Even a small accident can lead to a diminution in value of your vehicle. This diminution in value, also known as “car accident diminution of value,” occurs due to the loss of value your car suffers after an accident, even if it has been professionally repaired. This article explains everything you need to know about car accident diminution of value – from its definition and calculation to enforcing your claims. We will shed light on the different types of diminution of value, provide tips for preserving evidence, and show you how to effectively assert your rights.
After an accident, it’s important to clarify when a vehicle is considered damaged by an accident.
What Does Car Accident Diminution of Value Mean?
Car accident diminution of value describes the decreased market value of a vehicle after an accident. Even if the damage has been repaired, a flaw remains that reduces the resale value. This loss of value can be significant and should be considered during claims settlement. Diminution of value arises simply from the fact of the accident, regardless of the extent of the repair. Potential buyers are often skeptical of accident vehicles and are willing to pay less, even if there are no visible damages remaining.
The Different Types of Diminution of Value
There are three main types of diminution of value: mercantile diminution, technical diminution, and diminution of replacement value. The mercantile diminution is the most common form and refers to the loss of value due to the accident event itself. Technical diminution occurs if the original condition could not be restored through the repair. Diminution of replacement value is relevant for vehicles that cannot be repaired and whose replacement value is lower than before the accident. “The correct determination of the type of diminution of value is crucial for a successful claims settlement,” says Dr. Hans Müller, author of the book “Claims Settlement in the Automotive Sector.”
Similar to casco damage diminution of value, it is essential to determine the diminution of value correctly.
How Is Car Accident Diminution of Value Calculated?
Calculating diminution of value is complex and requires expertise. There are various methods, such as the expert appraisal method or the dealer estimate. Factors such as vehicle age, mileage, type of damage, and repair method play a role. An independent car appraiser can professionally determine the diminution of value and provide you with an expert report. This report serves as evidence against the insurance company.
Car appraisal report detailing diminution of value after an accident
Enforcing Diminution of Value Against the Insurance Company
Once you have an expert report on the diminution of value, you can assert your claims against the opposing insurance company. The insurance company is obligated to compensate for the damage, including the diminution of value. However, it can happen that the insurance company does not recognize the diminution of value or only pays a partial amount. In such cases, it may be necessary to involve a lawyer.
A hidden defect when buying a car can also lead to diminution in value.
Tips for Preserving Evidence
To successfully assert your claims, good evidence preservation is essential. Document the accident damage with photos and videos. Secure witness statements and carefully keep all relevant documents, such as the accident report and repair bills. The better your documentation, the stronger your position against the insurance company. “Seamless documentation is the key to success,” emphasizes car expert Ing. Franz Wagner.
Car Accident Diminution of Value: Know Your Rights and Enforce Them
Car accident diminution of value is an important aspect of claims settlement after an accident. Know your rights and enforce them! An independent car appraiser and possibly a lawyer can help you successfully assert your claims.
The definition of an accident vehicle can help you better understand the status of your vehicle.
Frequently Asked Questions About Car Accident Diminution of Value
- When is there a claim for diminution of value? A claim generally exists for any non-fault accident that leads to a loss of value of the vehicle.
- Who calculates the diminution of value? An independent car appraiser can professionally calculate the diminution of value.
- What to do if the insurance company does not recognize the diminution of value? In this case, you should consult a lawyer.
For those interested in training to become a car appraiser, there are various opportunities available.
Further Questions About Accident Damage:
- How high is the diminution of value for minor damage?
- Can I calculate the diminution of value myself?
- What documents do I need for claims settlement?
Find more helpful information on autorepairaid.com on topics such as “When is a vehicle considered an accident vehicle?” and “How do I find a qualified car appraiser?”
Need Support?
We at autorepairaid.com are here to assist you with our team of experts. Contact us for a free consultation regarding car accident diminution of value. Our car experts are available 24/7 for you.
