A DIMINISHED VALUE PRIMER
What is Diminished Value? This article explores the evolution of diminished value. This recently coined term is most often applied to the reduction in value of a car or truck after collision damages have been repaired. Regardless of how well the repairs were done, used car buyers would rather purchase an automobile with no accident history, thereby making the previously repaired vehicle worth less than its counterpart. Diminished Value is the difference in the value of your car directly before and directly after collision repairs have been completed. After being repaired, your car has a bad Carfax or other vehicle history report. Used-car buyers prefer to purchase cars that were never previously damaged so your car, by comparison, is less appealing; hence, it is worth less. If there was frame, unibody or air bag deployment it is worth a lot less. You can make a third-party diminished value claim against the insurance company of the driver who caused the accident. The first step is to obtain an automobile diminished value appraisal from a diminished value specialist. The St. Lucie Appraisal Company services all 50 states by providing diminished value reports and expert witness testimony for owners of damaged vehicles. You may call 772-359-4300 or email us at email@example.com if you have questions or need more information about the best diminished value appraiser in the business.
IS DIMINISHED VALUE REAL?
From Wikipedia: While some may claim Diminished Value is subjective and based upon perception or speculation, the old adage “perception becomes reality’ applies and as such Diminution in Value is real simply because, for the most part, no reasonable and prudent person is willing to pay the same price for a vehicle with a history of damages as they would for one never having been damaged. It is therefore reasonable that the value of a damaged motor vehicle will suffer a lessening in value. How much of a vehicle’s value is ultimately lost after repairs are completed? The amount of diminished value varies according to many factors. The year, make, model, mileage, type and severity of repaired damage and even a car’s color can factor in to the equation. Consumers of high-end cars such as Tesla, Mercedes-Benz and Porsche tend to be more discriminating and usually won’t buy a vehicle that was repaired, regardless of how minor the damage was. Diminished Value can result in 50% of the vehicle’s value lost, especially if frame damage or air bag deployment was involved.
FINDING YOURSELF IN DIMINISHED VALUE HELL
The owner of a motor vehicle that was damaged as a result of someone else’s negligence can file a diminished value claim against that person’s insurance company. This is known as a Third-Party claim and vehicle owners are allowed to pursue these in every state except Michigan. A First-Party claim means filing a claim against your own insurance company. First-Party diminished value claims are only allowed in Georgia and Kansas.
Do not be surprised if insurance companies offer you only a few hundred dollars in compensation for diminished value. Some even have the temerity to offer nothing at all. A recent case in which we provided expert testimony resulted in an Insurance Company, who had, in fact, offered absolutely nothing to our client, having to pay the full diminished value amount, our appraisal fee, our expert witness fee and our client’s attorney’s fee. On top of what the they had to pay its own experts and legal defense team, it was a hard lesson learned by the insurer. As more and more magistrates and mediators become familiar with diminished value, claimant’s will eventually have an easier time obtaining fair settlements.
PROPER DIMINISHED VALUE PROCEDURES
Both the amount and nature of the damages being repaired are determining factors in assessing the amount of diminished value.Therefore, you should wait until repairs are completed and the full extent known before hiring a licensed independent appraiser.
Here are six ways that answer the question: How to get a fair automobile diminished value settlement from an insurance company? Insurance companies have a track record of refusing fair claims service to people with legitimate diminished value losses. If you’ve been denied fair treatment by an insurance company, you may not realize that you have options. Sometimes automobile diminished value claims require work. If you have been unfairly denied or low balled, you owe it to yourself and other customers to stand up and let insurance companies know that this is not how business should be done.
1. Stay calm.
Keeping a cool and calm attitude is the most important thing you can do when filing an automobile diminished value claim. Be calm, professional, and insistent. Don’t apologize about your claim or be afraid to insist on a fair settlement. Profanity and rudeness will not earn respect or validate your claim. Refuse to stoop to nasty behavior, even if it is being thrown your way, control yourself and the situation. It makes you look good no matter how rude an insurance company claim representative may be.
