The need for insurance diminished value | Insurance diminished value

The squeaking sounds of the tires. The madding sound of the metal rubbing against metal as you rolls forwards in the driver's seat. You get out the car, you are shaking but you are not hurt. The car unfortunately has been damaged severely.  After you deal with the insurance companies and get your car repaired, your car will never be the same and will not be much when you are trying to sell it.

When is a car claimed to be diminished?

• A car is said to be diminished by an insurance company who have to cover the losses.
• A vehicle that has been damaged and is not insured and the cost of repair is equal to the market value before the damages.
• A car that has been stolen. If it has not been found in 30 days and is not insured then you have to file a complaint or tell the DMV within the first 2 months of the theft.

Are you eligible for insurance diminished value?

In order to file for an insurance diminished value, there are a few things you have to consider.

• Whose fault was the accident? Insurance diminished value is not meant for those who caused the accident. If you are not at fault and were the one who was hit, then you are eligible.
• What kind of damages are we dealing with? Depending on the damages caused to the car, you may or not be eligible.
• If you own the car, you will be eligible. Car owners will receive payments for the vehicle's loss in value.
• Expensive cars that cost over several dollars are eligible.

 Importance of an insurance diminished value report

When applying or looking for an insurance diminished value, it is important to have an insurance diminished value report. The report includes a few important things like

• Looking at the features of the car: It is important to know all the features of the vehicle from the model and the make.
• Assessing the damages: Assessing the damages is an important part of the report. It includes a report of the car's condition before and after the accident. It helps find the market value of the vehicle.  Every car is analyzed differently depending on its brand and demand in the market.
• Local Comparables: When making a case for how much your vehicle costs, a list of local comparables is important. The report includes the dealer's marketed prices which is a close number to what yours is. It also consists of the year, the model, the body style and several other features. 

 It is always important to not get into an accident and not have to go through the hassle of dealing with insurance companies. It is essential to have your car insured as well.

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