Diminished Value Of A Car And A “Loss Of Value” Claim: The Definition
This is a trickier question than it may seem. Let me start by providing a general definition:
The amount of value lost on any item of value due to a change in the condition, age, or demand associated with the item.
Now, as it relates to the value of a car, diminished value is defined in different ways and there are different types of diminished value.
As used in most insurance claims litigation, diminished value is defined as:
“the difference in value of an automobile immediately prior to a collision and the value immediately following a collision”.
This definition is simply another way of saying that diminished value is simply the cost of repair. This may be well true, but if you further describe the type of diminished value by adding the words “residual” or “inherent” or “repair related” or “process related” then you have a whole new definition.
For the purposes of most people, the only type of diminished value they will be concerned with is the inherent or residual diminished value that their vehicle sustains following collision damages and repairs.
This type of diminished value is based upon the fact that a damaged and repaired vehicle is not as desirable as a vehicle of the same make and model and options that has not been damaged and repaired.
Less desire = less value
I think anybody that understands the concept of supply and demand will agree that this analogy is sound.
So, now you know what diminished value is, but now how do you get compensated for it if it has affected you?
Simple! You need to document your loss and demand payment for your damages! Most people enlist the services of an expert appraiser in the area of diminished value. If you need assistance or more information on your diminished value or loss of value claim, remember that information is always free at Petty Details, LLC and we will provide you with a free claim consultation to see what your claim is worth today!