3 Types of Diminished Value - St. Louis Automobile Accident Injury Lawyer

Car accident claims can be complicated, especially if they involve serious injuries and property damage. For this reason, it is advisable that you seek legal help from a competent St. Louis car wreck lawyer, who can explain you your rights, and help get the damages that you deserve. This is important because there are certain aspects of a car accident claim that you may not understand, and may end up settling the claim for less. Many of the car accident victims that we come across are either not aware of, or do not completely understand the concept of diminished value.

In cases of car accidents where the car is repairable, the victim is likely entitled to compensation for “diminished value”. In this post, we will discuss this in concept in detail.

Theoretically, “diminished value” refers to the idea that the resale value of a car is reduced after a crash. You won’t simply get as much money for your car once you disclose that the car has been in a wreck. Buyers do not like such cars, and won’t pay the top price even if the car is in proper aesthetic and operating condition. Considering this, if the damage has been caused by the negligence of another person, you can recover compensation for the resulting diminished value.

“Diminished value” isn’t as simple as it sounds

Whenever then insurance companies come into picture, things tend to get complicated. When you get your car repaired after a car accident caused by another driver, it becomes possible for you to recover diminished value. However, most insurance companies do not want to pay for diminished value due to obvious reasons. So, you may have to get an accurate appraisal done by a diminished value expert.

There are generally 3 Types of Diminished Value:

1. Immediate Diminished Value: This standard is used in the event that your car accident case goes to court. Immediate diminished value is simply the difference in the resale value of your car before and after the damage occurred.
2. Repair Related Diminished Value: In some cases, complete repairs may not be possible. The car may still have bumps or scratches even after the repairs are made. In such cases, repair related diminished value account for the car’s lost value due to less than optimal repairs.
3. Inherent Diminished Value: This standard assumes that the car has been repaired in the best possible way. Inherent Diminished Value is the amount of money the car’s value has been reduced after the repairs.

Getting fair compensation for diminished value

In order to get fair compensation for diminished value, it is in your best interests to speak with an experienced St Louis car accident lawyer. Call (314) 361-4242 to schedule a free consultation with an experienced attorney at The Hoffmann Law Firm.