How To Get Paid for the Diminished Resale Value on Your Wrecked Automobile

Get Paid for the Diminished Resale Value of Your Wrecked Automobile

Insurance companies want to pay the least amount possible for a claim. They won't mention the diminished value of your wrecked automobile if their client was at fault. They will only want to pay for the minimum repairs to the damage done to your vehicle. And you will think that is fine and go on your merry way not knowing you have been cheated royally by the insurance company. A diminished value payment means that the company pays you for the difference in your car's value the day before the accident and the day after repairs are completed. The concept recognizes that a heavily damaged car that has been repaired simply does not have the same resale value as an undamaged car might have. Here's how to collect the diminished value of your vehicle that the insurance company does not want to pay you.

Instructions

1. Diminished value is created by the accident. It is the difference a customer will pay for an unwrecked automobile as opposed to one that has been in an accident and sustained damage and been repaired.

2. If you go to your own insurance company for an accident in which the other person was at fault, your rates will not go up. The money comes from their insurance company, not yours.

3. If the accident was someone else's fault, your claim is a third party claim. If the accident was your fault, your own insurance company may not pay diminished value claims. See your policy for details.

4. If you want to get paid for the diminished value of your automobile, you must provide documentation that accurately details your diminished value. Outside companies will negotiate the diminished value claim for you. Look for an advocate auto claims company who will handle the entire process with licensed adjusters and attorneys on staff.

Tips & Warnings

• If you try to negotiate the diminished value yourself, the insurance company will give you the lowest offer and most likely it will be difficult to change it once they give you the figure. Best to go with a professional organization prior to requesting a diminished value settlement.

• Insurance companies know all the tricks. Watch out or you won't get treated fairly.

• That lack of value will show up when you go to sell or trade in the car. Then you will have a big surprise that it's not worth what you thought it was.

• Diminished value claims may not be available in all states. Check to see if it is offered where you live.

References

• Advocate Auto Consultants: What Is Diminished Value?