While driving along the highway in your neatly polished car you hear a loud bang. It’s a huge collision. You opened the doors of your car to inspect the incidence and discovered that one part of your prized possession has been completely wiped out. The first thing that comes to mind is who will fix all the expenses to bring the car back in top shape. Well, if you have a credible insurance then you basically have nothing to worry about as they help you fix all the damages and cover all expenses without any fuss. On the other hand, if you don’t have a credible car insurance that will handle all the expenses what do you do? Your beautiful looking car will look as though it’s old after an accident with a diminished value
What is Diminished Value?
Diminished value appraisal New York is a reduction in the market value of a vehicle after it has been damaged in an accident and repaired. Many insurance holders now hold their insurance liable to pay for the diminished value after an accident
For instance, your car which is just a few months old got involved in an accident. It’s the duty of your insurance company to pay for the repair damages and restore it. However, you decide to sell your car to buy a new one. Eventually, you list the vehicle on the market and spoke with several interested buyers. But as you’re about to hit a sale the buyer refused to pay the asking price and instead brought forward an offer that is far below what you bargained. The secret is exposed. The buyer is aware of the vehicle history. Despite the fact that the car is in top shape, the buyer is not willing to go above what he offered otherwise he will abandon the chance of buying. This means you have suffered the effect far than the accident. Your car’s diminished value has caused a lot of financial loss.
One of the major reasons why insurance companies don’t bother about your car’s diminished value is because it’s not their responsibility to put back the car to its original state prior to the accident. Of course, they will foot the bills to fix the damages but they would rather not pay for the lost value. So before buying insurance, check to see if the policy covers diminished value.