There could be an appropriate lower value claim you didn’t be aware of. But the fact that your car is repaired and theoretically, has returned to the state it was prior to the incident, it doesn’t mean that it’s valued at the exact same level like it was before.

If your vehicle was involved in a car accident, it is worth a lot of value, no matter how well repair shops do in fixing your car. When all is done, a car that has been involved in a collision is worth significantly less than one which has never been in a collision regardless of whether the two cars are identically. This article will outline the things you need to learn to be able to negotiate additional settlement from the insurance company for the decreased value of your vehicle.

How much is diminished value?

Diminished value refers to how much the car had been worth before the collision and the value after all repairs have been completed for the automobile.

If this is a challenge to comprehend then let’s take a take a look at an example. Let’s say you bought an all-new car for $30,000. One week after taking the car to your home and you’re hit by a negligent driver. even though you didn’t suffer any injuries your car required massive repairs.

Once the repairs are completed, your car could not be worth more than $20,000 right now. The difference of $10,000 between what your car was worth when you purchased it and what it’s worth today will be what is known as the “diminished worth” of your vehicle.

You might wonder why all this is important? The reason is that the fact that your car was damaged in an accident will affect the name of your car by revealing its VIN. Anyone who wants to purchase your vehicle in the future can see that it was involved in an accident when they look at the title of the vehicle as well as the Carfax report. This incident will be with you for as long as you own the vehicle.

A car that has been involved in an accident more valuable to buyers than a car that has an impeccable track record.

How to determine the fair market value of your Car?

There are many methods to assess the value of your vehicle. There are websites like Kelley Blue Book or the National Automobile Dealers Association pricing guide for an instant search for the worth of a car similar to yours. You could also explore websites like cars.com or autotrader.com to find cars available for sale with similar values to yours.

Alternately, you can engage an appraiser who is independent to look at conditions of the vehicle as well as the repairs made, its mileage, and age to determine an estimate of what the vehicle is worth in its current condition and in the event that it hadn’t been involved in an accident. While this method is costly in the end, it could provide the most convincing value to your insurance claimant.

In the end, you could drive your car to a dealer has a relationship with to find out whether they’re willing to provide you with the opportunity to trade your car in. If you own an Carmax near you You can bring your car in and they’ll make you a written request to purchase your car. Ask them to give you an estimate of what they would have offered for your vehicle had it not been involved in an accident.

A quick reminder: keep in mind that when you take your car to a dealer in the future, they will provide you with a value for your trade-in that is less than the retail or privately sold value. If you’re negotiating the value reduction of your vehicle it’s not a big deal however if you’re still trying to negotiate repairs or the value of your car due to the adjuster is trying to “total” the value and not just “total” it, this differing value is crucial.

How to negotiate the diminished value Of Your Car

If you have a thorough understanding of the decreased value of your car and you are able to send a demand note to the insurance provider asking for them to compensate the value. In your letter, you must describe what you’re seeking, and explain how you came up with that estimate. Include any evidence to support your argument of diminished value and remind the adjuster of the fact that the insured was present to resulted in the damage to your vehicle.

Once you’ve submitted your initial demand letters, the adjuster will reach out to you to present the initial proposal. Be prepared if the offer isn’t as high as you’d prefer. The adjuster can be asked to explain how they arrived at the dollar amount.

If the difference between what you saying the diminished value of your car is and the amount the adjuster believes that the decreased value of the car exceeds $2000 or 25 percent of the value your vehicle, then there’s a procedure in the SS 20-279.21 of the statutes for North Carolina which allows you to select an appraiser that will determine an estimate of the diminished value of your vehicle is. They will then evaluate their appraisals, and if they be in agreement, both of you as well as the adjuster are given fifteen days to contest the value of their appraisals.

If you do not object, then the appraiser’s appraisal is binding on you as well as the adjuster.