WHAT IS A CLAIM FOR DIMINISHED VALUE?
Filing a diminished value claim on your vehicle after an accident is important for several reasons. Firstly, even after impeccable repairs, a vehicle’s value can decrease significantly due to its accident history. Potential buyers or insurers may perceive it as less desirable or reliable, impacting its resale or trade-in value. Most people check with CARFAX before buying a vehicle. Secondly, failing to address diminished value could result in financial loss for you, as you may not receive fair compensation for the diminished worth of your vehicle from the at-fault party’s insurance company. In reality, this could lead to a situation of negative equity in the vehicle. Thirdly, by filing a diminished value claim, you are asserting your right to be made whole after an accident, ensuring that you’re not unfairly burdened with the financial consequences of someone else’s negligence. Therefore, filing a diminished value claim is essential for protecting your investment and securing appropriate compensation for the diminished worth of your vehicle following an accident.
