Diminished value
Encyclopedia
Diminished Value is the reduction in a vehicle's market value occurring after a vehicle
is wrecked and repaired, otherwise called accelerated depreciation. A reasonable person will not pay the same price for a wrecked, then repaired vehicle
, as they will for a vehicle
with no prior accident history. Even if the repairs are proper, the vehicle will still lose value. To collect diminished value after a car accident
, insurance
companies usually ask for a diminished value report. These reports are usually generated after an unbiased third party appraiser inspects and appraises the vehicle
and establishes the loss in value.
Some insurance companies use a formula called 17c to determine diminished value, this formula is inaccurate and generates values not consistent with current market data.
and inspection
conducted to measure the reduction in value of a motor vehicle
after an accident. These inspections are conducted after the vehicle has been repaired. Reports are usually created by an unbiased company for a minimal fee. This report is used when filing for a diminished value claim with an insurance
company.
Most reports include an assessment of the damage done to a motor vehicle, the quality of repairs, the market value of the vehicle before and after the accident. There is no set rule for measuring diminished value.
Vehicle
A vehicle is a device that is designed or used to transport people or cargo. Most often vehicles are manufactured, such as bicycles, cars, motorcycles, trains, ships, boats, and aircraft....
is wrecked and repaired, otherwise called accelerated depreciation. A reasonable person will not pay the same price for a wrecked, then repaired vehicle
Vehicle
A vehicle is a device that is designed or used to transport people or cargo. Most often vehicles are manufactured, such as bicycles, cars, motorcycles, trains, ships, boats, and aircraft....
, as they will for a vehicle
Vehicle
A vehicle is a device that is designed or used to transport people or cargo. Most often vehicles are manufactured, such as bicycles, cars, motorcycles, trains, ships, boats, and aircraft....
with no prior accident history. Even if the repairs are proper, the vehicle will still lose value. To collect diminished value after a car accident
Car accident
A traffic collision, also known as a traffic accident, motor vehicle collision, motor vehicle accident, car accident, automobile accident, Road Traffic Collision or car crash, occurs when a vehicle collides with another vehicle, pedestrian, animal, road debris, or other stationary obstruction,...
, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
companies usually ask for a diminished value report. These reports are usually generated after an unbiased third party appraiser inspects and appraises the vehicle
Vehicle
A vehicle is a device that is designed or used to transport people or cargo. Most often vehicles are manufactured, such as bicycles, cars, motorcycles, trains, ships, boats, and aircraft....
and establishes the loss in value.
Some insurance companies use a formula called 17c to determine diminished value, this formula is inaccurate and generates values not consistent with current market data.
Diminished value report
A diminished value report is a third party appraisalAppraisal
Economic appraisal is a type of decision method applied to a project, programme or policy that takes into account a wide range of costs and benefits, denominated in monetary terms or for which a monetary equivalent can be estimated. Economic Appraisal is a key tool for achieving value for money and...
and inspection
Inspection
An inspection is, most generally, an organized examination or formal evaluation exercise. In engineering activities inspection involves the measurements, tests, and gauges applied to certain characteristics in regard to an object or activity...
conducted to measure the reduction in value of a motor vehicle
Motor vehicle
A motor vehicle or road vehicle is a self-propelled wheeled vehicle that does not operate on rails, such as trains or trolleys. The vehicle propulsion is provided by an engine or motor, usually by an internal combustion engine, or an electric motor, or some combination of the two, such as hybrid...
after an accident. These inspections are conducted after the vehicle has been repaired. Reports are usually created by an unbiased company for a minimal fee. This report is used when filing for a diminished value claim with an insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
company.
Most reports include an assessment of the damage done to a motor vehicle, the quality of repairs, the market value of the vehicle before and after the accident. There is no set rule for measuring diminished value.