Insurance Related Diminished Value

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diminishedvalueNJSuppose your car was damaged in an accident. It was then repaired and the repairs were absolutely perfect. This car has still lost value since it is now perceived by any potential buyer as “damaged goods.” This type of loss in value is known as “inherent diminished value” as it applies regardless of the quality of repairs. There are two other types of diminished value as well which are related to the quality of the repair.

“Insurance related diminished value” applies when an insurance company did not allow for needed repair procedures in the claim or when they required substandard parts to be used in the repair. As an example, a car was damaged on the right front fender and the inner panels also suffered minor damage; the insurance company specified replacing the fender with an imitation fender (see Parts Information – Are They All The Same? and did not allow for any repair to the inner panels even though they are visible when the hood is open. The imitation fender and the uncompleted repairs will both diminish the value of this car.

“Repair related diminished value” applies when a repair shop was paid to perform needed repairs but did not do them correctly. For example, if a repair shop was paid to repair and refinish a door but the paint is dull or has visible sandpaper scratches, this car has suffered repair related diminished value.

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Address

Prestige Auto Body in Union County
7 South Avenue Garwood NJ 07027



tel: (908)789-2020
fax: (908)789-8457
email: prestige@goldcar.us



Business Hours

Monday: 8am to 5pm

Tuesday: 8am to 5pm

Wednesday: 8am to 5pm

Thursday: 8am to 5pm

Friday: 8am to 5pm

Saturday: 8:30am to 11am

Sunday: Closed

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