What Is Diminished Value ? Any type of accelerated depreciation or devaluation caused by a loss such as an accident or a natural disaster.
The Types Of Diminished Value that exist: (sometimes called DAV, Diminution of Value, DV or Accelerated Depreciation)
There are three (3) basic types of Diminished Value . . .
1. Courts use immediate diminished value as a method more than a type of diminished value with the process of assessing damage of property damage claims by calculating before accident market value and after accident market value of a vehicle in order to calculate diminished value.
2. The most common type of DV is Inherent DAV which has a two prong standard, one being the car is repaired perfectly and two being that once the car is repaired that the car history or disclosure of accident laws make the vehicle have a stigma attached which makes it less desirable and thus have accelerated depreciation at the time of the accident.
3. In the case of Repair Related Diminution of Value it has one thing in common, the repairs were not done correctly by the body shop and so you must open a claim against the body shop but also in some cases it is when the insurance company used non-oem parts, recycled parts or cut corners to repair your car making it loose value when it is time to sell.
Diminished Value Calculator: Learning the Methods of Calculating the Diminished Value
The disparity between the price that the average dealer would have actually paid for in trade in form for his vehicle in its pre-damaged state at the exact time of the accident as well as the trade in allowance amount actually offered to you for the vehicle is the sum of economic loss you have encountered as a result of the mishap.
Why the 17c Formula is biased, illegal and borderline insurance fraud?
It uses NADA which does not recognize diminished value, car accidents or local markets, it puts a 10% cap of the value of your car and then allows for double deductions such as mileage, damage and age.
NADA and KBB are wrong for Diminished Value. All car dealers use BlackBook but the insurance company uses NADA. Black book updates all car sales and auction sales by area on a weekly basis according to sales from all over the car industry while NADA is used more than anything as a range by the insurance company and some appraisers. Yes, many appraisers give you a low appraisal in order to keep the insurance company happy and purchase appraisals from them. Kelly blue book is also used but in most cases by the consumer market as a general tool and can range drastically on what used vehicles should and do sell for.
CarFax and Diminished Value
Most people live and die by a carfax report but the truth is I have seen many carfax reports not be updated for up to a year or more from after the car accident occurred, there are disclosure laws in each state that make an individual say when the car they are selling has an accident but car dealers can simply say that they did not know. In any case when your car is reported on any car history bureau it makes your car seem scary unless it is being sold at a discounted rate with second chance financing or alike.
Trade In Value After an accident in Diminished Value
No matter how small the accident on your car may be, whenever there is an accident on a car the dealer has an excuse to pay you as little as possible for the car you are trying to sell. Many people are afraid that since their car was involved in an accident it is not as strong as before and will break down, the car dealer plays on your fears and attempts to offer the lowest amount you will accept to purchase your accident vehicle.
Trade in appraisals for Diminished Value Proof
Many people try to go to the local dealer and get proof of the diminished value amount from the dealer, a trade in appraisal is a biased representation of value because the dealer stands to profit and has a vested interest in it and so it cannot be used as proof in any claim. If you go to ten car dealers almost every single dealer will give you a variation of the amount your car is worth to them and they are almost always different in the thousands range.
Diminished Value Debt Collection
The only way to send the driver credit collection is after a judgement has been ordered by a judge, not before. DVA is a tort not a debt. After judgement, you can sell the debt.
Diminished Value Small Claims and Civil Suit
Small claims is where you register your claim in court, they have free self help kits in all courts and classes that are about one hour long. You do not need an attorney and when it involves diminished value in 99% of the cases, it is you against the driver at fault. In a civil suit which in most states is claims over $5,000 you will need or should get an attorney that will go on percentage/ no win no fee with you. The court fees in both cases alone are about $50-400 depending on the state and the amount of the claim.
Will you need a Diminished Value Attorney?
Most attorneys have no idea about diminished value and that is why there are very few of them, they know it is not an easy case or the money is not enough for the time needed to invest in it and so they rarely get involved with diminished value unless the car is almost brand new and has frame damage including a personal injury claim or simply it is an exotic car where the diminished value will be $20,000.00 and up in most cases. That does not mean you cannot get an attorney for diminished value as there are attorneys that do it, they simply purchase an appraisal from us and then open a claim against the insurance company.
What is a Diminished Value Appraisal Report? Why Do Your Need to Hire an Appraiser?
A true and accurate diminished value appraisal, starts with a USPAP compliant format and the Daubert standard of evidence and not an arbitrary formula or instant report. There is a frame work that is studied, along with type of repairs, severity of damage and market comparable vehicles along with actual market sold amounts which can only be found accurately through Black Book then adjusted which can only be done by an expert in the field and compared against crashed vehicles for sale and that have been sold in the past. Lastly, ask if the appraiser your talking to includes comparable vehicles in your area.
Diminished Value Assessment Report is borderline fraud:
An assessment is normally an automated instant report which cannot be provided in court and is a violation of the model act, it can be in some cases deemed as insurance fraud by using a percentage of the repair amount for loss. Others use 17c or alike formulas which also do not give the correct diminished value amount.
Diminished Value Law
Can I Collect Diminution of Value 50 State law?
