Do you know what diminished value is?
One aspect of property damage claims that can be overlooked is that of Diminished Value or Diminution of Value of the vehicle. Diminished Value is the difference in the value of a vehicle after repairs have been made. Even with quality repairs, a vehicle may lose value on account of being in a car accident. So where do we go from here?
When can I get compensated for Diminished Value and how do I show the amount of the Diminution in Value?
First, whether you can get compensated for Diminished Value depends on several factors.
North Carolina is a diminished value state, so if you’ve been in a car accident, you may be entitled to the diminished value of your vehicle. But what exactly is diminished value?
If you have questions about diminished value, call 1-888-988-6613
Diminished Value is the amount that a damaged vehicle depreciated on account of being in a car accident that has not been restored through the repair process. This can include the difference in resale value of the car or truck from immediately before the accident occurred compared to immediately after the damage, prior to the repair.
Even if your vehicle has received quality repairs, it may still be subject to Diminished Value simply because the vehicle now has a history of significant damage. If your car or truck received less-than-optimal repairs and still has imperfections or defects as a result of the accident and repair process, it may fall under Diminished Value.
The State of North Carolina and Diminished Value
For the most part, in North Carolina you can claim Diminished Value against the other person’s insurance. This is because claims against the other person’s insurance are based on tort principals that require the defendant to compensate you for all of your damages. On the other hand, if you lease a vehicle and do not own it, the insurance company can refuse to pay diminished value to a vehicle’s leaseholder.
Second, you don’t get Diminished Value automatically after the vehicle was repaired. You have to prove the amount of the decrease in value of the car.
Recovering Diminished Value can sometimes make a really big difference in the property damage claim for clients, particularly clients with new vehicles where the decrease in value may be significant.
If you have been involved in a car accident, contact the personal injury attorneys at Tien Law Firm, PC to make sure that you get the compensation you may be entitled to.