accident, even after it is repaired to its pre-accident condition. Although it may seem unfair, this reduction in value can be quite significant, and it’s something that insurance companies routinely do when handling accident claims.
Why would you receive a diminished value claim payout from your insurance company? Let’s dive into the details.
What is Diminished Value?
As mentioned earlier, diminished value is the loss of value that a vehicle experiences after an accident, even after it has been repaired to its pre-accident condition. This is because the car’s history of damages and repairs can negatively impact its resale value, making it less attractive to potential buyers.
There are three types of diminished value:
- Immediate Diminished Value – This refers to the loss of value that occurs immediately after an accident. It is the difference between the car’s value before the accident and its value after the accident but before any repairs are made.
- Inherent Diminished Value – This refers to the loss of value that remains even after the vehicle has been repaired. It is the difference between the car’s value before the accident and its value after the accident and repairs have been made.
- Repair-Related Diminished Value – This refers to the loss of value that occurs due to the quality of repairs made to the vehicle. If the repairs are not done properly, this can have a negative impact on the car’s resale value.
Why Would You Receive a Diminished Value Claim Payout?
If you have been involved in an accident and your car has been repaired, you may receive a diminished value claim payout from your insurance company. This is because the insurance company always wants to save money by compensating you for the loss of value that your vehicle has experienced as a result of the accident.
To make a diminished value claim, you will need to provide evidence of the loss of value that your car has experienced. This can be done by obtaining a professional appraisal of your vehicle after the accident by Wreck Check Atlanta. Our specialists can accurately calculate any repair-related diminished value that may have occurred and help you get a fair payout from the insurance company.
Atlanta Diminished Value Claim Appraisals
Receiving a diminished value claim payout from your insurance company is not uncommon. If you have been involved in an accident and your car has been repaired, it is important to consider the potential loss of value that your vehicle has experienced. Wreck Check Atlanta can help you with a diminished value claim to ensure you are properly compensated for the loss of value that your car has experienced.
Contact us today to learn more.
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