Apr 01 2012
What is diminished value and how can you get compensated for it?
Diminished Value is a decrease in resale value that occurs as a result of a vehicle being in an accident. All else being equal, buyers will typically choose an undamaged vehicle over one that has been in an accident. In other words, a damaged and repaired vehicle will always be valued less on the open market than its undamaged counterpart.
By law, the person or party at fault should recompense you for all direct and indirect losses. This right is universal and applies to all US states and jurisdictions.
To be compensated for your loss in value (diminished value), you should first submit a demand letter requesting prompt and fair compensation. In addition to the demand letter you should also submit an appraisal report to the at fault party. In many cases, the at fault insurance carrier will send you a check for the incurred loss, this often happens after you have made and submitted the written request.
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