Decline in value and depreciation are different. Depreciation is the normal decline in the value of a car due to wear and tear over time. However, diminished value is the actual or perceived reduction in the market value of a vehicle after suffering an accident and suffering damage. Diminished value is different from depreciation, which refers to a fall in value over time.
Depreciation and decline in value are different. Depreciation is the fall in value of your car over time. Even if your car is repaired with the manufacturer's original parts, the value of the car will still be lower than it was before the accident. WHY HIRE DVCHECK FOR YOUR CLAIM? A reduced value claim is intended to compensate for the difference between the value of the car before the accident and its lower value after the repairs have been made.
Depending on the circumstances, you may be able to file a reduced value claim to help you recover the loss in value of your car, so that you recover after the accident. As a general rule, you can only file a reduced value claim when the accident was not your fault. A notable exception is the state of Georgia, where you can claim a decrease in value in both at-fault and no-fault accidents. Georgia law requires insurance companies to assess the decline in value in all car claims.
Generally, if the accident wasn't your fault, you would file a reduced value claim with the at-fault driver's insurance company; it's covered by your liability for property damage. You may be wondering why you can't claim the decrease in value under your own insurance policy. Most people's insurance policies have a reduced value exclusion that indicates that they are not covered. Comprehensive and collision coverage pays only the amount needed to repair or replace the damaged vehicle and does not cover the decrease in value.
First of all, it's important to understand what exactly a diminished value claim is. The decline in value of a vehicle or your car basically means the difference between the market price of your car before the accident and after the accident. It's important to understand that filing a diminished value claim isn't easy, even though it has simple rules and regulations; nothing is as easy as it seems. IF YOU WERE AT FAULT AND CAUSED THE CAR ACCIDENT, YOU WILL FILE A CLAIM WITH YOUR OWN INSURANCE COMPANY, PROVIDED THAT YOUR POLICY HAS LOW-VALUE COVERAGE.
The best way to prove your claim is to get a diminished value appraisal prepared by a licensed independent appraiser who is an expert in diminished values. You must file a reduced value claim when you have a car accident in which the other party is at fault, to recover the decline in value of your car. In most states, you have at least two years to file a diminished value claim, but you don't want to wait until the last minute. If your insurance company denies your reduced value claim, gather documentation that shows that you are owed money.
However, there can be a wide range of situations within these guidelines and you should not assume that their value has not decreased, as you could lose the opportunity to file a claim. The nature of the damage, the age of the vehicle and the quality of the repairs performed are factors when calculating the diminished value. You may be entitled to receive a check from the at-fault party's insurance company for the decline in value of your vehicle. This is another factor that can help you decide whether or not you want to file a diminished value claim.
A reduced value claim is intended to compensate for the difference between the value of the car before the accident and its lower value after the repairs have been made. The best course of action is to get an appraisal of your diminished value and file a decreased value claim. Understanding how insurers calculate diminished value will help you negotiate optimal compensation. If you drive an old vehicle or a car with a lot of mileage, you may not get anything out of a reduced value claim.
Be sure to check the laws of the state in which you currently reside and to calculate the diminished value claim in South Carolina. . .