Every year, thousands of cars are damaged in traffic accidents. According to the National Highway Traffic Safety Administration, a motor vehicle collision occurs every ten seconds in the United States. The Houston diminished value lawyers at Ramji Law Group have extensive knowledge in this area of law.
Long after your car has been restored and is in working order, there are typically costly ramifications. The value of a vehicle that has been in an accident is permanently reduced. When an automobile engaged in an accident sustains structural, aesthetic, or internal damage, its value is diminished. Even if the car is restored to its pre-crash state, it is still worth much less money than it was prior to the collision.
When attempting to sell or trade-in a vehicle, the diminished worth of the vehicle becomes apparent. The majority of states require full disclosure of any and all accidents in which the vehicle has been involved. Because most potential purchasers prefer automobiles that have never been in an accident, an owner of a vehicle that has been in an accident will receive much less money for his or her vehicle than if it had never been in an accident.
Three main types of diminished value apply to these claims. Not all three types of diminished value are always used when legally compensating individuals for the diminished value of their vehicles. These three main types of diminished value are the following:
Inherent Diminished Value
This type of diminished value or lost value refers to the loss of a vehicle’s market value. It is the most widely recognized and accepted form of diminished value and is also the most common basis upon which any supplemental forms of diminished value would be added.
Immediate Diminished Value
This type of diminished value refers to the difference in resale value of the vehicle because of an automobile accident.
Repair-Related Diminished Value
This type of diminished value refers to the depreciated amount of a vehicle as a result of improper or incomplete repairs, poor quality repairs, or items left un-repaired. Typically, the amount of repair-related diminished value is determined by the overall quality of the repairs administered.
Every major insurance provider and every state has paid out on diminished value claims. If your vehicle is involved in an accident that is not your fault, almost every state allows you to file a claim for lost value. Individuals who have uninsured motorist coverage on their policy may be allowed to file a lost value claim on their own policy guidelines even if the other party does not have insurance. A Houston attorney could help a person understand the diminished value type involved in a specific case.
First party insurance claims and third party insurance claims. First party insurance claims take place when individuals damage their own car and their insurance company pays the claim. In first party insurance claims, individuals can still recover the lost value of their vehicle assuming their insurance company does not specifically exclude coverage for diminished value. Third party insurance claims occur when a negligent driver damages another party’s vehicle and the negligent driver’s insurance company pays the claim. In third party insurance claims, all state courts generally support claims for diminished value as long as the loss can be proven.
Several factors may affect the calculation of your vehicle’s diminished value, including:
It is very important to keep in mind that every vehicle is different, and that the amount of diminished value will vary accordingly depending on make, model and current/prior conditions. A systematic calculation of your vehicle’s diminished value is necessary. An individual can also pursue a diminished value claim on his or her own by requesting that his or her insurance adjuster address the diminished value of his or her vehicle. However, unless that individual is trained to handle diminished value claims, his or her request will most likely be turned down by the insurance company. That’s why you should contact Ramji Law Group. Only the attorneys at Ramji Law have the expertise and experience needed to accurately calculate your vehicle’s diminished value following an accident.
If you or someone you know has been the victim of an automobile accident and is considering filing a claim of diminished value, don’t hesitate to contact Ramji Law Group. Call us or complete a free case evaluation form on our website.
There IS NO FEE TO YOU, unless there is a settlement. If you do not collect, Ramji Law Group bears the costs.
The initial evaluation is free of charge! If we take your case, we work on a contingent-fee basis — which means you pay us only if you receive a monetary reward or recovery of fees. Please, don’t hesitate any longer. Lawsuits must be filed before the statute of limitations in your state expires. You may have a valid claim entitling you to compensation for diminished value caused by an automobile accident. Act now, call a Houston diminished value lawyer TODAY!
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