What is Diminished Value?
Diminished Value is the economic loss in a property's value as a result of having been damaged. In this case, it is the portion of the damaged vehicle's original value NOT being restored through the repair process, even after quality repairs. Think about it... would you pay the same amount for a vehicle that has been in an accident for one that has not been in an accident? An accident immediately accelerates the depreciation process instantly causing a drop in market value.
There are 3 basic types of Diminished Value:
Immediate Diminished Value: This is difference in resale value of a vehicle immediately before damage has occurred and immediately after damage has occurred (prior to repair). Most courts will use this standard as the primary measure of damage when employed to seek reimbursement for damage from a negligent party. As courts are rarely the chosen venue for recovery of property damage, the standard of “Immediate Diminished Value” is rarely employed in resolving Property Damage claims.
Inherent Diminished Value: This assumes optimal repair quality has been achieved and is defined as the amount by which the resale value of a repaired vehicle has been reduced simply because the subject vehicle now has a significant damage history. “Inherent Diminished Value” is the most widely recognized and accepted form of Diminished Value. It is also the basis upon which any supplemental form of Diminished Value would be added.
Repair-Related Diminished Value: This is a common “supplemental” form of Diminished Value and includes any additional amounts by which the resale value of a subject vehicle may be further reduced because of less-than-optimal repairs. This could include anything from minor cosmetic imperfections to major structural defects.
Diminished Value Calculator
Pre-Accident Cash Value: $13,500
Post-Repair Cash Value: $11,500
Loss In Value Amount: $2,000
Amount Owed By Insurance Company:
$2,000
How Does Diminished Value Affect Me?
Would you pay the same amount for a vehicle that has been in an accident vs. one that has not been in an accident? We think not. Flip roles - If you are trying to sell your wrecked and repaired vehicle, the buyer will most likely refuse to pay the same amount that they would pay for a vehicle that has never been in an accident. This means you have lost equity in your vehicle. This loss in value is owed directly to you after repairs to your vehicle are complete.
Do I Qualify for Diminished Value?
Georgia courts have recognized that Diminished Value is owed under an auto insurance policy; however, there are a number of factors that could make a vehicle ineligible for the compensation, including the age of the car, original market value, and the extent of the loss.
FIND OUT IF YOU are eligible FOR DIMINISHED VALUE - (404) 392-4822
Insurance companies tend to underestimate Diminished Value amounts - this is where we come in to help. Most of our customers initially receive around $300 or less, which is typically only 10% of what you are truly owed. Our job is to find the true value of your vehicle so you can receive the maximum compensation that you are entitled to.
Insurance carriers in Georgia are required to pay their insureds for Diminished Value. If you were at fault, either collision or comprehensive, you can get reimbursed for the loss in value due to your neglect. There is no premium penalty for requesting Diminished Value.