Diminution After an Auto Accident

Diminution After an Auto AccidentWhen an vehicle gets into an accident and becomes damaged, it needs repairs. While repairs that follow get the car back in shape, a side effect of the damage lingers on.  The side effect, called diminution refers to reduction in resale value. Whenever you see the term, diminution relating to a vehicle, it points directly to reduced value. In fact, though a vehicle may have been expertly repaired with prime parts, its value will decrease. Some things may even come out in better shape than ever before, but diminution sets in.

Diminution After an Auto Accident and Types of Diminution

A car’s value starts decreasing anyway in the first year of its use. Although, diminution refers strictly to an impact on the current value. It refers to that at the time of a collision.  In fact, there are three main forms of diminution. The first form , called immediate diminished value refers to the loss of value right after an accident. The vehicle awaits repairs. The second form, called inherent diminished value refers to a loss of value that remains after professional repairs. The result of just being in an auto accident, it gets the most focus in the industry. Lastly, related diminished value refers to added loss of value due to poorly made repairs. Diminution after an auto accident in this case reflects things like unfixed cosmetic damages . It reflects things like major mechanical flaws left in place.

Depending on the insurance policy, claims do take place on inherent diminished value. In a claim, the policyholder hopes to recover the difference in the value of the vehicle before collision and the value of the vehicle after repair of damages. Sometimes these claims fall outside of contract law. For example, claims made by the vehicle owner against a third party fall under tort law.

Want to know more about diminution after an accident? Need to know about legal steps that come into play for relief and recovery? Contact auto accident attorney, Paul Batta. Get no waste of your time. Get a free consultation from him. He steers you in the right direction.