2. Document your claim.
Make sure that you have proof of the diminished value and all details to prove your case for a magistrate or mediator if necessary. Obtain an automobile diminished value appraisal from a licensed independent appraiser. Be sure to hire an appraiser that bases their diminished value appraisals on dealer quotes of which they should obtain at least six. Steer clear of appraisers that take short cuts such as using formulas or algorithms as well as those who rely on auction results. Save all emails.
Insurance companies try every tactic under the sun to deny automobile diminished value claims. If an insurer insists that the independent appraiser must physically inspect your repaired vehicle, inform them that repairs were done to your satisfaction and to factory standards. You are filing a claim for inherent diminished value which simply means that your vehicle has lost value by virtue of the fact that it now has a bad Carfax or other vehicle history report. Only in claims of repair-related diminished value, in which you have issues with the quality of repairs, does the appraiser need to physically inspect the vehicle. Also, if an insurer insists that you must hire an attorney to file the diminished value claim, unless they are willing to pay your legal fees, inform them that you have an absolute right to file the claim yourself.
3. Escalate your claim.
Claim representatives are trained to keep problems from going to managers or supervisors. Keep asking. If you are stonewalled, politely ask the insurance adjuster to transfer you to a manager or someone else who can take care of your problem. Inform them that you can hold if they tell you a supervisor is not available. You may need to spend a good deal of time on the phone with the claims rep before you can convince him or her that you are serious about getting the problem fixed.
If your calls to the insurance company are ignored you may be able to reach a helpful representative at the insurance department in your state. Insurance companies dread having unfair claim practices complaints filed against them. A representative from the insurance department can call the insurance company on your behalf.
Any calls to the insurance company’s home office may get directed to voice mail. Leave messages and return all phone calls keeping track of dates and times. Always include your claim number and a phone number at which you can be reached. Keep record of any phone calls that have not been returned by adjusters or supervisors about your problem.
4. Report them.
You’ve tried everything and the insurance company still refused to make it right. You still have more options. First, log a complaint with any rating companies of which the insurer is a member, such as The Better Business Bureau. There are also other online sites such as Ripoff Report in which you can report insurance company wrongdoing. You are doing yourself and the public a favor by reporting it. If every wronged customer had the courage to protest instead of sitting down and writing it off as a loss, there would be an improvement in how insurance companies treat claimants who file automobile diminished value claims. Provide specific details of your complaint, and note if you have not been contacted by claims supervisors to resolve your problem. Follow through on any communication. Be firm about a fair monetary settlement that fairly covers your loss.
File a complaint with Ripoff Report and Internet Blacklist. These are sites for consumer advocacy. Email a copy of your Ripoff Report to the insurance company and inform them that you are very willing to update your report with any positive response they give to your complaint.
5. Spread the word.
Let the public know what kind of customer service you received. Social networking plays a large role in defining a business. Post your comments on the insurers Facebook page. Re-post if necessary and ask them to respect your comment but do not use abusive language or over-post your review. Be creative with your reviews.
Use Twitter to spread the word. Get your complaint noticed by tweeting about your insurance company complaint. Ask your followers for advice. Someone who had the same problems with an insurance company may be able to give you some guidance.
Write reviews and rate the insurance company on sites that list ratings for businesses such as Google Maps, Tripadvisor, Yelp, Epinions, Topix, WebofTrust and RateItAll. Ratings do matter. It may bring attention to your problem. List your review of the insurance company on customer complaint sites such as ComplaintsBoard, PissedConsumer, My3Cents or Complaints.com. Find forums that address your issue and post reviews. Keep your comments relevant to any topics you post on and avoid profanity.
Start a blog. Let others know about your experiences and what you did to resolve the problem. You already did the work and the research. Others may have tips or advice for addressing the problem. If nothing else, you are turning a negative experience into something good. You never know what part you might play in a company’s decision to revise its poor customer service policies.
