Most times when people talk about car appraisal services, it is always in reference to services such as a pre-purchase or pre-sale inspection. Sometimes, the appraisal is carried out for legal purposes or to get an insurance policy on the car. Many, however, do not know much about diminished value appraisal. Here is some light on it
Diminished Value Appraisal – What Is It?
Diminished value appraisal is a type of car appraisal services that focuses on finding the difference in a car’s value before and after it has either been involved in some accident or has undergone major wear and tear.
Why Perform One?
There are several reasons why a diminished value appraisal can be carried out. The three prominent ones are
- In The Event of an Accident
If your car was involved in an accident that wasn’t your fault, then you can file for a diminished value claim with the insurance company (ies) of the party (ies) responsible for the accident.
To arrive at a diminished value for your car, you would have to hire a professional who renders car appraisal services. He will determine the worth of your car before and after your car has been involved in an accident. The difference in these values is what the responsible party’s insurance company will then pay you. This value is usually calculated after repairs must have been carried out on the car.
- For Insurance Purposes
A diminished value appraisal can also be carried out on a car in order to account for depreciation arising from damages or general wear and tear. Such appraisal is necessary in order to make the appropriate adjustment to your insurance policy.
If you present your insurance company with a diminished value appraisal, they will be obligated to review your policy and make a reduction in the premium you pay for it.
- For Sales Purposes
In the event that your car has been in an accident and you want to sell it, it would be wise to first of all conduct a diminished value appraisal. This, amongst other things, helps you to determine the correct, current value of your car considering the quality of repair it has undergone.
The correct value prevents you from underselling your assets and also facilitates a quicker sale. Many buyers often request that an appraisal be conducted before they make the purchase. With your appraisal report already in hand, you can skip this process and wrap up the deal faster than expected.
Now, you have an insight into what diminish value appraisal is all about. So whenever you need to evaluate a car that has been in accident, you know which car appraisal services to spring for.
It is important to note that just like in the case of other car appraisal services, whoever you pick to help you carry out a diminished value appraisal must be a professionally qualified car appraiser.