Published on 12.11.2008.
Everyone of us has a car this days, right? And anyone of us was just an inch close or (god forbid) has been in a car accident. Now, the majority of accidents happens in a town where the car flow is slowly and not much damage will be done to a car, but lets not talk about the circumstances.
The problem is when you want to sell your car if it has been involved in a car accident. Each and every one of us knows to check the car history or if one has a good eye, can tell on the spot if a car has been repaired (good or bad). So, how can your insurance company repair your car (with the money that you have paid) and you end up selling your car with a major loss?
Well, they can. Maybe you have upgraded your car with lots of gadgets, maybe you have maintained your car like it was your own baby. Here comes in the so called “Diminished Value” of your car. Any repair brought to your car ads to the diminished value of that car. and who’s paying for the difference from the diminished value to the value your car had before? It’s you who are paying the difference. And why? Because the insurance company will only pay you the amount of money necessary to repair your car and not the difference from the diminished value to the value your car had before.
How can this be? It’s quite easy. Every insurance company has its own appraisal specialist. But he is paid to apprise the lower value not the true value of your car, in order for the insurance company to gain some more profit from you. Why wouldn’t you pay let’s say 100$ (witch today it’s not a hell lot of money) for a fair and legal appraisal of your car and get, let’s say 6,000$ for your diminished value. When a demand for diminished value is made, insurance companies may deny diminished value has happened. Then claimants need to support their claims, with an expert evaluation that diminished value has occurred. That’s when you need Diminished Value to set things right once again.
Let’s say you have a 29,000$ two years old vehicle and you’re involved in a wreek causing 4,900$ damage. Now, the insurance company will pay for the damage.If you decide to sell your car you’d want to sell it for 28,000$ no? You want but you can’t because a frame or structurally damaged vehicle cannot be sold as a certified used vehicle. BUT you are entitled to a check for the diminished value. So, if a buyer calls you, he will normally ask if the car has been involved in a car accident, and even if you deny it, a buyer can check if it has. so, he would probably offer you 22,000$ and you should get your 6,000 diminished value check from your insurance company after they had repaired it. It’s that easy? Maybe yes, maybe no.
Everyone has to try it.
