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Monday, June 23, 2008

What Is Diminished Value?


Dear Bernard's

Maybe you can help me with something. After my wreck, a friend of mine said I should file a "Diminished Value" claim with my insurance company.

I didn't know what it meant, but I asked the other guy's claim adjuster about it and he said, "Naw. you don't need that. It's just a big headache and you won't get anything anyway."

Was he yanking my chain or is it something I should follow up on?

-Stan Dodson

1 comment:

Bernard's Advanced Collision said...

Diminished value means a vehicle that is properly repaired following an accident may be worth less than it was immediately before an accident. This diminished value can be inherent and is often contingent upon a number of factors.

The factors that usually dictate whether there is a diminished value on the vehicle and how much that loss will be include the age of the vehicle, its condition before the accident, prior accidents, the mileage, the extent of the damage done in the questioned accident, the value of the vehicle undamaged and the overall demand for the vehicle in the marketplace.