You are going to want to read this if you drive a car. Have you ever heard of “Diminished Value?” I hadn’t. If you have an auto accident that was not your fault and your car has been damaged, then not only did your car suffer damage but your car’s value suffered as well! That’s right, if prior to your accident your car was worth $25,000, then after the car has been repaired it is worth $25,000 minus a sum of money based on the extent of damage the car suffered.
If you sell your car to a private party and if they fails to look at Carfax, you may get lucky and receive full value for the car. Unfortunately, most people look at Carfax today and Carfax will report the accident and the extent of damage. Now, to the heart of the matter. Many states have a “Diminished Value” law that requires that an insurer pay you for the loss in value the car suffers due to your accident (if the accident was not your fault).
What the law does not require is that your insurance company inform you that the law exists and that they owe you money. If you are lucky enough have read this article, you may collect a substantial amount of money from your insurer. I was lucky to have been told about “Diminished Value” by a neighbor.
So, share this article with anyone you know who has had an accident. Your insurance company will not!
Here’s your joke of the day:
This drunk wanders into a hotel lounge where an insurance convention just happens to be taking place. The drunk is hell-bent on causing trouble and he yells, “I think all insurance agents are crooks; and, if anyone doesn’t like it, come up and do something about it.”
Straight away, this guy runs up to him and says angrily, “Hey! You take that back right now!”
The drunk sneers and asks, “Why, are you an agent?” The man replies, “No, I’m a crook.
3 Replies to “DIMINISHED VALUE”
so have you gotten your car back yet? our convertible days are done now. Dang I really like driving around in it. Did u get the money from the insurance company? Wish I would have known this when I had my two accidents that were not my fault!
Have a nice Thanksgiving!
still in negotiations. Got car back, but back in shop. Hope all is well with you.
In addition, should the car be totaled the insurance company will use their own formula to determine a value. That may not be well received. Gap insurance covers that. If a company can be found to write it.
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