6. Take them to court.
Finally, when all else fails, you may wish to consider filing a claim in small claims or other civil court. It is uncommon but occasionally, despite your providing them with an appraisal showing the opinions of six auto dealers as to the amount of diminished value, an insurance adjuster will attempt to deny that is proof. As the concept of automobile diminished value becomes familiar to more magistrates and mediators, your chances of succeeding are greater. Courts have awarded claimant’s appraiser, expert witness and attorney fees be paid by the insurance companies in addition to the amount of diminished value. Hiring an attorney with experience in diminished value cases and going in armed with a comprehensive appraisal are important and can make the difference between winning and losing the case.
THE DIFFERENCE BETWEEN FIRST AND THIRD PARTY DIMINISHED VALUE CLAIMS
A first-party claim is when you seek compensation from your own insurance company. In diminished value cases, this is allowed only in Georgia.
A third-party claim is one in which you seek compensation from the insurance company of the party responsible for the loss. This type of claim is allowed in every state except Michigan. DO NOT let an insurance adjuster tell you that third-party diminished value claims are not allowed in such-and-such state. Ask them to provide either insurance or case law that backs up their assertion. In all states with the exception of Michigan there are either no court decisions regarding recovery allowed for diminution of value in a third-party claim or courts have agreed with jurisdictions that have generally held that the measure of compensation to the owner of a negligently damaged motor vehicle may include proven residual diminution in fair market value.
There is also a category of claim known as UM or uninsured/underinsured motorist coverage. If the responsible party either has no insurance or has policy limits that are insufficient to pay your claim in full, you may make a UM claim with your own insurance company in the following states: 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 and West Virginia. Be certain that your insurance agent won’t readily guide you toward this remedy – taking the initiative is your responsibility.
HOW FRAME, UNIBODY AND AIR BAG DAMAGES AFFECT DIMINISHED VALUE
After undergoing collision repairs, that car is a less desirable commodity. Depending on a myriad of factors such as the desirability of certain makes and models, what impacts the car’s diminished value most is the severity of the damages that were repaired. When frame, unibody, air -bag and disabled vehicle issues are reported, loss of value skyrockets. Auto manufacturers can’t certify them and banks may not finance them. Almost all trade-ins that had frame or air bag repairs go straight to auction where the dealers hope they won’t get burned too badly by low auction returns. So how does this affect you?
The St. Lucie Appraisal Company obtains diminished value quotes from sales managers at multiple new car dealerships. These professionals have the most intimate knowledge of two very important things – A) How much value different cars lose as a result of what repairs were done and B) Used car buyers and their buying habits. Combined with their years of experience in the business, their opinions count. It is not uncommon for me to hear the word “Half” being said without hesitation after making an inquiry to a sales manager. A car that had frame damage or air bag deployment can lose up to half of its fair market value.
DIMINISHED VALUE AND SMALL CLAIMS / CIVIL COURT
Among the various and many articles that have been written about automobile diminished value, there are but a scant few that describe what happens when an irate claimant decides to escalate his claim into small claims court. Of course, there are many diminished value losses that exceed the $5,000.00 limit of this venue but for this article we will examine diminished value in small claims court. The St. Lucie Appraisal Company had occasion to prepare an automobile diminished value report for a customer, but not before he made mistakes along the way. The gentleman owned a 2013 Honda Pilot which was damaged in August 2013 by a negligent driver who was insured with Safeco Insurance. After having his 3,900 mile vehicle repaired for $1,446.13, not a great deal of damage you will agree, he filed an automobile diminished value claim against Safeco. He presented as evidence of diminution, a document from his Honda dealer which stated that his vehicle, due to its now having a bad Carfax, was worth $4,000.00 less.
