I was in a car accident and it was fixed. However, what happens to the value of my car if I want to sell it down the line? It is called "Diminished Value".
Hey everybody this is Andy Rosenberg. I’m here to help with your personal injury matters. An issue that comes up sometimes is if you own a car, and it’s a fairly new car, let’s say it’s a 2017 or 2018 car and we are in the year 2019 right now and you get into an accident. It’s not your fault and the car gets fixed and the other side is paying for the property damage to get it fixed. The problem that you have is that the car is not worth as much as what it was before the accident and that’s what’s called “Diminished Value”.
So, what we want to do is you want to make sure that you get enough money from the other side’s insurance to make sure you get the difference. So, as an example let’s say that the car is worth $15,000 before the accident. Now, after the accident, it’s worth $9,000 and they give you as a value of the car only $5,000. Well there’s a problem there because there’s a $4,000 difference between the value. So, you want to make sure you get that $4,000 from the other side before you settle the case because you are only going to be able to sell it for a lot less value since it has already been in an accident. That’s hence the word “Diminished Value”.
I hope that makes sense. It is a bit confusing but it comes up a lot. Again, if you found that worthwhile please do me a favor and like, comment or subscribe to my YouTube channel. In addition, check out AskAndyLegal.com as there is lots of valuable information on other topics.
Thanks, and have a good one!
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