Repairs to a motor vehicle after a collision are a foregone conclusion unless the insurer determines it a total loss. Unfortunately, a person’s vehicle is never the same despite having it repaired by a trustworthy professional. It often feels like it drives differently, the brakes don’t feel like they work the same way they did prior to the collision, etc. In cases where the vehicle is totaled by the insurance company, the owner rarely feels that he or she has been compensated for its true value.
Although personal injury lawyers are not property damage lawyers per se, they realize that vehicular damage is associated with the harm that has been done to the person. As a result, they can ensure that the client is compensated for their injuries as well as the cost of repairs that may be required. When litigating personal injury cases, the term “diminished value” often arises during court proceedings. An experienced personal injury lawyer in Red Deer will be successful when arguing this concept in court. They understand the intricacies of the law and know how effective strategies work when backed with strong evidence. That is why it is essential that you hire the services of a lawyer when you want to file a claim for damages.
3 Types of Diminished Value
Based on the expertise of numerous Alberta auto repair specialists as well as evidence presented by witnesses in past personal injury cases, there are 3 types of diminished value that often arise in these matters:
Inherent diminished value – you’ll often hear the terms “stigma diminished value” in personal injury cases when a vehicle has been damaged in a collision and how it can have a negative impact on its fair market value. As a result, when one of two identical vehicles have been in an accident, the owner of the damaged vehicle will have to accept a lower price when selling it compared to the vehicle that hasn’t been damaged.
Insurance diminished value – when an insurance company decides to use generic rather than name brand parts for the required repairs on a vehicle that’s been in an accident, this is referred to as “insurance diminished value.”
Repair-related diminished value – when the repairs on an accident-damaged vehicle have been completed, some of the factors that must be taken into consideration include:
• location of damages
• nature, severity, and type of damages
• “prestige” or uniqueness of the vehicle
• quality of repairs that have been done
• vehicle age
Although accelerated depreciation and diminished value are relatively new types of damages that are now pursued in personal injury court cases, they will evolve over the ensuing years. For additional information regarding these damages, consulting with a personal injury lawyer is advised.