The Claim Process Simplified: From Free Consultation and Estimate to Success
What is Diminished Value (DV) also referred to Diminution in value (DIV or (DOV) in legal terminology ? is the loss of financial value to property because of an event such as a car accident, flood, fire or even a natural disaster.
Any type of loss can cause a bad vehicle history report to show up. A car history is also referred to as the cars birth certificate as is the (VIN) Vehicle Identification Number, is almost the same as an address for a house or a social security for a person. Once, the event happens to a vehicle it stays with the vehicle making it worth much less.
Types of Diminished Value
Immediate Diminished Value: Also referred to as Instant DV, it is the loss a car has before repairs are completed. Many people will tell you that a claim cannot be started until after repairs are completed which is not true since the loss is immediate/ Instant at time of loss.
Inherent Diminished Value: This is the claim the majority of people open, after repairs are completed the amount of loss that exist in comparison to the rest of the vehicles for sale because of the loss.
Repair Related Diminished Value: Also referred to as bad repairs that make the car worth less, it could be as simple as a paint mismatch, bumper alignment gone wrong or even the use of recycled parts to save the insurance company money and now have made your car less than safe.
Do you have a Diminished Value Claim? If your car has been damaged by an accident, natural disaster or vandalism then the answer is YES. The only question is how much and how to start a claim. We offer Free Estimates and Free Consultations – CLICK HERE.
Anyone Can File A Diminished Value, at fault and not at fault in every state even if you have had multiple claims if you are filing for an IRS tax deduction under casualty loss. If you are seeking an actual cash recovery check in the mail, please see below or visit our Diminished Value Law Page
What States Allow You To Collect Diminished Value: Every state allows you to collect diminished value if you are not at fault in the car accident. In the state of Michigan, you must take it to court as the insurance company will not honor the claim.
With Uninsured Motorist or Under Insured: It depends on your insurance policy and you must check if it is excluded in your policy but you can always sue the at-fault driver.
What If the Accident Was My Fault Can I Claim Diminished Value: The first state to make this legal was Georgia but a couple other states have also continued to allow it as of date such as Kansas and Washington. North Carolina is dependent on circumstances and policy language.
Please note, that first party claims (When you are at fault) are very difficult to fight outside of the states listed above Georgia, Kansas and Washington, as language has been created to protect the insurance companies from paying you and paying the person you crashed into.
Do I Need An Attorney Or Any Other Type Of Help To Recover Diminished Value : The majority of the cases you will not need an attorney, unless there is a personal injury involved or you have a classical, antique or exotic vehicle. You will always need a diminished value appraisal as even the insurance company and the attorney in every case commission one from us.
You cannot calculate diminished value yourself, better said if you want to get a fair settlement you cannot think you will get a fair settlement if you leave it to the insurance company.
The same goes for finding your own body shop to repair your vehicle as most of the time the insurance company will send you to one under contract that will give you the cheapest parts available which are not oem and even recycled/re-manufactured or used from LKQ in many occasions. Find our more about Diminished Value Claims Today
Diminished Value Calculations and Formulas : The mother of all formulas was 17c which was born in Georgia in the case of Mabry v. State Farm, before that the court used a pre-loss and post-loss basis which is what appraisers still use to this day.
So what is the 17c formula and how was it ever allowed into use? There was a class action case and there were to many claimants, so a formula was created that benefited the insurance company so they would settle quickly. The formula starts by taking the car value, lets say $20,000.00 in this case.
Starts with NADA Valuation Which Is Not Inline With The Market
$20,000.00 Car Value based on Miles,Year, Make and Model
10% cap which is $2,000.00
Second deduction for Miles 0.00-1.00
Damage Modifier 0.00-1.00
If the car had Under 0-10,000 miles and had sever damage it would stay at $2,000.00 Max
If the car had for example a previous accident or no structural/frame/unibody damage it automatically has $0.00 DV
If the car had sever damage but had over 100,000 miles it would have automatically $0.00 diminished Value. Find out more about Diminished Value Calculator
What is a Diminished Value Appraisal ?
Our diminished value report is custom tailored for the individual it is a combination of your vehicle accident information including your personal information, the facts about your accident and then finally the meat and potatoes of the diminished value appraisal is filled with comparable vehicles in your area which are the same as yours, standard industry book values, auction values, dealer values for buying and selling which include the use of JD Power, BlackBook, NADA, Edmunds, KBB, Manheim auction, Vauto, CarFax and/or Autocheck which give us the framework for determining the difference in sales value. We also factor year, make, model, additional equipment, mileage and repair report. The diminished value calculation based on pre- accident market value amount and post-repair market value.
Anyone who knows the industry knows that you must look at a combination of actual damage vs. dealer and market perspective to arrive to a value.
As we all know a cars suffers diminished value no matter how small the accident since it is a stigma that occurs with the fact that the car has had an accident.
We understanding the frustration that comes with dealing with the insurance company and for this purpose are determined to provide you with the most accurate 10 pages diminution value appraisal report. Find out more about Our Diminished Value Appraisal
This is how the insurance company calculates diminished value when there is no diminished value appraisal.