What do you think of Elon Musk? Have your say | No thanks
‘Diminishing’ returns
How is diminution in value because a car has been accident repaired affect the future value of a car? And what happens if it is claimed for on insurance?
Asked on 6 February 2010 by D.M., via e-mail
Answered by
Honest John
Three scenarios, all where for example, 'market value' of the pre-damaged car is £4,000 and the insurer can get £1,000 for it from a salvage company. (A) The repairs would cost £3,250. So the car gets written off and sold for salvage. (B) The repairs would cost £2,500. So the car gets repaired by the insurer's bodyshop. (C) The repairs would cost £2,500 But the owner successfully claims 'diminution of value' of £1,000. So the car gets written off and sold for salvage.
We give you the low down on how to save on insurance, little-known tricks and tips, what insurance groups mean and how to use insurance aggregators to beat insurers.
Insurance group finder and how to save on insuranceSimilar questions
I have a 2000 Corsa 1.7D GLS that doesn't look too tidy and with a high mileage but which has been very well maintained, with FSH and serviced every 5,000 miles. Everything works, it still drives like...
My son skidded his 2004 Renault Megane on the ice and hit a stone wall causing damage to the nearside front panel, headlight, bumper etc., enough to claim on the insurance together with the wall. We have...
During the past year my wife, a named driver on two policies, suffered 2 no fault incidents. In both incidents the other drivers paid for the damage. My wife out of courtesy informed her insurance company,...
Elsewhere on 
.jpg)
