Diminished Value

Are you getting ripped off? What is Diminished Value?

Statistics:

• More than 42% of repaired cars are unsafe to be on the road
  
• More than 70% of repaired cars lose market value
  
• On average, consumers lose thousands of dollars per car!
  
• SCR stats report the average diminished value is $6,486.54
  
(Safe Collision Repairs)

We at Safe Collision Repairs not only work with consumers and attorneys, but also body shops and auto dealers with various issues regarding safe collision repairs, proper tooling, equipment, business marketing and more.

Our Services:

• Diminished Value Calculations
• Lemon Law Investigations
  
• Post Repair Inspections
  
• PrePurchase Inspections
  
• Auto Damage Assessments
  
• Expert Court Testimony
  
• Telephone Consultations

Additionally, we are striving to dispel the deception insurers have spouted to their policyholders and the media regarding diminished value to protect their own interest. If you want to collect on a claim for diminished value, the burden of proof is on you to authenticate your loss and we're here to help.

Tips to Remember:

• Document EVERYTHING!
  
• Handle all correspondence in writing
  
• Do NOT debate the insurance company
  
• File complaints if you feel you have been wrongly denied
• Involve your local media
  
• Don't give up! Persistence pays off.

Here in one concise package are the facts about diminished value claims. What is diminished value? Summed up neatly, diminished value is the reduction in a vehicle's market value, measured by the difference between the auto's worth immediately prior to the loss and its value immediately after. Simply put, Diminished Value is the best-kept secret that your auto insurance company hopes you never learn.

With a flood of misinformation about diminished value, consumers often find it difficult to understand their rights and collect this loss after an auto accident and repair. With more than a decade of experience in calculating diminished value losses and helping consumers get a fair shake, Automotive Collision Consultant, David A. Williams offers consumers the answers to everything they need to know about Diminished Value. For specific information on this and related topics go to www.safecollisionrepairs.com and post your questions on the interactive BLOG or click on "CONTACT" in the menu across the top of the page.

This comprehensive website put together by professionals in the auto repair industry communicates the importance of using top quality tools to achieve safe auto repairs. CLICK IMAGE

After consumers' cars have been damaged and repaired and they inquired about their right to file diminished value (DV) claims, they often hear opinions that discourage and dispirit them. The opinions usually come from those they know and trust - relatives, friends, coworkers who have been involved in car accidents, body technicians and family mechanics, even adjusters and insurance agents.

Although we want to believe these people have our best interest at heart and actually know what they are talking about, their opinions on diminished value are, more often than not, incorrect and misleading. This monsoon of misinformation puts consumers seeking facts about DV at a severe disadvantage and makes it unjustifiably hard for accident victims to collect money they are due and finalize insurance claims.

In February 2007 I was surprised to discover that one truth-seeker went to Yahoo Answers for a DV opinion. He posted a sincere question that beckoned an honest reply:

Has anyone won a diminished value claim in court?

Unfortunately, I didn't see the post until it was too late for me to post a response. However, a ten-year veteran of Farmers Insurance Company did courteously reply. By courteously, I mean it was nice of him to post a response, though it would have been much better if he had collected correct the information first. This claims guru known only as "Ryan" offered an inside perspective into how Farmers handles diminished value claims - though the methodology, he doubted, differed much from how diminished value claims are handled by most other insurance companies.

A third-party claimant located in California bearing the moniker "Talkaboutnews," described a disturbing situation beneath the probing headline that read:

I was rear-ended and the damages were $13,000. Vehicle was repaired and I attempted to negotiate with Farmers Insurance for DV. They stonewalled me. Next I hired a specialty firm to give me a DV claim report, which they claimed would have the insurance company jumping on the phone to call me and settle out of court. They did not, they offered me nothing. Now I have sent a demand letter to the driver for the claim-which is also supposed to get his insurance company jumping on the phone to settle out of court. But what if they don't? If I do go to court, what are my chances? A lawyer told me small claims is great with this stuff, however, I find it very strange that googling seems to find no one out there talking about winning DV in court. It seems that you either deal with a good insurance company and they will settle with you immediately, or you struggle against them and get nothing. Farmers even cheated me out of a week's car rental, saying the "repair took too long"!

Ryan writes:

I worked in claims for Farmers for nearly 10 years and was on the insurance side of this many times. I may be able to offer an inside perspective on this but doubt that it differs from other insurance companies.

You should check with your state to be sure a claim like this is valid. Some allow it but cap how old a car you may claim this on (such as only those vehicles 6 model yrs and newer can make the claim). Assuming it is, you're doing exactly what I would do in your situation. The problem is proving it. First, you have to realize the loss by selling or trading the vehicle. Until you do that, your loss is on paper, just like a stock or mutual fund may be. Your loss today would be greater than, say, two years from now. To prove your case is often difficult.

