As a vehicle owner you hope to never be in an accident. But accidents can and do happen when we least expect it. Luckily here at Brown Collision Repair Center we can get you back on the road quickly. Your vehicle will be in great condition but your vehicle will never be worth what it was before the accident. This is due to diminished value. How do they figure diminished value (DV)? Can I be compensated for DV? We will try to answer these questions as best we can in this blog post.
Once your vehicle is in an accident it will have DV. Even if the vehicle has been repaired in a top quality shop like Brown Collision Repair Center, it will have diminished value. Here is how they figure DV: What the vehicle was worth before the accident – What the vehicle is worth after the accident after repairs = Diminished Value. The vehicles will be appraised according to a guide like NADA.
Once your vehicle is in an accident it losses value. People just aren’t willing to pay as much for a vehicle that has been damaged, no matter how good it looks. With tools like Carfax and Autocheck available it is easier now to report and see if a vehicle has been in an accident. Most insurance companies report to these companies.
But the question always comes up; can I be compensated for the diminished value? That depends on a few things. One is the state you live in, your insurance policy and if you were at fault or not in the accident. In Texas it depends on your policy and which side of the accident you were in. Insurance companies do not have to pay for DV on your vehicle if you were at fault. They will pay for DV if you were not at fault. Also most policies with uninsured driver coverage may pay either way. Ask your insurance agent if they will cover DV and how. Know your rights. It is not safe to just assume your insurance company will cover DV. Ask and find out.
Is there a time limit to claim DV? In Texas you have 2 years to claim DV.
Once your vehicle has been in an accident and been properly repaired it will have DV associated with it. It will never be worth what it was before the accident. For some people this isn’t an issue for others it can be , especially if selling the vehicle after repairs have been made.