Insurance companies in general have become sophisticated in recognizing what types of claimants they are dealing with when it comes to diminished value. This claimant did not seek out an independent appraiser, rather, he decided to forgo the cost and present his case armed with a letter from his Honda dealer. Safeco, in turn, likely categorized him as someone who would not cause them any trouble; certainly not someone who would spring for the cost of an attorney. Insurers take the same approach when claimants present them with the low-cost types of diminished value appraisals found on the internet. Safeco denied his diminished value claim, offering him absolutely nothing, not even a token few hundred dollars as most insurers typically do.
That’s when our customer contacted us to prepare an automobile diminished value report. Our appraisal, which was done on the basis of six quotes obtained from area Honda dealers, came to $2,000.00. With the appraisal in hand, he then contacted his attorney who filed a small claims action against Safeco in civil court. We were again contracted to appear as an expert witness to defend our findings. From someone who first approached the matter of a diminished value claim with a BB gun, our customer was now prepared for battle with both barrels trained squarely on Safeco.
Safeco, of course, brought it’s own defense team that included an expert witness. Their expert witness did not produce an appraisal based on dealer quotes – their contention was, repairs having been done to industry standards, that diminished value did not exist.
We were questioned by both the claimant’s and insurer’s attorneys before the judge rendered his decision. One of the questions asked by Safeco’s attorney was whether our diminished value report was biased. The answer was no and it was truthful. When The St. Lucie Appraisal Company prepares an automobile diminished value report, we present the facts to the dealers queried exactly as they are. The year, make, model, options and color of the subject vehicle as well as the specific damages that were repaired. All of the dealers queried are informed that the subject vehicle is not available for purchase or trade, therefore none of the dealers queried have any vested interest in the subject vehicle. The results of our inquiries speak for themselves. We neither add nor subtract any opinions of our own, nor do we attempt to skew results in favor of our customers.
Our appraisal fee is $275.00 and the cost to hire us as an expert witness is $675.00. Our customer’s attorney fees must have been in the neighborhood of $1,000.00. However, he was so put off by the cavalier treatment he received from Safeco, he decided to risk spending the additional monies in order to extract a fair settlement from the insurer.
In the end, the magistrate agreed with our appraisal and also with the fact that compensation for diminished value was due even though the claimant had no intention of selling his vehicle. In addition to awarding the claimant $2,000.00 in diminished value, he ruled that Safeco should also pay all of the claimant’s appraisal, expert witness and legal fees. It was a bad day for the insurance company seeing as they were also on the hook for payment of their own defense costs, but it took the fervor of the claimant – his David vs. Goliath mentality – to put all of that in motion.
The claimant’s attorney did not seek any punitive damages even though evidence of unfair claim practices existed. Perhaps in the future, when more Davids summon the courage to challenge the Goliaths that are the insurance companies, all 50 states will adopt uniform laws that require fair and equitable treatment by insurers in automobile diminished value cases. Penalties for ignoring an obvious fact – that automobile diminished value does exist – may someday be imposed upon predatory insurance companies. On this day it was sweet vindication for our customer and, hopefully, a warning for insurers to start walking a straight line when presented with claims involving automobile diminished value.
METHODS FOR DETERMINING THE AMOUNT OF DIMINISHED VALUE
How much of your car’s value has been lost as a result of its having been repaired? The year, make, model and severity of damage all play a part but the question remains – what methodology best answers the question most definitively? Here are the three most commonly used approaches that are used by independent appraisal companies. These are in addition to the tactic of obtaining a letter from your dealer expressing his or her opinion regarding your cars diminished value. One caution to taking this approach is that the insurer’s response will be that your dealer is obliged to provide the lowest buy amount making his opinion subjective and without merit.
