Having acquaintances in the Ukraine/Crimea area who are sending us info from a non journalist prospective, it is interesting to see the differing viewpoints which are expressed by various factions in the US. We are NOT making political statements here nor taking sides, but just an interesting point to watch...how opinion and preconceived ideas shape the way people think and talk about this situation.
Much the same with Diminished Value...the loss of value created by the "stigma" associated with your car having been in an accident. You, the vehicle owner, are shocked by the fact that your car has been wrecked and repaired and any prospective purchaser of your car will likewise be shocked. So much so that they will not be willing to pay as much for your car as one which hasn't been in an accident.
Now the differing opinion: the insurance company, having paid for the repair of your car (to industry standards I might add!) is ABSOLUTELY sure that your car is perfect in every way...including the original value.
Is this right or wrong? The insurance company has the preconceived idea that your car has retained ALL of its pre-accident value...but what about the guy who wants to buy your car after it was wrecked and repaired? It doesn't take a rocket scientist to figure out that the buyer won't pay as much for your car. Bingo, Diminished Value!
So the preconceptions of value come into play here. One side (insurance) thinks all is OK, the other side (buyer) knows that the car has real "issues". Who is correct?
Short answer: None of the above!
The car has most likely been repaired to industry standards. Is it as good as it was built at the factory? Probably not, shops just don't have the fixtures, automated computer welding equipment, etc. which is available at the factory. Still, when making repairs, shops have techniques which satisfactorily replicate the strength and functionality of the original car. With this in mind, it is doubtful that the car will have "issues" and should be as good as it once was. But it is not PERFECT!
What comes into play here is the conception that the car is not as good as an undamaged/repaired vehicle.
Regardless of the post repair condition of the car, perfect, near perfect or somewhere in between, the prospective buyer WILL NOT PAY AS MUCH FOR YOUR CAR. PERIOD! End of story!
Don't allow a situation such as this take money out of your pocket. A car represents a major investment by you and as in any investment, wise management is necessary. Diminished Value is (in most cases) a recoverable loss. Contact us for a FREE evaluation of your loss. We'll give you the straight scoop!