The Automobile Insurance Blog

Things you need to know about Diminished Value

Diminished value is a financial loss which can be compensated. This commonly occurs in many claims from car accidents, but many owners don’t know that they are entitled to cash in addition to repairs done to their car. The basis of this claim is the insurance carrier’s duty to restore the position that the owner of the damaged car has before the accident. Also this includes losses sustained from wrong repairs. If their car sustained structural damage and was repaired with cheap parts, the market value of the car will decrease, thus the value diminishes. Now you know about diminished value and how it could be compensated, don’t be fooled about getting your car repaired with cheap parts or without additional cash payment.