Yes, all states except for Michigan which does not currently allow it through recovery from the policy holder’s insurance company but can still be recovered through small claims court.
Can you still make a claim if the negligent driver had no car insurance?
Yes, you can claim DV under your UM/UI policy if your insurance company does not have an exclusion. This is only allowed in very limited number of states and can be excluded in your policy. Please, contact your insurance company and ask them to give you the exact exclusion of diminished value in the policy and if not you may open a claim under UM.
I caused the accident, do I still file for Diminution of Value?
Your only allowed to file a claim if you live in Kansas,North Carolina, Georgia, and most recently in Washington.
My car had an accident before, does it still qualify for Diminished Value?
Depending on the severity of the damage, you may still have a claim but when your vehicle has had frame/ uni-body damage it is doubtful you have any diminished value left over as it is normally the highest depreciation possible.
The insurance company sent me a check in the mail for Diminished Value, do I cash it? No never cash a check until you are satisfied it can be a trick that when you cash the check you accept terms of release of liability.
I got a check for DVA from the insurance co. ?
Don’t sign anything if you have signed a release form or the check did not have any wording on it such as cashing this check is an agreement, then you can open a claim still as long as it is within the statute of limitations from 2-10 years in most states.
I no longer own my car?
Whatever you sold the car for with an appraisal would be used as proof together since the insurance company or a judge does not know if you sold it to a friend or another beneficial source to commit insurance fraud.
Does my car need a physical inspection for an appraisal?
In most cases no, but in some cases as it applies to repair related diminished value yes but in inherent diminished value the insurance company rarely asks for it.
My repair cost was less than $500.
There is no legal set dollar quota of damage as damage is damage in all cases your car now has a car accident history report and the diminished value is normally more than the car repairs in these cases.
What does the (“appraisal clause”) say?
In a typical case only first party accident claims can call upon the appraisal clause but the insurance company as a rule of thumb in the majority of cases will get their own appraisal in order to show you proof that the low ball offer they are offering or the denial is backed by an outside company.
Diminished Value Tort Law:
Under tort law which is anything involving a court case, the date of the accident is considered the date of loss.
Diminished Value and Leased Vehicle:
The leasing company is the car owner, not the driver. You are renting the vehicle only and the leasing company must file for diminished value not you.
Rental Car Diminished value
When you drive a rental car and it is crashed, your fault or not diminished value applies and must be paid for but also what no appraiser takes into consideration is that it is a commercial vehicle a depreciates faster so the diminished value claim will never be as high as a normal car.
Diminished Value Tax Deduction
All accidents are tax deductible expenses under casualty loss on itemized taxes for up to 3 years back.
Car Insurance Diminished Value claims
We provide diminished value appraisals for every car make and model some of the ones we do on average are Chrysler, Bentley, Daewoo, BMW, Audi, Ford, Fiat, Subaru, Mazda, Chevrolet, Ram, Lamborghini, Mitsubishi, Jeep, Volkswagen, Dodge, Honda, Infiniti, Suzuki, Mini, Bugatti, Nissan, Hyundai, Jaguar, Volvo, Buick, Maserati, Kia, Mercedes Benz, Ferrari, lotus, Lexus, Smart, Cadillac, Tesla, Scion, GMC, Acura, Alfa, Romeo, Lincoln, Porsche, Land Rover, Range Rover, Toyota, Maybach and every other one in between.
Diminished Value Burden of Proof
When presenting a case, you the person looking for compensation always must brings the proof of why you should get paid, in appraisals the only standard allowed is USPAP and the 2 prong (Daubert Standard ) : 1. Reliability and 2. Relevance.
Can diminished value be more than the cost of repairs?
Every adjuster I have ever talked to believes diminished value should not be more than the repairs but in many cases it is depending on the car, lets say a Ferrari it can have $7000 damage and have diminished value in excess of $30,000 or a bmw can have damage of $1000 and have diminished value of $3000.
Bad Faith law as it applies to Diminished Value
There are laws under the model act in every state called bad faith laws, which include but are not limited to biased investigation, denials, low ball settlement offers and forcing you into court.
Duty to settle in Diminished Value claims
In most cases it is the obligation of the insurance company to make sure the at fault driver do not get sued or sent to credit collection, the duty to settle is on the benefit of the at fault driver and has nothing to do with helping you but can be used to your advantage.
Time Frame to answer in Diminished Value claims
In most states there is not a time frame to answer to diminished value claims for third parties, the ones that do have a 10 day to 30 day period to respond but not to take action. So you must stay on top of the adjuster or else they can drag out a diminished value claim up to a year.
Diminished Value Claim was Denied, Now What?
Well first off you need to sit down and keep calm, ask why it was denied? In 95% of the cases either you did not get an appraisal prepared or you got it from the wrong company. In some cases you can get a right appraisal which must be USPAP appraisal and go back to the insurance company, in other cases you can contact the insurance commission, go to small claims or civil court, open a debt collection against the at fault driver. There are many ways to get your money back.
The insurance company says I don’t have diminished value until I sell my car?
This is not true in tort law, the date of loss or first occurrence is when the negligent driver crashed into you making you loose the value of your car. Many insurance companies try everything they can to not pay you for diminished value and that is why you must go with a company that can help you get the money that is owed to you.