What Is Diminished Value In Relation To My Car Accident?
You mean my car is worth less after an accident?
Short Answer…YES! Even if your car is repaired perfectly, it will still be worth less than it was before the accident. This is because it has a history of being in an accident, which makes it less desirable to someone wishing to buy your vehicle. This is what a potential buyer and your insurance company call a diminished value.
Choosing a body shop that understands diminished value is important
Who is the at fault party?
Diminished Value Post Accident in Arizona?
Diminished value occurs in Arizona when a vehicle is involved in an accident and, as a result, incurs physical damage, whether it is structural or cosmetic. Even if the vehicle is repaired, it is still worth less money than it was worth before the auto accident occurred. This is referred to as diminished value. When selling or trading a vehicle, Arizona requires disclosure of all damage caused by prior accidents that the vehicle has been involved in. Thus, most customers would favor a vehicle with a clean record over a vehicle that has been involved in a prior accident. This means that individuals end up receiving less money for their vehicle than if their vehicle were not involved in an accident in the first place. Three main types of diminished value in Arizona exist when assessing the amount of a vehicle’s diminished value. However, not all three types of diminished value are used when legally compensating individuals for the diminished value of their vehicles in Arizona.
Inherent diminished value, is the loss of market value due to the fact that a vehicle has been involved in an accident. Inherent diminished value is the most widely recognized and accepted form of diminished value and is also the most common basis upon which any supplemental forms of diminished value would be added.
Repair related diminished value, is the depreciated amount of a vehicle as a result of improper or incomplete repairs, poor quality repairs or unrepaired items. Generally, the amount of repair related diminished value is determined by the overall quality of the repairs. Repair related diminished value is a supplemental form of diminished value that may be added onto a vehicle’s inherent diminished value.
Insurer related diminished value, occurs when an insurance company insists or authorizes the use of aftermarket parts or parts not manufactured by the original manufacturer.
How Do I Calculate Diminished Value in Arizona?
Arizona law does allow individuals to collect diminished value when their vehicles have been in an accident. However, diminished value claims must be proven. Those vehicles which are relatively new, have sustained significant damage, and were not previously damaged in a prior accident have the greatest chance of success. Other factors do impact a vehicle’s diminished value, including its mileage, marketplace demand, the value of the vehicle undamaged, and the vehicle’s condition before the accident. Because every vehicle is different, the amount of diminished value varies accordingly, and therefore the industry standard is the use of a diminished value expert.
The best chance at diminished value recovery is with an expert who has a full understanding of the marketplace and claim process in order to accurately calculate a vehicle’s diminished value following an accident.
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If you have any questions, please ask. Our team is happy to answer your questions. We know communication is important through the repair process, and getting you back on the road and happy is a our goal.
Capitol Collision Repair understands diminished value, we can help you get the best possible diminished value claim outcome for your car after an accident. We can help you get your car repaired to the highest standards and get fair compensation (if applicable) for the diminished value of your car. There is a reason we have been a premier body shop in Phoenix since 1988 and also why we are one of the most reviewed auto body shops in Phoenix (Google Reviews). With an A+ Rating with BBB and a lifetime warranty you know you can depend on Capitol Collision.