What is the reduced value?
Reduced value is a term used in the automotive industry to describe how the car that was in the accident often appreciated less than if it were not in an accident. Although it has been properly repaired, the car will not have the same value on the market for the same sale as the car with the same model and the year that was not in an accident. As a result, the reduced value is the difference between the market value of the car if it is not damaged and the amount for which it is sold. Many insurance companies offer insurance companies that compensate for car owners for this depreciation in value if it was to blame.
When a person with a car insurance gets in an accident, the insurance company generally pays the person to use for repair. Although the car is repaired to the point where it runs smoothly and looks just the same as before the accident, the stigma is often attached to the car in the eyes of potential buyers. Thje concept is known as a reduced value, which is the amount of value that the car loses after it is involved nand the accident.
As an example of how this concept works, imagine a man who owns a car and gets in an accident. The car is repaired perfectly and the man decides to sell it at some point. The car of the same model and year is usually sold for $ 20,000 USD (USD). Once the owner reveals an accident to potential buyers, the best offer he receives for it is $ 12,000. In this case, a reduced value of $ 8,000, which is the difference between a normal market value of $ 20,000 and received $ 12,000.
The reason why there is a reduced value is that the buyer of used cars often hesitate to own a car that participated in the accident. Although repairs are successful, the idea that the car is somehow damaged is still persisted. Because the IPKOKUD is that car sellers that were in accidents have no choice but to sell a car with a discount.
Fortunately for the owner of the carThere is a way to get a reduced value. There are certain insurance contracts that allow protection against the loss of the value of the car involved in the accident. In addition to repair payment, these principles will also help balance the loss of value, provided that the policy holder has not been caused in the accident.