According to Eimantas Čep, lawyer of the professional association of lawyers AVOCAD, the amount of damage to a car during a traffic accident is usually understood as the costs required for repairs. “However, when buying or selling a car, a lot of attention is paid to whether the car has been involved in a traffic accident in the past and whether it has been handled or not, and if the fact of the car accident is confirmed, the aim is to negotiate the price of the car,” the lawyer points out.
Therefore, according to Eimantas Čepos, one should not forget that there is also another form of damage – the reduced market value of the car due to the damage caused during the traffic accident. “And this is not only the negotiating position of the car seller or buyer, but the amount is determined clearly according to the criteria established by the legislation,” emphasizes the lawyer.
According to the legislation in force in Lithuania, the decrease in the value of goods is defined as an irreversible decrease in the value of a vehicle due to repair, painting or unremoved damage (when parts of the vehicle are technologically repaired by restoring their functional properties, when the technological process of repair may affect the physical, chemical, aesthetic condition or lifetime) including a change in the vehicle’s history due to the fact of the event compared to the vehicle’s pre-damage value.
The decrease in the value of goods, like normal damage, must be compensated by the tortfeasor’s civil liability insurance. “Unfortunately, there are no clear indications in the existing legal regulations that the person injured in a traffic accident has the right to demand from the insurer also the aforementioned decrease in the market value”, observes the AVOCAD lawyer.
According to him, due to the lack of information, not all insurance companies offer compensation for the reduced market value of the car as a result of the car repair works, in addition to the normal damage compensation. “If it is offered to compensate for the decrease in the mentioned value, the amount offered is not always calculated objectively. Therefore, even after receiving the insurer’s offer, it would be worthwhile to take care of the conclusion of an independent appraiser, since the amount compensating for the decrease in the market value can be quite significant and is calculated in thousands of euros”, notes E. Čepas.
True, according to the lawyer, it should be noted that the loss of market value is calculated for vehicles no older than 5 years from the first registration. “Since this compensation is calculated for relatively new cars, which means for cars of a correspondingly higher value, the amount of compensation can often be quite significant,” notes the lawyer.
According to the current legal regulations, the amount of damage caused to property during a traffic accident is determined by the responsible insurer, based on the assessment reports of authorized persons and property, documents that prove the circumstances, fact and extent of the damage, photos, videos.
The Supreme Court of Lithuania emphasizes the obligation of the insurer to evaluate all the documents submitted to him and to assess all the circumstances, including the documents proving the amount of the damage provided by the injured third party, in order to determine the amount of the damage in such a way that the injured person is compensated for the damage in full, as much as this allows the mandatory rules governing civil liability insurance.
The full principle of compensation for losses requires that the damage caused to a person, as far as it is objectively possible, is determined not in a standardized way, but in an individual way. In the event of a dispute regarding the amount of the insurance benefit between the person demanding payment of the insurance benefit and the insurer who insured the civil liability of the vehicle owner with compulsory insurance, the amount of the insurance benefit must be proven in each specific case.
In summary, in order to ensure fair compensation for damages after a traffic accident, it is important not only to rely on the offer of the insurance company, but also to be careful and active in defending your rights – do not forget the possibility of demanding compensation for the reduced market value of the car and, if necessary, contact independent experts who can help objectively to assess the damage and ensure that you receive all the compensation you are entitled to.
window.fbAsyncInit = function() {
FB.init({
appId: ‘117218911630016’,
version: ‘v2.10’,
status: true,
cookie: false,
xfbml: true
});
};
(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) {
return;
}
js = d.createElement(s);
js.id = id;
js.src = “https://connect.facebook.net/lt_LT/sdk.js”;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));
#people #claim #compensation #insurers #reduced #accident #Business
**Interview with Eimantas Čep, Lawyer at AVOCAD Association**
**Interviewer**: Thank you for joining us today, Eimantas. Can you start by explaining what diminished value is in relation to car accidents?
**Eimantas Čep**: Certainly! Diminished value refers to the reduction in a vehicle’s market worth after it has been involved in a traffic accident, even if all necessary repairs have been completed. When cars are bought or sold, prospective buyers take prior accidents into account, often leading to a decrease in the selling price.
**Interviewer**: That’s interesting. So, despite being repaired, a vehicle’s history can affect its value?
**Eimantas Čep**: Exactly. The perception of a car that has had accidents can significantly impact its marketability. It is crucial for both buyers and sellers to recognize this diminished value as a legitimate form of loss.
**Interviewer**: What does Lithuanian legislation say about this issue?
**Eimantas Čep**: The law defines any irreversible decrease in a vehicle’s value, which could arise from repairs, painting, or unaddressed damages. Essentially, when the car’s condition is altered due to an accident, this impacts its future economic value compared to its pre-accident state.
**Interviewer**: Is there a way for victims of such accidents to receive compensation for this diminished value?
**Eimantas Čep**: Yes, but there are challenges. The law stipulates that the tortfeasor’s civil liability insurance should compensate for this reduction in value. However, current regulations do not explicitly assure victims the right to claim diminished value from insurers.
**Interviewer**: That must be frustrating for many car owners.
**Eimantas Čep**: It is. Many insurance companies might not offer compensation for the diminished value of a vehicle following repairs, or if they do, the amounts can be calculated subjectively. This is why getting an independent appraisal is advisable—it can often reveal amounts that are much more reflective of the actual diminished value.
**Interviewer**: Is there a cutoff regarding the age of a vehicle that can claim such compensation?
**Eimantas Čep**: Yes, typically this applies to vehicles that are no older than five years from their first registration. Since newer cars have higher values, the compensation amounts can be substantial.
**Interviewer**: What steps should someone take if they find themselves needing to file a diminished value claim?
**Eimantas Čep**: Firstly, they should document all evidence related to the accident and repairs thoroughly. This includes photos, repair invoices, and any other relevant documentation. Consulting with an independent appraiser can also help assess the true diminished value. it’s essential to approach their insurance company promptly and, if necessary, seek legal advice to navigate the claims process effectively.
**Interviewer**: Thank you for sharing your insights, Eimantas. It’s clear that understanding diminished value is essential for any car owner involved in an accident.
**Eimantas Čep**: Thank you for having me. It’s crucial to inform the public about these issues so that they can protect their financial interests.
