Regardless of how perfect your car has been repaired after an accident, any vehicle with a damage history will likely have a low resale value, even if it looks new and functions better than it ever has. Diminished value appraisal for cars allows any vehicle owner to regain the unforeseen and sudden loss in a car’s resale value before an accident and after all the repairs have been undertaken.
Reasons to get diminished value appraisal for vehicles
If your car is new or less than five years old
Before buying a new car, it is vital to understand how much your purchase is worth. In most cases, the value of your new car determines its resale value. The easiest way to find an attractive resale value, even after your car has been involved in an accident is to get a diminished value appraisal for it, especially if it is still new or below five years old.
Immediately after a car accident
If your car was involved in an accident and the settlement amount is not sufficient to buy a new vehicle like the one you lost, getting diminished value appraisal might offer the solution. To confirm the market value of your car before the loss, a diminished value appraisal will be required.
If you own a super vehicle
If you own a convertible or a custom vehicle, it means you have invested a lot of cash in it. Before any insurance firm agrees to insure such a luxury car, thorough documentation to confirm the cost of replacement will be required. If the approximate guide value is not sufficient to replace the car, you should have collector car insurance or diminished value appraisal to cover for the inadequate amount.
To cater for hidden losses after an accident
After an accident, the insurance company might pay for all the repairs needed on your car. The only concern is that the repaired damage might not be the only loss undergone. The truth is, you won’t realize the loss until you make an attempt to sell the car. Therefore, getting a diminished value appraisal will help you to adequately cover any other hidden losses besides the visible car damage.
For financed vehicles
Whether your vehicle is financed or owned, getting a diminished value appraisal helps to compensate for the decrease in the resale value following an accident. For those whose cars are financed, getting a diminished value appraisal also ensures that you do not incur extra costs in addition to your monthly car finance repayments.
Making a diminished value appraisal claim can be a lengthy and hard process. The insurance firm must prove that your damage indeed resulted in a decrease in the resale value of your vehicle before giving you any compensation. What’s more? The regulations and laws about diminished value appraisal vary from one country to another. Thus, before getting any diminished value appraisal for your car, consult with your insurance representative, qualified attorney or the office of the insurance commissioner for relevant guidelines and regulations.…