Diminished Value
What is Diminished Value ?
You've been in an auto accident - You now have a claim for collision damage - You may also have a claim for Diminished Value - Diminished Value is the amount by which the resale value of a damaged (or damage repaired) vehicle has been reduced for having a significant damage history. There are actually three (3) broadly accepted types of Diminished Value . . .
- Immediate Diminished Value is the difference in resale value of a vehicle immediately before damage has occurred and immediately after damage has occurred (prior to repair). Most jurisdictions (courts) will use this standard as the primary measure of damage when courts are employed to seek reimbursement for damage from a negligent party. As courts are rarely the chosen venue for recovery of property damage, the standard of "Immediate Diminished Value" is rarely employed in resolving Diminished Value Claims . . .
- Inherent Diminished Value assumes optimal repair quality has been achieved and is defined as the amount by which the resale value of a repaired vehicle has been reduced simply because the subject vehicle now has a significant damage history. "Inherent Diminished Value" is the most widely recognized and accepted form of Diminished Value. It is also the basis upon which any supplemental form of Diminished Value would be added. A common "Supplemental" form of Diminished Value is "Repair Related Diminished Value" . . .
- Repair Related Diminished Value includes any additional amounts by which the resale value of a subject vehicle may be further reduced because of less-than-optimal repairs. This could include anything from minor cosmetic imperfections to major structural defects.
Has My Vehicle Suffered a Diminished Value ?
The only blanket answer here would have to be "Yes" ~ "No" ~ or "Maybe". The newer the subject vehicle, in better pre-loss condition, with no significant prior damage history, with significant current damage - the more resounding the "Yes" answer becomes . . . The older the subject vehicle, in lesser pre-loss condition, with a significant prior damage history and minor current damage - the more deafening is the "No" answer . . . The more circumstances moderate between these two extremes the more your true answer will fluctuate !
How do I get paid for Diminished Value?
To get paid for Diminished Value, you must provide documentation to the responsible insurance company with an accurate assessment of your Diminished Value. And, more importantly you have to know how to communicate and negotiate the claim with the insurance company. That is where we come in.
Is the claim really worth pursuing?
Yes. The insurance industry would hope you didn't. However, our experience shows that if you have a professional company representing you in your claim, you will most likely end up collecting.
The insurance company says the vehicle has been repaired properly, and as a result, not suffered Diminished Value. Is this true?
No. The vehicle is still worth less regardless of it being repaired properly due to the accident. The fact is, you cannot sell it for the same amount as a like vehicle which has not been in an accident. And, no dealership will take it in as a trade in for the same amount. Insurance companies have tried to avoid paying on Diminished Value claims for years and they do and say whatever will justify their position. Diminished Value case law has been around for nearly 100 years.
How Do I Know for Sure ?
Reasonable people can apply common sense to the "Yes" ~ "No" ~ "Maybe" guidelines referenced above to arrive at a reasonable degree of probability. The greater the probability, the more justified it becomes to call upon a Diminished Value Professional to counsel you further.
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