Accidents Damage The Value of Your Car
Surprised? Yes, it is true. Accidents not only incur physical damage to your car but also reduce its value. This is called the diminished value; the loss of the value of your car after it has been involved in an accident.
In addition, your car insurance company will not offer any coverage for the diminished value of your car. Searching over the internet for car insurance quotes even with diminished coverage is not advisable either, as most providers operate the same way.
So, the story goes like this: you have a brand new car but unfortunately the car gets involved in a crash. Your insurance company does all the needed fixes to your car and the car regains its original condition. The twist comes when is time to sell the car. The prospective buyers investigate the history of your car and finds about the accident and two things happens; either they won't consider buying your car at all or will be unwilling to pay a fair price and try to bargain for much lesser.
Now, the question arises, why won't the car insurance companies pay for the diminished value of your car? The companies do not feel that they require paying for the diminished value. The company pays for repairing the damage of the car after an accident but do not agree to pay for its lost value. In fact, insurance companies believe that offering the coverage of the diminished value for cars will cause premiums to rise by thousands of dollars, which would make car insurance unaffordable for many car owners.
However, there is some good news for car owners. Many consumers have gone to court to fight the denial of insurance providers to offer a diminished coverage for cars. Thus, in some states, insurance companies are required to pay for the diminished value.
So, next time your compare auto insurance quotes, make sure you choose the company that pays for the diminished value of your car. Some companies may have added the coverage in their current policy or may offer it as an additional coverage.
Check with your state insurance commissioner if diminish coverage is mandatory in your state
If you are ever denied a diminished value claim, you can seek the help from your state insurance commissioner.
In addition, your car insurance company will not offer any coverage for the diminished value of your car. Searching over the internet for car insurance quotes even with diminished coverage is not advisable either, as most providers operate the same way.
So, the story goes like this: you have a brand new car but unfortunately the car gets involved in a crash. Your insurance company does all the needed fixes to your car and the car regains its original condition. The twist comes when is time to sell the car. The prospective buyers investigate the history of your car and finds about the accident and two things happens; either they won't consider buying your car at all or will be unwilling to pay a fair price and try to bargain for much lesser.
Now, the question arises, why won't the car insurance companies pay for the diminished value of your car? The companies do not feel that they require paying for the diminished value. The company pays for repairing the damage of the car after an accident but do not agree to pay for its lost value. In fact, insurance companies believe that offering the coverage of the diminished value for cars will cause premiums to rise by thousands of dollars, which would make car insurance unaffordable for many car owners.
However, there is some good news for car owners. Many consumers have gone to court to fight the denial of insurance providers to offer a diminished coverage for cars. Thus, in some states, insurance companies are required to pay for the diminished value.
So, next time your compare auto insurance quotes, make sure you choose the company that pays for the diminished value of your car. Some companies may have added the coverage in their current policy or may offer it as an additional coverage.
Check with your state insurance commissioner if diminish coverage is mandatory in your state
If you are ever denied a diminished value claim, you can seek the help from your state insurance commissioner.
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