Have you been in a car accident in the last 3 years? If so, you may be entitled to financial compensation as a result of the loss in resale value caused by that accident. It’s called “Diminished Value” and your insurance company doesn’t want you to know about it! In fact, they may even make misleading statements that lead you to believe you don’t qualify, just to increase their profits.
What Is Diminished Value?
Diminished Value is the part of a wrecked vehicle’s pre-Loss resale value that has not been restored by the repair process. Any vehicle that has been in an accident immediately suffers an inherent reduction in value, even when repairs are performed correctly. This is because the courts recognize that any vehicle with an accident history will sell for less than it would have without any history of damage. Most consumers don’t want to buy a car that’s been in an accident, and if they do, they expect to get it for a much lower price.
Diminished Value Claim
For reasons that must be obvious to the educated consumer, many insurance companies attempt to steer their policyholders away from collecting diminished value. In the same way that they attempt to increase their profits by steering customers to their preferred body shops, they also using misleading arguments to persuade customers that they don’t qualify for diminished value.
Commonly, an insurance company will offer a very low settlement number in the hopes that the consumer will accept without question, and without hiring a professional to help them interpret their offer. Many insurance companies have embraced a flawed formula meant to reduce the amount of money they pay out in Diminished Value claims. Don’t just take the insurance company’s word for it.
In addition to the Inherent Diminished Value suffered because of the loss in resale value as a result of the vehicle now having an accident history, your car may also have suffered “Repair-Related Diminished Value”. Maybe your car was repaired at an insurance company’s “preferred” shop, and they cut corners during the repair.
K & M Collision performs in-depth post-repair inspections to find any safety or quality issues with past repairs. This is a very important service after an accident, not only because it provides a complete picture of the Diminished Value your vehicle has suffered, but also because it’s a way to ensure that your car is still safe to drive.