Diminished Worth Calculator: What Do You Think Was You Recently Involved in a Car Accident? If so, right now you’re probably getting a million and one questions swirling inside your head. From “Who would the police say was responsible for the crash? “To” Does my car insurance provider increase my rates? “You’re going to find yourself beyond reason stressed out.
One of the biggest questions you’re left to ask is “How much is it worth my car now that it has been in an accident? “It can be a difficult question to answer. Yet you will be able to calculate how much your vehicle is worth in the wake of an accident, by using a reduced value calculator.
This being said, the idea of reduced value and the role that it plays in the value of your vehicle after a crash can be hard to grasp. You should take the time to get a better understanding of it so that you won’t be shocked to hear how much your car later fell in value. Learn more about decreased value, and see below how a decreased value calculator works.
Which is Low Value?
It can be difficult to use a reduced-value calculator to find out how much a car is worth. Yet understanding what decreased value is, and how it can impact a car, is not all that difficult.
The reduced value — or “decrease in value” as it is often called — is the difference between what a car is worth before it was involved in an accident and what it is worth after an accident. Diminished interest, as you can think, is something that is very important for a person who owns a vehicle involved in a car accident.
Diminished interest is not the same thing as depreciation, it’s worth noting. Unlike reduced value, depreciation refers to the amount of value that a car loses over time. Whether or not a vehicle was ever involved in a traffic accident has nothing to do with it.
The Various Diminished Value Types
Now that you know what a decreased value is, you should be conscious that there are many different forms of decreased value. You will get acquainted with each one and find out which form of Diminished Value Calculator is currently affecting your car.
Here are the three major diminished value forms and a little more detail about each:
Inherent Diminished Value:
When you hear people speak about diminished value, they’re talking about this form of diminished value more often than not. It is the most common form of decreased value, which refers to the value a vehicle loses after it has been repaired as a result of its history of damage. When it comes to intrinsic reduced value, it is presumed that after an incident the necessary repairs were made to a vehicle and that those repairs were properly done before a vehicle was placed back onto the road.
Immediate decreased value:
Unlike the intrinsic decreased value, the immediate decreased value is a decreased value measured directly after an incident occurs. This applies, as the name suggests, to the difference between what a car was worth before an accident and what it would be worth if it had the requisite repairs. It is actually the least common form of decreased value because most car owners and auto insurance providers do not measure decreased value until after repairs to a car damaged after an accident has been made.
Repair-Related Diminished Value:
If you’re trying to measure your vehicle’s repair-related decreased value after an accident, it’s usually because shoddy work has been performed on your car during the repair process. This form of decreased value is used when sections of the aftermarket are used to restore the damage done to a vehicle or when a damaged car is painted in a slightly different color than it was before an accident occurred. This applies to the difference between what a car was worth before an incident and what it’s worth after having carried out low-quality maintenance on it.
How to Use a Decreased Value Calculator
At this stage, ideally, you should have your head wrapped around what decreased value is and why it is important to know where the decreased value for your post-accident vehicle lies. Now comes the tricky part: wrap your mind around how to use a reduced value calculator to get the real reduced value.
A reduced value calculator is based on a complicated formula called 17c and is used by auto insurance firms to measure the decreased value. This was first used in a court case involving State Farm in Georgia and has ever since been used as part of the reduced value calculator.
There are four steps that auto insurance firms take by using the formula 17c as part of their reduced value calculator. That is how they measure the decreased value of your car following an accident:
