Your vehicle was recently in an accident and now the process is beginning to make the repairs. In some cases, opting to file a diminished value claim may be a good idea. Assuming that you were not at fault, this claim may be a good move. Here are some reasons why you could consider the idea of a car diminished value claim and what it could do for you.
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Your Vehicle Was in Great Condition Prior to the Accident
While your vehicle had not just rolled off the showroom floor, it was kept in immaculate condition. It received regular maintenance, the body was free of any dings or flaws, and all the features worked properly. All it all, the car was like new even though you’d owned in for a couple of years.
Vehicles that are in accidents don’t retain their former values. You need to know how much value was lost. Once you know the diminished value, it will be easier to determine if this type of claim is in order.
And It Was Less Than Eight Years Old
Another factor to keep in mind is the age of the vehicle. In general, a vehicle that is less than eight years old may have a lesser reduction in value. This will factor into whether the car should be repaired or totaled. It will also factor into what the insurance company is likely to offer in order to repair the car.
If your car is older than eight years and it’s not considered a classic or vintage vehicle, attempting to determine the diminished value may not be that important in terms of filing a claim. If there is some other reason you may want to have the car appraised, you’re free to do so.
The Cost of Repairs Will be Significant
How much will it cost to repair the vehicle? Generally, if the damage is minor, there’s no need to attempt to identify the car diminished value. In other words, if the damage takes less than $2,000 USD to repair, you may not be all that concerned.
When the repairs will cost several thousand or even go into the five figure range, you definitely want to have an appraisal done. The change in value may be enough to motivate you to file a diminished value claim.
The Car Has Not Been Declared a Total Loss
In situations where the car is a total loss and the insurance company wants to total it, you may not want to go with an appraisal to identify the diminished value. That’s especially true if the offer to total provides an amount that will allow you to replace the vehicle with one that’s as good or maybe a little better than what you had.
If the car isn’t going to be totaled, you definitely want to consider the possibility of identifying the diminished value. That will make it easier to determine if the repair costs the insurance provider is willing to shoulder is sufficient or if filing a diminished value claim would be in your best interests.
Take a close look at what is happening with your vehicle. Can it be repaired? What change in value has taken place as the result of the accident? How do you feel about the offer from the insurance company? If you think learning the diminished value would help in some way, now is the time to contact an appraiser and set up an appointment.
