FAQ About Diminished Auto Value Claims

Getting into an accident that leads to excessive vehicle damage is difficult to deal with, especially when you were not at fault but have to sort through the situation. When the other party has auto insurance coverage, it can make the situation a little less stressful because you can file a claim. However, insurance companies are not always fair when claims are submitted, such as by not considering all factors involved with the accident. Before submitting your claim to the other party's insurance company, contact a company to obtain a diminished value appraisal. In this article, learn about diminished valuable appraisals for vehicles that were involved in accidents.

What Is a Diminished Value Appraisal?

Every vehicle is valued at a certain price, which is based on the car's year, make, model, and condition. The value of a vehicle can drastically go down after it has been involved in a collision, even if repairs are made. When the value goes down due to someone colliding with your vehicle, you should not have to deal with the consequences. A diminished value appraisal is basically a way of obtaining professional evidence of what your vehicle was valued at before the collision took place. The appraisal should be obtained so it can be submitted to the other party's insurance company when you file a claim.

Do Insurance Companies Have to Accept Appraisals?

After a diminished value appraisal has been made, it doesn't necessarily mean that an insurance company has to accept it. The appraisal will simply inform them that you expect to get paid a compensation amount that covers what your vehicle was valued at before the collision. Even if the insurance company decides not to honor the appraisal, you can still use it in your favor. For example, if you live in a state that mandates insurance companies to honor the diminished value of vehicles after collisions, an appraisal can be used as evidence if you decide to sue.

Why Is a Diminished Value Appraisal Important?

A diminished value appraisal can be useful if you decide to sell your vehicle in the future. The appraisal will be in the form of a document that can be shown to buyers who have questions about the history of your vehicle. You will also be able to use the appraisal for setting a fair sales price, such as by not overpricing the vehicle. The price should be set lower than what is in the diminished value appraisal document.

For more information about diminished auto value claims, contact a local auto service.