Diminished Value Appraisal
The Claim Process Simplified: From Free Consultation and Estimate to Success
What is a Diminished Value Appraisal and why you need one is one of the first questions people ask themselves ?
There are still many people out there that think they can do a diminished value claim alone by printing up a value from a trade in figure they get from KBB, NADA, Edmunds etc. and let me tell you it is the same as practicing surgery on yourself, a bad idea. Though on the outside it may look easy it is not first off let me explain to you and I am very sorry to say this:
You have no rights if you got crashed into, only the policy holder has rights since they are under contract.
The same as being on trial, you must prove the loss and a print out or a dealer trade-in is not proof. Since you have financial gain and the car dealer has financial gain by paying you the least amount possible it is only proof if it is a disinterested party or if the dealer is willing to do a letter head declaration, saying they do not want to buy the car and are willing to testify in court to the loss of value.
My favorite is when people shop around for appraisals getting estimates in order to see which one is the highest, I don’t know if you are aware of this but that is insurance fraud and secondly, if the claim gets escalated you will not get anything paid and can be also accused of fraud. Not all appraisals are created equally.
There is no legal standard for licensing in Diminished Value so be careful. What is considered as an expert is credentials such as state licensing for adjusting, car dealer, warranty, finance, wholesale, auction and or all of the above. We have all of the above.
What Makes up a Diminished Value Appraisal?
Identity: The owner information and who ordered the appraisal to be made
Exact Car Information: Including: Vin, Year, Make, Model, Miles
Car History: Previous loss information, if any is declared
Claim Type: What type of a claim is the documentation you are preparing is for
Pre-Loss: Before Accident Pricing In Your Demographic Area
Post-Loss Value: After Accident Pricing In Your Demographic Area
Valuation Floor: This is the maximum the car can sell for and the lowest it can sell for, when you subtract them it gives you the maximum loss a car can sustain. Because a car cannot loose more than it is worth but with many so called Diminished Value Appraisal companies it is not so, they declare losses over what the car can loose in order to negotiate a higher amount and comit fraud, make you comit fraud in the process but get you to buy a report because it is higher than what others stated. Please don’t be a victim and fall in this trap.
Comparables area: is where comparable Vehicles and Comparable Car Sales Fit To Your Vin
Severity Scale: I-Car and NAAA are the only companies that have set a standard to strucural damage and severity of accidents
Repair and/or Damage Area Breakdown: Most appraisals show repair ratio of parts to labor but when considering Diminished Value it must not be based on a percentage ratio how damage appraisers calculate, it must be based on percentage of car damage: Meaning not only change of panels but paint also which cannot be done as a percentage of cost of repairs basis. Example a car can have structural damage and have $1,000 repairs and another car can have no structural damage but have $5,000 in repairs. Structural damage is worse but a damage appraiser would do it based off of cost.
Appraiser Signature: The majority of reports, assessments, appraisals do not have a signature for one reason only and that is for liability. Where there is no signature there is no liability on the person who sold you their services.
Disclosures: The area that shows how you arrived at your calculations, that you followed USPAP standards and what is your basis for the entire report, appraisal and or assessment.
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