What is Diminished Value Claim?

If you got an accident with your new brand car and your insurance company repairs your vehicle and it looks newer than before. Do you think that the value of your vehicle is same prior and after the car accident? Absolutely not, in fact the value of your vehicle is much lower than before and the difference in the value prior and after the accident is the diminished value. The loss caused by an accident in the value of vehicle is termed as diminished value. 

Insurance Companies Accept Diminished Value Claims?

In most of the cases insurance companies don’t accept the diminished value claim because they don’t consider it as their own responsibility. Often people want to know the authentic reason for refusal of insurance companies to meet diminished value claim. Actually, insurance companies don’t consider it something to pay according to auto insurance law. According to insurance companies, they are only responsible for repair of the vehicle like prior to accident and compensation for the value is not the part of their contract and obligation. Furthermore the companies don’t add the cost of diminished value coverage while selling the insurance policy to their customers. The insurance companies believe that customers will have to pay thousands of dollars to get this kind of coverage for their vehicle.

What Insured Thinks?

Customers believe that just repair is not enough. The damaged in the value of car is also necessary to pay by insurance companies. People never pay a reasonable amount if they find that car had damaged history by an accident. In many of the cases they even refuse to buy such cars or they will offer a lower amount than the actual value of the vehicle. All of these things forced car owners to think more than the physical damaged to the cars occurs as a result of an accident. As for as my opinion is concern, people think accordingly. The insurance companies need to pay the physical loss as well as the loss in the value of vehicle. 

Role of Diminished value Experts

In the situation like this, you will not be able to fulfill the claim with your insurance company when it does not consider it as their legal obligation to compensate you’re in your car diminished value. The diminished value experts like Florida Crash Money can help you to meet your diminished claim. The companies with their years of experience understand the legal things better than us and they can present your case before court and also before your insurance companies. The companies with their legal experts fight on your behalf and win the case for you. We recommend diminished value experts, if you are going to claim your case before court. 

Involvement of Courts

We have seen most of the diminished value claim decided in the courts in the favor of customers. Most of the judges believe that diminished value exit and insurance companies need to pay this value to the aggrieved party. The economists also believe that insurance companies need to pay the diminished value and they need to design the mechanism and add it in their insurance policies. Recently, insurance companies don’t have the diminished value expert like Florida Diminished Value at their office because they don’t consider diminished value as the part of their obligation and also the part of the contract with insured. Therefore they don’t need to keep such experts at their work place as they are not the part of their jobs.

Sum Up

Diminished value is the genuine term and exists in the world. The insurance companies must pay the amount arising from such damages. They also need to add this term in their insurance state law so that the confusion may remove. The insurance companies believe that they will have to charge the higher amount of premium to provide this kind of coverage to its customers. Business world also need to understand the problems of insurance companies associated with diminished value claims so that the things may be managed accordingly.