If you or a loved one have been involved in an accident and your motor vehicle is significantly damaged, it is important to understand that seeking compensation for your injuries involves being compensated for the diminished value of your vehicle. As such, if your vehicle has been damaged as a result of someone else’s negligence, the costs of both the repair of your vehicle and the diminished value of the vehicle may be recoverable. This section discusses and explores diminished value claims in North Carolina.
Diminished value claim seeks to ensure that the owner of the vehicle is compensated for the loss of value to his or her vehicle after an accident. In North Carolina, Diminished Value claims are calculated by comparing the difference between the fair market value (FMV) of your vehicle before your accident occurred and the depreciated value of your vehicle following the accident and the repair of your vehicle. However, very few people know about diminished value claims or how to make them. As such, it is common for accident victims to fail to assert any demand for compensation arising from their vehicle’s loss of value.
Diminished value is claims are an important part of seeking the compensation that you may deserve. If your vehicle has been damaged as a result of an accident, it is essential to remember that even if the car has been repaired that the value may still be diminished significantly.
Diminished value laws were created simply because buyers are less willing to pay for a vehicle that has been significantly damaged in a prior accident, as compared to a vehicle of the same make, model, and year, that has not been damaged in an accident. While the true measure of diminished value will vary depending on your own unique set of circumstances, the basic formula is measured as the difference in the value of the vehicle before the loss and the value after the loss, prior to or after repair. The standard rule for establishing the inherent loss is around 20-25% behind the “book value,” of the vehicle.
If your vehicle has been damaged as a result of an accident, it is essential to remember that even if the car has been repaired that the value may still be diminished significantly.
Shortly after any recovery for physical injuries you may have sustained in the accident, many questions will arise, including: What is the cost to fix my car? What is my car worth now after it has been repaired? How much value did the car lose as a result of the accident?
This section of our website strives to help ordinary people answer to their most complicated accident related question. Wallace Pierce Law is a Car Accident Law Firm focusing exclusively on representing car accident victims across North Carolina. This section is dedicated to discussing and exploring topics related to the diminished value of your property, including: assessing fair market value; appraisers; handling your claim; assembling demand packages; the appraisal clause; and determining practical expectations for your claim.