Money Talks Monday (5/7/18)

Have you ever had the misfortune of being in an automobile accident where you were not at fault?

If you have not, and many who have, are not be aware of the full value of their rightful claim. Most people have never heard of a 'diminished value" claim and insurance companies are certainly not quick to make you aware of them. In fact, by far and large, they hope you are unaware of them. While most people know they are entitled to the full repair of their car and medical costs associated with treatment, most do not know there is an available claim called diminished value they are also, in most cases, entitled to receive.

A car damaged in an accident, if not totaled, is subject to diminished value; meaning the resell value or market value of the car has been compromised by the fact it was wrecked. Depending on the year and model of the car, often times insurance companies try to repair the car with after market parts, which do not hold the value of OEM (Original Equipment Manufacturer) parts. As the injured or claimant, you have the right to demand OEM parts be used to repair your vehicle. OEM parts do help the car to hold value, however; they do not return the car to its full resell value. A diminished value claim is designed to make the claimant whole by compensating him or her with the depreciated value of the car as reporting from Carfax and other agencies will report the VIN (Vehicle Identification Number) as a salvaged car.

If you are ever in such an accident, it is always best to insist upon OEM parts and file a diminished value claim. Typically, the payout of the claim, which you are rightfully entitled to, is 10-20% of the total repair cost of the vehicle. Making wise use of that claim's payout, you can use the money for the upkeep and maintenance on your vehicle to ensure it has optimal value when it does come time to sell or trade it. Keep this tip from Money Talks Monday in the back of your mind in case you ever find yourself in the unfortunate situation where you need to file such a claim. These claims are well-kept secrets designed to protect and make whole consumers. Check back next Monday for another useful tip in fundamental money management.