In this context, the term diminished value means a loss in the value of a car after an accident. Even after repairs, the value of the car reduces because it has a damaged history. In other words, if your car was damaged in a car accident and was later repaired, the market value will reduce in the eyes of prospective buyers. Diminished value appraisal Maine after a car accident is important when filing for an insurance claim.
The reason for a car’s diminished value is purely due to the fact that your vehicle has been involved in an accident and as such can’t retain its original market value. After repairs are done, the car won’t get back its lost value. For example, after an accident, your insurer pays a claim to repair your car back to its original condition. You then go to sell the car with an estimated value. The buyer will not agree to pay the amount that the car is actually worth because of the accident history of the car. In such situation, it can be said that your car has lost its value.
Diminished value insurance claim can help you get the estimated value for your car. But then, what is a Diminished Value Insurance Claim? The term diminished value insurance claim means an amount of money paid by your car insurance company to compensate you for the difference between your car’s value prior to the accident and its current value after the repairs. The insurance company will perform a diminished value appraisal to ascertain the difference in value and compensate you accordingly.
Each state and insurance company has different diminished value insurance claim policies. When the diminished value appraisal is done, the insurance company will be able to determine who is responsible for the accident. Finding out who is responsible for the accident will determine whether the insurer should pay a diminished value claim or not. Insurance companies do not always pay for a vehicle’s diminished value, but many consumers feel that it is the insurance company’s responsibility to pay for a diminished value claim. Some states pay for the diminished value claim after the diminished value appraisal while others may not pay at all. If you want to know if your state generally covers diminished value claims, contact your state insurance commissioner for details.
You may get paid for the diminished value of your car from your insurance company. You need to find out from your insurer whether they offer diminished value coverage. Some insurance companies offer it in their current policies while others offer it as an added coverage. Before making a diminished value claim, you will need to know how much value your car has lost due to the accident. The quickest way to figure out the value of your car is through the internet. There are online websites that you can use to find out the value of your car, and you can also verify diminished value through a professional appraiser from a company. Make sure that your evaluator is qualified and recognized by insurers.