Wrecked Car Value -
Diminished Car Value
Wrecked / Diminished car value occurs when, as a result of accident damage, the value of a car is reduced, even though the vehicle has been repaired. In certain cases this reduction in wrecked car value can be as high as 15%.
For those motorists planning to keep their car for a lengthy period, having a diminished car value should not be too great a concern.

However, given that car history checking is increasingly becoming standard procedure in the used car buying market, anyone who plans to sell their car and upgrade at any time in the short to medium term may find themselves hit by diminished car value.

This is because potential car buyers may not be prepared to pay as much for a car that has sustained impact damage, no matter whether it has been satisfactorily repaired or not. Therefore, a vehicle’s accident history may be used as a bargaining tool to bring the asking price down.
It may be argued that wrecked car repair damage can impact on the reliability and safety of a car. In particular, repairs to the chasis and accidents which have resulted in the deployment of airbags and flood damage.

While fully comprehensive insurance policies will ensure that damage to a car is rectified, there is generally no compensation for the resultant potential loss in value (diminished car value).

If, in future, compensation for loss in value as a result of accidental damage were to become included as standard in car insurance policies, premiums would no doubt skyrocket.
sitemap
terms of use
about
sitemap