1) The use of formulas or algorithms – An historic ruling by the Georgia Supreme Court judged this type of approach in its examination of State Farm’s Rule 17-C in which damage “modifiers” are used to arrive at the amount of diminished value to be inadequate and unfair. Modifiers include location of damage, whether adjacent panels were affected, mileage, structural damages and the arbitrary and unfair maximum payment of only 10% of a vehicles fair market value. Many insurance companies still use this method even though the court approved it only as an alternative – in the absence of any other verifiable method of measure. So why would an appraiser working on your behalf employ this method, especially knowing in no uncertain terms that the insurer’s formula will conflict with theirs? One answer: Assessing the amount of diminished value by using a formula or algorithm is the quickest way to complete the job. Another answer: Independent appraisal companies using formulas that will result in lower diminished value assessments may hope to procure assignments from insurance companies which are only too happy to contract their work to vendors that will save them money.
2) The use of automobile auction results – while being a better alternative to the use of formulas and algorithms, insurance companies routinely downgrade these types of appraisals, arguing that they do not address the specifics of the subject vehicle. This much is true. While automobile auction results will list ten previously undamaged 2014 Cadillac Escalades that were sold for X number of dollars next to ten previously repaired 2014 Cadillac Escalades that were sold for Y number of dollars, the vehicle listings often do not show the specifics for the purpose of comparison – the mileage, options, colors or exact damages that were repaired. Again, the answer to the question “Why would an independent appraiser working on your behalf use this inaccurate method?” is that it takes just a few minutes to compile this type of diminished value report as well.
3) A letter from the claimant’s dealership declaring that the vehicle has lost value as a result of undergoing collision repairs. A typical insurance company response: “A dealership is not a disinterested third party and has a financial interest in the acquisition price of a trade in vehicle. Their business model is to buy low and sell high. An offer of trade is simply the starting point of a negotiation and does not, in and of itself, establish any specific loss in value. It is our position that the documentation presented by you does not provide any underlying market data in support of the post-accident value of your vehicle.” One may concede that the use of a trade-in quote from the claimant’s dealer presents a valid argument that this is not an acceptable method.
7) The most time-consuming and difficult methodology for determining the true amount of diminished value is also the best – obtaining quotes from at least six area new car dealers – the ones who actually take these bad Carfax vehicles in trade. Very few – if any other – independent appraisers use this method simply because completing the report can literally take hours. Many consumers have painted automobile dealers as the bad guys because of the lower prices they offer for previously repaired cars. In reality, it isn’t the dealer, nor is it the insurance company or the appraisers that set the market for these cars, it is the used car buying public. People won’t pay nearly as much for an automobile that had structural damage, therefore, the dealers are forced to pay less for them. The vast majority of new car dealers will affirm the fact that every previously frame-damaged car they take in trade goes straight to the auto auction and they are lucky if they break even on them. Car companies can’t certify them and many banks won’t finance them. The St. Lucie Appraisal Company takes the time to acquire six verifiable quotes from new car dealers.
The advantage for our customers is that quotes are based on information specific to their automobiles. In addition, since the dealers are informed that the subject vehicles are not available for purchase or trade, insurance companies cannot object to this method based on the dealer’s having any vested interest in presenting biased quotes.
COMMON DIMINISHED VALUE SCENARIOS / STATUTES OF LIMITATION
- Loss – A collision or other accident occurred involving your car.
- Liability – Must be determined that the Loss was as a result of another party’s negligence (Except in GA, KS and WA)
- Estimate – The body shop will write a preliminary estimate. Then, usually after repairs are completed, a finalized estimate is provided.
- Repairs – From minor fender benders to near total losses, your car now has a repair history that devalues it relative to repairs and other factors.
- Diminished Value Appraisal – These documents will show the amount of value your vehicle has lost as a result of the repairs. You will provide it for review by the insurance company adjuster after which you hope you’ll receive a fair settlement offer.
