Did you claim your car’s diminishing value?

It is very important that you know how much your car is worth before and after you face an auto accident. You can evaluate the amount of compensation or reimbursement that the insurance company will pay you. Your car will obviously not be worth as much and will hold a diminished value.When you have had a car accident you will see that what you think your car is worth will be completely different from what your insurance company thinks. For a totaled car the insurance company would pay only the actual cash value and not what it takes to replace the car. The process in which the actual cash value is determined differs from one company to the other. Being in an accident means damage to your car and hence the value of your car automatically reduces making it difficult to sell it off. Some insurance companies have fixed car repair shops that you have to go to if you want them to reimburse the repairing costs of your car. Spare parts to be used in repairing your car must be carefully chosen. If you are using second hand spares, you might face problems later when you try to sell your car or even try to get additional coverage for it. Cars once repaired have minimized chances of being sold since people do not want to buy cars that have potential future problems. In many states the car owners are required to disclose accident history (if any) to the potential buyers. Many a times, the claimant may not be aware about the compensation they will receive for diminished value. The diminished value can be something around 18%. It also largely depends on the state that you live in. It is the duty of the insurance company to let the insured know about a compensation for the diminishing value of his car. However, it is also the concern of the insured to enquire about the same. Several states require you to fully disclose the history of the vehicle, whether it has been involved in an accident or if it had subsequent repairs. This will help determine the diminishing value of the vehicle. In the unfortunate event that your car gets involved in an accident, you have 2 choices 1.    You get your car repaired and hope no one finds out about the damage when you try to sell off the car or 2.    Fight their insurers If you want to fight their insurers you must first find out how much the car would be worth before the damage. After you have found the value get in touch with the agent who sold you the policy. You’ll have a tough time if it is a captive agent. If it is an independent agent it is more likely that he will fight for you.