A sworn/notarized letter (or simply on dealership letterhead) from one or two local, reputable used car sales mgrs stating the pre and post-accident value may suffice. In person testimony is better. You may luck out in Small Claims Court (SCC) and win with what you have but the burden of proof is on you.

You would have to sue the driver of the other car, NOT Farmers. Furthermore, Farmers may bump the matter to circuit court to more formally address the loss and that would force you to decide to rep. yourself or retain counsel. The reasoning for this is SCC is a crapshoot and decisions generally can't be appealed. I've seen people win these and, more often, lose them. We've paid those that presented good support of their loss w/o going to court and resisted others that poorly supported their claim. It's entirely a case by case thing in each state. It rests on the strength of your proof and they won't be jumping on the phone to settle unless you have a well documented loss AND you've sold/traded the car.

Check your state's property damage statute of limitations to see how long you have, assemble your documentation, make an appt with the adjustor to meet in person and ask that his supv and/or mrg. be present as well, make a reasonable presentation of monetary demand (usually 10-20% of the vehicle value) in a professional and cordial manner. Ask questions of them as to what you're missing, if anything, to prove this and be prepared to negotiate. A hot-headed demand in the clouds will likely get you the door. You may not get everything you came for and they may pay more than they'd like but that's usually a sign of a good settlement (if they're willing to pay at all). Your last resort is to sue in SCC. Good luck, my friend.

Lame as it was, Ryan's response was chosen by the asker as the best post. Why was "Talkaboutnews" content to accept this answer as the truth? Perhaps, Ryan's lengthy reply made his comments seem more detailed than those of all the others who responded. At any rate, it matters little since Yahoo has closed the question to new replies. Even though there was little that Ryan said that could be considered truth, it now stands as the gospel.

Ryan wasn't the only one tossing lies around regarding consumer's rights on payment for diminished value. Despite each of the majority of responders listing sources to back up his/her opinions, sadly, only inaccurate information was offered. Having worked with DV claims for nearly ten years at Farmers, Ryan proudly cited experience as his source.

In the remainder of this article, we will look at the chief misstatement presented by nearly all of the posters on Yahoo, namely that DV is NOT recognized as a valid claim in certain states. Additionally, I will provide accurate information readers can share when they meet consumers looking for truthful diminished value facts.

This fact has never been in question: Truth - Every state court recognizes and allows claims for diminished value. The confusion that often exists in DV claims is toward whom the lawsuit must be directed in order to collect payment.

In both third and first-party claims, the most essential part of getting paid is proving the loss. It is the vehicle owner's burden to prove an inferior condition or a lessened market value exists and to what degree. Is the deficiency a cosmetic problem like mismatched paint or is safety compromised? With either situation, you are likely owed some compensation. However, the amount you collect may be vastly lower with cosmetic damages than with structural damages.

It likely the accident the vehicle was involved in destroyed portions of the warranty that can never be replaced, IF the consumer's car was covered by a factory transferable warranty purchased as part of the sticker price when they bought the car. The initial cost of this warranty is usually around 12 percent of the new vehicle's sticker price.

In third-party claims, the negligent party or tortfeasor is responsible for the payment for accident related damages and diminished value. Whether the negligent party has insurance is of no consequence to the victims of his/her careless actions. Reason: The victims do not have an insurance policy with the negligent party's insurance company. Therefore, they are not in a position to make demands for payment directly from that insurer. The tortfeasor's insurance carrier is responsible for insuring (protecting) the interest of him/her only. Click here to read the rest of this www.safecollisionrepairs.com feature article, Diminished Value Gets Bum Rap In Media.

www.BestHybridCarDeals.com

www.AutoRepairResources.com

www.ConsumersGuideToAutoRepair.com

www.CollectDiminishedValue.com

www.SafeCollisionRepairs.com

www.CheapestWayBodyShop.com

In Rakich v. Anthem Blue Cross and Blue Shield, 10th Dist. No. 06AP-1067, 2007-Ohio-3739 the 10th District Court of Appeals held, in a 3-0 decision, that Plaintiffs may recover for the diminished value to their car after repair.

The Rakich Court noted that the traditional measure of property damage was either the cost of repair or the difference in value between the time immediately before and after the damage, but not both. Rakich argued that while she had been compensated for the cost of repairs, she still had not been made whole. The Court's ruling followed the common-sense argument that a wrecked-and-repaired car is not worth as much as a car that has never been wrecked, and held that this difference in market value is a compensable damage.

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