- Insurance Company Response – Out of every hundred diminished value appraisals completed, we hear back from less than 5% of our customers which we regard as a good thing. That’s not to say that providing a comprehensive diminished value appraisal guarantees that the adjuster will comply. It is often necessary to escalate claims to the managerial level or make an unfair claim practices complaint to your states insurance department. Here’s a message posted recently in a forum that provides good advice.Most insurance companies put up a fight regarding diminished value cases because they know the majority of owners will eventually cave in and go away, or accept much less for fear of going to court. I had to take the other party’s insurance company to Small Claims Court in my initial diminished value case back in 2009/2010 on my S-Type. I got a fair settlement in court so it was well worth the time and hassle. The diminished value case with my wife’s XK8 in 2014 was a bit easier and quicker. The other party’s insurance company discovered I had been through the process before and chose to settle with me rather than risk losing in Small Claims Court and having to pay me plus all the legal and court costs on both sides….
- Negotiations – You can usually hammer out a mutually satisfactory agreement provided you insist on fair treatment. When insurance companies adamantly refuse to work toward equitable solutions, it may be time to look into obtaining legal representation. Although attorneys aren’t allowed in many small claims courts, a lawyer can advise you as to a course of action and write correspondences on your behalf. Cases involving losses in excess of $5,000.00 of course go to civil court where your attorney may represent you.
- Settlement – Expecting to collect, for example, the full diminished value figures that we arrive at from insurance companies may seem overly optimistic but there are some people who do it. Next there are those who are happy to collect something in the neighborhood of our figure and yet others who will settle for less rather than spend their valuable time sending emails and arguing on the telephone. We can find merit in all three but you can be assured that a diminished value appraisal from The St. Lucie Appraisal Company is designed to be read by mediators and magistrates. So if you are going to war with an unscrupulous insurance company, be assured that you have the best ammunition right in your hand, a diminished value appraisal prepared by us.
Statutes of Limitation by State
District of Columbia 3
New Hampshire 3
New Jersey 6
New Mexico 4
New York 3
North Carolina 3
North Dakota 6
Rhode Island 10
South Carolina 3
South Dakota 6
West Virginia 2
UNUSUAL DIMINISHED VALUE SCENARIOS
There are instances where antique cars suffer diminished value. Even though these types of vehicles don’t have repair histories such as Carfax which only reports on cars 1991 and later. This article provides one such example.
LOSS OF USE CLAIMS IN DIMINISHED VALUE CASES
Loss of Use is the inability to use an automobile due to damage caused by the negligence or other wrongdoing of another. It can also be defined as the damage a person suffers from the inconvenience of not having their car after it has been in an accident. The owner of the vehicle has a right to be compensated for Loss of Use.
Where property has a reasonable value, its owner is entitled to recover damages equivalent to the reasonable value of such use during the period he or she has been deprived thereof. Rental of a Tesla Motors, Ferrari, Bentley, Porsche can cost $350.00 to $500.00 per day. Sometimes car repairs take up to sixty days. Do the math.
Insurers are advised to follow requirements and guidelines with regard to providing substantially similar replacement vehicles to eligible claimants. Failure to act accordingly is cause for the policyholder or claimant to cite appropriate unfair claim settlement practice laws in a complaint, even if the state has no statutory restrictions on settlement verbiage.
GOOD AND BAD REVIEWS OF INDEPENDENT DIMINISHED VALUE APPRAISERS
It makes little sense to advertise on Google and other search engines and then provide poor service to your customers. Inevitably, dissatisfied customers take to review and complaint sites like BBB, Ripoff Reports, Angie’s List, Complaints Board, Yelp, Superpages, Yellow Pages, Pissed Consumer, Fat Wallet, etc. And then there are the companies that offer “Free Diminished Value Appraisals” that end up costing you an arm and a leg.
When we speak to a customer about their automobile diminished value claim, at no time do we make promises in order to obtain their business. Frequently, we are called upon to perform a diminished value appraisal after other independent appraisers already did so. The St. Lucie Appraisal Company does not offer money back guarantees. What we do – contacting numerous new car dealers and obtaining their opinions of your car’s diminished value – requires a great deal of time. We don’t simply concoct a formulaic appraisal or run off pages and pages of auction results. But most of all, we don’t make promises that we can’t keep.
