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What to Know with Regards to Vehicle Diminished Value

In many countries across the world, car accidents are said to occur after every 10 seconds. This amounts to thousands of traffic accidents every year in these countries. When damage to a car happens as a result of a car crash such as colliding head-on with an oncoming car, the automobile comes with permanently diminished value.

The diminished value of a car is a term used to refer to an automobile that has collided with another car and suffers a fender bender, structural damage, physical and cosmetic. Regardless of whether the automobile is repaired back to its original state, its’ worth is still less of what it was before the collision. The difference between how much it was worth before the accident and what it is worth now after the accident is what is referred to as the diminished value of your vehicle.

If you doubt diminished value really exists try and sell your vehicle after an accident in towns like Austin and see what happens. Towns such as Austin require full disclosure of accidents which occurs to a vehicle because some buyers would not like to purchase cars that have been involved in an accident. A car that has been involved in a car crash before will get a lower resale value just because it was involved in one.

Three main types of diminished value apply to claims that companies such as Hansen Price use and they are as follows.

Immediate Diminished Value

An immediate diminished value signifies the difference in the resale value of the car after the car crash.

Inherent Diminished Value

The decrease in the worth of the car from the accident when put up for sale in the market is what is referred to as inherent diminished value and is what is the commonly recognized and most accepted form of diminished value.

Repair Associated Diminished Value

This type of diminished value identifies with the depreciated amount of a vehicle that was involved in a car crash due to factors such as improper or poor quality repairs meaning that it is in essence determined by the overall quality of these repairs or lack thereof.

Virtually towns such as Austin and Fort Worth allow people to file their diminished value done by firms such as Hansen Price if they were not the ones that caused the accident. Some of the diminished value insurance claims include the first-party claim and third party. First-party ensures that the person who ruined his or her own car has his or her own car insurer paying the claim. For people who did not cause the accident, the insurance company of the person that caused the crash will have to pay the claim and is what is referred to as the third-party diminished value claim.

Multiple factors come into play when determining what the diminished value of your car is and they range from the pre-accident state of the car, the age of the car, the value of the car before it got damaged, if it was involved in any crash before, alongside its mileage.

Always seek for counsel from firms like Hansen Price that have the expertise in such matters to help you get the amount of money you deserve from these claims.

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