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Understanding Diminished Value Cases

Auto Insurance Long Beach CA

Collisions That Result In Diminished Value

In the event that you are involved in an accident that requires extensive repairs to be made, you may experience what is known as diminished value. Even if your car’s repairs meet the highest standards, your car is often deemed as less valuable by potential buyers.

While you may think that your insurer should be responsible for this problem, this will be directly dependent on a variety of factors. To determine whether or not your insurance company will compensate you for the diminished value of your vehicle, you will need to check state legislation or state court rulings. It will also be dependent on who was at fault for the accident.

So, what if you were determined to be at blame for an accident that left your car with a diminished value. In nearly all cases, when you are at fault for an accident, you would not be reimbursed for the diminished value of your car. However, in nearly every state, you can be reimbursed for the diminished value of your car when the accident is caused by the evident negligence of another driver. This is because part of restoring a victim of an accident includes restoring their car to its pre-accident fair market value.

However, since each diminished value case is unique, it is important to discuss these matters with your insurer, before an accident occurs. This will allow you to prepare ahead of time since you will know how your particular insurance company reacts to different situations involving cars with a diminished value after an accident.

Serving Long Beach, Los Angeles, and surrounding Southern California cities, contact Saferoad Insurance for all of your auto insurance needs. We will help guide you through the claims process to ensure that you receive the compensation that you deserve.