HIRING AN ATTORNEY FOR A DIMINISHED VALUE CASE
It is not necessary to hire an attorney for a diminished value matter unless you’ve already made mistakes or have come up against a very determined insurance company. If the average diminished value claim is worth $15,000.00, there is little incentive for a busy attorney to get involved. Tesla Motors, Porsche, Mercedes-Benz and other high-end automobiles can have diminished values of $50,000.00 and more. In these cases you will find more capable lawyers willing to represent you.
AUTO DEALERSHIPS AND DIMINISHED VALUE
The most reliable indicators of the amount a car has lost in value is obtained through verbal discussions between appraiser and sales managers at recognized automobile dealerships. Dealers access auction results to get a general idea of the potential for loss in value but it is the characteristics of a particular car, its specifications and what was repaired, that must be known to hone their opinions, and therefore our appraisals, down to exacting standards. All of the dealers queried are informed that the subject vehicle is not available for purchase or trade, therefore none of the dealers queried have any vested interest in the subject vehicle.
HOW DIMINISHED VALUE AFFECTS OLDER CARS
There is a perception that it isn’t worth pursuing diminished value claims on older cars, those more than four years old. Especially where there was frame, unibody or air bag deployment involved, these cars can lose thousands in diminished value, sometimes half of their fair market value.
CARFAX AND DIMINISHED VALUE
In 1984 CARFAX was founded in Columbia, MO by a computer expert named Ewin Barnett III working with Robert Daniel Clark, an accountant from Huntingdon, PA. Barnett was initially trying to combat odometer fraud. By working closely with the Missouri Automobile Dealers Association, in 1986 he offered the early version CARFAX vehicle history report to the dealer market. These reports were developed with a database of just 10,000 records and were distributed via fax machine. By the end of 1993, CARFAX obtained title information from nearly all fifty states. In December 1996, the company’s website was launched to offer consumers the same vehicle history reports already available to businesses.
PHYSICAL INSPECTIONS OF INHERENT AND REPAIR-RELATED DIMINISHED VALUE CARS
Some insurance companies like to send an appraiser to inspect your repaired vehicle. This ruse is designed to create a report asserting that, because the car was repaired to factory standards, diminished value does not exist. Pure nonsense, of course, but there are still insurance companies trying to get away with it.
There is no reason for your own appraiser to inspect your repaired car in an inherent diminished value case. Hiring such a firm will simply result in a huge appraisal fee. Repair-related diminished value appraisals do require an inspection as the quality of repairs are being called into question. Inherent diminished value claims do not fall into that category.
USING TRADE-IN VS. RETAIL VALUES IN DETERMINING DIMINISHED VALUE
In order to present an eminently fair and accurate picture of the diminished value of your vehicle, we have based our calculations on Fair Market Value (Or, Trade-In Value) rather than on Retail Value. There is a provision in our appraisal whereby a retail value is also provided in the event our customers choose to pursue their claims on a retail basis.
CREDENTIALS FOR AN INDEPENDENT DIMINISHED VALUE APPRAISER
There are no licensing requirements required to provide automobile diminished value appraisals in any state. It is similar to an appraisal of an antique car done for underwriting purposes. Licensure, in states that require it, is required to perform damage appraisals and secure agreed prices with body shops. So why hire a licensed appraiser to handle an automobile diminished value appraisal?
An individual who holds an adjusters or automobile appraisers license issued by a governmental agency has credibility – in court and in the eyes of adjusters and insurance company defense attorneys who are deciding how little they can get away with paying you.
“Certified” appraisers do not fall into the category of licensed appraisers, however, there are some who do hold state adjuster or appraiser licenses. “Certified” organizations operate under a Pay to be Certified system. Use due diligence – make sure that your appraiser is licensed in any state. Magistrates typically consider state licensing sufficient evidence of one’s expertise in the adjusting and appraisal fields.
After making your secure payment please email the completed body shop estimate or insurance company appraisal to firstname.lastname@example.org
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