Information About Diminished Value Claims For Car Owners

Auto accidents can cause major damage to your vehicle in an instant. Despite auto accidents being extremely common occurrences, there are still many pieces of misinformation that can cause a person to have the wrong assumptions about repairing and restoring their vehicle. In particular, car owners will often fail to consider the diminished value of the vehicle after the accident.

Myth: Repairs Will Fully Restore Your Vehicle

It is often assumed that the value of the vehicle will be fully restored after it has undergone repairs. Yet, this is not usually the case as a vehicle with a history of major repairs is far more likely to receive a below-market valuation. Additionally, many repair centers will report the work that is done to the vehicles coming through their facility to third-party services, which can allow individuals to verify the repair history of your vehicle before they choose to buy it.

Myth: Diminished Auto Value Coverage Is Never Provided

Protecting yourself with insurance that is designed to cover the losses from diminished value claims can be important for giving yourself the best chances of receiving all of the compensation that you may be owed. The requirement for this type of coverage along with the diminished value rates can fluctuate according to the local laws and regulations. If your insurance does not currently offer this type of protection, you may want to upgrade to a policy that it better developed in terms of diminished value and other complications from the auto accident.

Myth: Your Own Insurance Will Always Pay For The Diminished Value Claim

It should be noted that the insurance provider for the party that was responsible for the accident and diminished value will be the ones that are responsible for making these repairs. If you have a comprehensive policy or one that covers uninsured drivers, there can be instances where your own insurance may cover these losses, but this will depend on the details of your policy.

Myth: Diminished Value Claims Are Only Applicable For Classic Or Collector Vehicle

While classic or collector cars can be particularly vulnerable to losing value after an accident, this is a problem that can occur to any vehicle after it has been through an accident. As a result, individuals should avoid assuming that they will not be entitled to this compensation due to having a newer vehicle. If you are unable to understand or find the section of your policy that covers diminished value claims, your insurance agent will be able to effectively explain the coverage you enjoy from this consequence of a vehicle being in an accident.

Contact a service, like Chicago Auto Appraisers, for more information.