Every year, there are over 11 Million auto accidents in the US. While fortunately, the majority don’t result in severe bodily injury, most vehicles involved in an accident lose resale value.
Diminished Value, by definition, is the reduction in resale value an automobile suffers after a collision or damage. Car buyers, with the price being the same, will always chose an undamaged vehicle over a damaged and repaired counterpart. In order to sell the damaged and repaired vehicle, the asking price needs to be lowered. This reduction in market value is called Diminished Value.
Courts in multiple jurisdictions have decided that repairs could not bring back the vehicle to its pre-accident condition. In some states,
Unfortunately, most drivers are unaware of Diminished Value and seldom demand compensation for this loss. In most cases, insurers will attempt to settle the loss is value portion of the claim for cents on the dollar.
Most insurance carriers are currently using an erroneous and inaccurate, percentage based, formula called 17c. This bad formula takes a percentage of the vehicle's pre-accident value. Most valuations are capped at 10% of retail and exclude vehicles over 100,000 miles.
With the knowledge obtained from TV reports such as this
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