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Something You Should Know About Diminished Value

What will you do if you have a million dollar worth of car and you bump to a collision unfortunately? Who you think will be covering all the expenses to make your car look like new once again? Well, if you have credible insurance, they’ll help in repairing all damages and cover all expenses without fuss. Good thing is, there are many insurance services that are offering clients with many reasonable ways of assisting clients during uncertain events. On the other hand, if you don’t own a reliable car insurance to take care of your needs, then it can surely make your car look like 10 years older after the accident along with a diminished value.

You might be wondering what is a diminished value? The reduction of car’s worth after it is repaired and wrecked is the simplest definition for diminished value. Most of the time, it is not the responsibility of insurance company to pay for your car’s diminished value but, there are various insurance holders who are claiming that it’s the responsibility of their insurance provider to pay the car’s diminished value after the accident.

As an example, you’ve bought yourself a new car. After you ride it down the road and involved in a terrible accident, your car insurance is going to cover for the repairs of the car in order to make it look like a new one. However, you’ve decided to sell it later on so you can get a new one and overcome the traumatic experience you’ve felt. Then apparently, as you are moving along to hit a sale, your buyer is not willing to pay anything close to the amount your car is worth it. Well, this is all because of the reality that the buyer knows the history of your car.
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Worst case scenario, your buyer will abandon the sale and leave you redoing the process all over again. So, it’s obvious that you’ve suffered the effect of diminished value.
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The real reason to why insurance providers won’t lift their fingers to diminished value of the car is that, it is not their duty to repair the car to keep its condition before the accident. Yes they can be of help in fixing the damages but not on the loss value. What’s more, to include diminished value to the insurance coverage, customers will probably be paying thousands of dollars more on their premium.

To be able to be covered for this, make sure to thoroughly read the insurance policy you’re buying. When in doubt, don’t hesitate to ask questions so you can avoid problems down the road.