What is Diminished Value? In Layman’s terms, Diminished Value is the immediate loss of value your vehicle suffers due to an accident even when your vehicle has been repaired. This loss of value is created by 3 Stigmas and damage that can not be restored to pre-loss condition. Inherent Value is due to Stigmas of collision history, perception of quality of repairs, concerns of future problems related to unseen kinetic damage. Repair Related Diminished Value occurs when the damages are not returned to pre-loss condition. missing labels, poor repairs, inability to replicate incorrect estimates, factory processes, incorrect estimates, etc.
Do I Have Diminished Value? If your vehicle has been in an accident and you have over $500 in repair costs, you’ve suffered some form of Diminished Value.
Do I Have a Diminished Value Claim Worth Pursuing?
* If you are buying or leasing your vehicle.
* Your Vehicle has a estimated Retail Value of More than $7500.
* Someone Else Was at fault in the Accident. (Unless you live in Georgia or Kansas)
* The At Fault Party Has Insurance. (Unless You Live in: Alaska • Arkansas • California • Delaware • District of Columbia • Georgia • Hawaii • Illinois • Indiana • Louisiana • Maryland • Mississippi • New Jersey • * New Mexico • North Carolina • Ohio • Oregon • Rhode Island • South Carolina • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia, then you may possibly file under your own Uninsured Motorist Coverage.)
* If you have more than $500. in Damages and there was an actual collision. ($700 in damages from someone scratching your paint normally won’t be worth pursuing.)
* Your Car is a 2001 or newer.
* It is still within your state’s statute of limitations to file a claim.
* You haven’t signed any paperwork that prevents you from filing a claim.
* Your vehicle has not been in a previous accident where the damage was more or worse than the latest damage.
* Your vehicle has never been declared a Total Loss or has a Branded Title.
What Do I need in order to file a claim for Diminished Value?
You can actually just ask for diminished value and sometimes the insurance company will make you an offer. It will be based on their numbers and their appraisal and you’ll probably receive pennies on the dollar (if anything) of what your actual loss is. The best way is to have a licensed appraiser prepare a Diminished Value Report showing the loss of value to your vehicle.
Is there anything I need to know when considering an Qualified Appraiser?
Yes… There are a lot of pitfalls when considering who to trust. Here’s a few things to watch out for.
- Don’t waste your money on an “Instant Diminished Value Report”. Either the Insurance company won’t see it as a valid report, or in most cases it will be designed to be so low that they will immediately say yes to the amount.
- Beware of the Attorneys and “DV Companies” out to take care of the complete process for you. Some are attorneys that will charge you a huge contingency fee and may tack on “incidentals” such as appraisals, inspections and expert consultation fees that may add up to more than what your claim was. I’ve heard several horror stories from clients of these companies charging as much as $1200. for an appraisal, and billing it as an “incidental” after the claim was settled.
- Many appraisers, including the insurance company’s appraisers, may use a formula such as the Formula 17c, or a close version of it. This Formula has been proven to not be correct and has been banned for use in some areas.
Why Should I Choose LOSSVALUES?
- USPAP Compliant Appraisal
- Unique Appraisal Narrative is written by a Credible State Licensed and Certified Vehicle Appraiser, most online auto appraisers are not licensed by any government entity.
- Appraiser has a minimum of 25 years experience in the automotive industry.
- 3rd party documentation. In cases of frame damage, we use documentation from the National Auto Auction Association to provide evidence of the loss of value.
- Each vehicle is assessed on its on merits, not generalized.
- An actual auto appraiser determines your pre-loss and post repaired values, not you. (increases credibility)
- Documentation in the report addresses answers to Insurance company claims such as:
- You don’t have diminished value until you sell your vehicle.
- You may not disclose the damage to the buyer.
- and many more objections answered before they become credible.
Will I need an Attorney to settle my claim? The majority of our clients are able to settle their claims through use of the appraisal and simple negotiation. Normally clients who retain Attorneys have huge claims that are over $10,000 dollars or more. If your claim is over $3000.00, an appraiser will work directly with you and discuss your claim and provide information about your options.
