Q Tips – Diminished Value of Your Vehicle

Q Tips
Q Tips - Diminished Value
Another major question asked is what about the loss of the value of the car after it has been involved in an auto accident? Once the car is repaired after the auto accident what about the loss of the value of the car? When the car is traded in, the dealer will know it has been in an accident. Don't kid yourself into thinking the dealer will not know. They use resources like Carfax (www.Carfax.com), a website that records the history of the car. Also, most experienced car salesmen will know the subtle changes non-factory repairs will have on the automobile. The dealer will therefore depreciate the car at the time of trade in. This depreciated amount can be substantial! If Carfax reflects extensive repairs, even if the car looks new, there will be a reduction of the value for the damage.
 
The question then is, shouldn't the insurance company pay the difference in the value of the car called the diminished value? In the State of Florida, your insurance company, or the insurance company of the person who caused the damage, is responsible for the diminished value of the car. This may vary in different states, but in Florida, the insurance company is responsible. This rule applies even if the car is only a few weeks old, but has been in an accident, and repaired to "as new" condition. When the car is traded in, you will face a disheartening diminished value appraisal of the car.
Please note: The law constantly changes, and you can't be 100% confident in the information provided above,
but feel free to call our offices with any questions: 1-800-332-1992.