In California, driving a car is nearly a requirement. Almost everything, from traveling to work to grocery shopping, necessitates the use of a vehicle. Driving, on the other hand, can be dangerous because accidents do happen. When your car is involved in an accident, it may suffer from a condition known as diminished value. Continue reading to find out what it is, and then call The Law Offices of Larry H. Parker for a free legal consultation at 800-333-0000.
The term “diminished value” refers to how much a car’s value has dropped as a result of an accident
Even if a car is entirely repaired to like-new condition, it will lose value in most circumstances if it is involved in a car accident. A vehicle history record is easily obtained by buyers who want to know if a vehicle has been in an accident. According to research, when a buyer learns that an automobile has been in an accident, they are less inclined to pay the same amount as if the car had never been in an accident.
This is referred to as “stigma damage,” which means that even if the automobile is in fine condition, buyers are less inclined to purchase it since it has a negative connotation. This is referred to as “disappeared value” in California. If another motorist is to blame for your automobile accident, you may be entitled to recover damages, including the loss of the value of your vehicle. It’s worth noting that your own insurance carrier is unlikely to cover lost value, preferring to pay just for repairs.
How to work out damages for loss of value
The goal of estimating a vehicle’s lowered worth is to guarantee that you can recover more than simply the cost of repairs. You must be able to demonstrate that your car has lost value in order to be eligible for compensation for the difference between the fair market value of your vehicle before and after the accident.
The fair market value is the greatest amount a reasonable buyer would be prepared to pay — when the buyer is knowledgeable about the car’s condition and is not under any sales pressure. Let’s say your car was worth $11,000 before the accident, and it would cost $1,200 to repair it. Assume that your car has a fair market value of $8,000 following the repair.
In such instance, you’d be entitled to $4,200 in damages. This equates to $3,000 in lost value and $1,200 in repairs. Of course, this is only one example; the exact amount you owe will depend on your personal circumstances.
If you think you have a case and need to talk with an attorney, call The Law Offices of Larry H. Parker at 800-333-0000 to for a free legal consultation.