Diminished Value California: What Every Driver Should Know!

Sandra drove her car back to her home. The joy of riding her vehicle was matchless. She still has flashes of her uncomfortable shared ride in her subconscious mind. But it's time to forget all of that and start afresh. All this discomfort she had to deal with was because of that unexpected car accident. She was not at fault, still, she had to deal with so much. Finally, everything was sorted! 


After a month, Sandra decided to sell her car. However, the biggest surprise was waiting for her. The dealer told her she would not get what she was asking for because her car had lost value. It wasn’t due to the current condition of the car, but it was because it had an accidental tag in its history report. Sandra was shocked! She didn’t know, an unexpected accident could result in diminished value of her car in California. 


What is Diminished Value California?


Most car owners are unaware of diminished value California. It refers to a drop in the value of a car due to its involvement in an accident — even after it’s been fully repaired. In California, this is known as Diminished Value, and it can have a significant impact when you try to sell or trade in your vehicle.


Types Of Diminished Value


Immediate Diminished Value

Your car loses value on the spot of the accident before any repairs. It is known as immediate diminished value. 


Inherent Diminished Value

This is one of the most common types of diminished value. Here a vehicle loses value because it has been involved in an accident. No matter its has been repaired completely, it will lose its value.


Repair Related Diminished Value

Not all repairs are done the same way. This brings us to Repair-Related Diminished Value, a form of loss that occurs when the quality of repairs directly affects the vehicle’s worth. Firstly, we need to understand that not all faults are fully repairable. On the top of it, sometimes, auto body shops uses aftermarket products. These flaws are clearly visible in the car’s appearance, which not only affects its visual appeal but also raises questions about its functionality.


Recover Your Loss with a Diminished Value Claim in California

Don’t worry if your car has lost value in California, a diminished value claim allows you to seek compensation for the loss. This type of claim allows you to recover the difference between your vehicle’s market value before and after the accident, even if it has been fully repaired. This claim is filled against the insurance company of the at fault party. 


Eligibility Criterion for Diminished Value Claim California


To file for diminished value claim California, you need to meet the following criteria: 

  • It wasn’t your fault- you can only file for diminished value claim California, if the accident was not because of your mistake. 

  • Your vehicle should receive enough damages in the collision that it needs repair. 

  • Your vehicle is not declared total loss. 

  • You have a professional appraisal report depicting the before and after crash value of your car. 

  • You should file for diminished value claim California within 3 years from the date of the crash. 


In conclusion, a diminished value claim in California helps you recover the hidden loss in your vehicle’s worth after an accident you didn’t cause.

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