The aftermath of an auto accident involves understanding that a lot has changed. One of the things that is different now is the market value of your vehicle. Even with repairs, it will never be worth as much as it was before the event. By knowing what the car diminished value happens to be, you can consider what the next actions should be. Here are some of the ways that information will make a difference.
Preparing to File a Claim
One of the more common ways to put diminished value to work is in filing a claim for the difference between what your automobile was worth before the accident and what it’s worth now that the repairs are completed. If the difference is significant, it makes sense to file a claim for diminished value with the responsible party’s insurance provider.
Keep in mind that if you are the one who was responsible for the accident, filing a claim for the diminished value of your vehicle is out of the question. You will simply have to live with that difference in value.
Making Adjustments to Your Auto Insurance
When the diminished value is considerable, it may be worth the time and effort to take a second look at your car. That’s especially true if the benefits are based on either the replacement value or the actual cash value of the vehicle itself. You may find that what’s in place is more than you need now.
If so, see this as a chance to do more than adjust the current policy type. You may want to look at other forms of auto insurance, included agreed value coverage. Opt for the one that provides you with the best protection while also offering a premium that fits well into your budget.
Settling On a Sale Price For the Car
Now that the car is repaired, you’re thinking about selling it outright. This can be a chance to recoup at least a little of the car diminished value. Depending on market conditions in your area, and how much of a demand exists for cars of the same make and model, you may be able to ask for a little more than the current market value.
Knowing both the current value and the diminished value provides the basis for coming up with a sale price. Keep in mind that you still want to disclose that the car was in an accident, and what sort of repairs were made. Even with that knowledge, you may come across a buyer who is willing to pay what you’re asking.
Making Sure the Assessment For Taxes is Still Within Reason
While not the case in every jurisdiction, having proof of the diminished value may allow you to seek an adjustment on the worth used to assess taxes on the vehicle. When it’s time to renew the tag each year, it pays to know the base figure that the assessor uses. If the car is no longer worth that amount, it is possible to file a review request and see what can be done. An appraisal by a professional that confirms the loss in value may be enough to be granted an adjustment.
Remember that you always want the diminished value to be identified by a certified appraiser. Doing so will ensure the figure is helpful to you in a number of scenarios.