Diminished Value is the loss in value to a car also referred to as accelerated depreciation, which is the loss in pre-accident value because no matter how well you fix a car you will never be able to restore it to the pre-accident condition. There are three main types of diminished value.
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1. Inherent Diminished Value: This type of diminished value means that the car was repaired properly but because of the stigma attached to crashed cars and because of a car history report and disclosures sellers must make about a car they sell that the car is worth less because of the car accident.
2. Repair Related Diminished Value: Is when the car was not fixed adequately or non-oem parts were used in some occasions on a car that should have been used only oem parts on such as a classic, exotic or luxury vehicle.
3. Immediate Diminished Value: This is a compound of any diminished value, simply stating that the car can never be made whole to pre-crash condition because of the car accident and sets a standard for collecting pre- accident car value subtracting after accident car value.
How To Collect Diminished Value
The first thing in collecting diminished value is what you do after an accident, the adjusters use formulas to determine total loss on a vehicle and if you talk about diminished value before a car is repaired then that screams TOTAL LOSS before you know it you are out of a car. So our words of advise is wait until your car is fixed then get the report from the body shop and give us a chance, you don’t have anything to loose.
What is a Diminished Value Appraisal?
A diminished value appraisal is one of the most complicated things that exist but not for us, American Insurance Advocate Group are experts in the field. The problem with this type of appraisal is that it must not only be based on dealer sales and inventory but on market value retail and wholesale. Most companies give you an automation appraisal based off of illegal formulas which are known as 17C or worst they give you dealer opinions that are not even in your state. Car’s vary in price by state and monthly so many things must be taken into consideration when creating your diminished value appraisal. Supply, demand, market area, options and previous history. When I say history I don’t only mean previous accidents but if the car was a rental, lease, uber taxi, fleet, commercial or even if it was driven a lot and has excessive mileage, in some cases your cars mileage is below normal and is even worth more. There are many variables that must be examined when preparing your claim for diminished value.
What is a Diminished Value Assessment Report?
A diminished value assessment report is usually an automated formula assigned to cars by year and brand. It falls between 20-35% of the cost of repairs or retail value or even retail value to repair ratio. This is not in anyway accurate and is laughed at by most insurance companies, it can even be deemed as insurance fraud. If you bring it into court it will not be considered proof at all as at best it is considered a guess, though in some cases it comes close to the actual dv amount by pure coincidence and not by fact. A true appraisal has comparable vehicles and comparable crashed vehicles of the same sort, it is reviews by an expert in the field and not based off of you entering information that can be manipulated in order to get more or less on purpose or by mistake. The key foundation in an appraisal is a signature and an actual person that reviews every piece of information.
The diminished value report is only as good as the appraiser that stands behind the work produced and how they can show in fact that it passes the standard of proof, also called the Daubert Standard of evidence.
What are the laws on Diminished Value in all states
If you are not at fault then you are about to change your luck, diminished value laws exist in all states except for Michigan but remember you can still claim a tax deduction. Look below for more information.
All states that allow Diminished Value
Louisiana, Colorado, Florida, Maine, Alaska, Hawaii, Minnesota, Massachusetts, Rhode Island, Maryland, Georgia, Oklahoma, Connecticut, Iowa, Oregon, New Mexico, New Hampshire, New York, Washington, Wyoming, Ohio, California, Arizona, Indiana, Delaware, New Jersey, South Dakota, Texas, Kentucky, Missouri, Pennsylvania, Tennessee, Utah, North Carolina, Virginia, North Dakota, Wisconsin, Mississippi, South Carolina, Idaho, Arkansas, Vermont, Nevada, Illinois, West Virginia, Kansas, Alabama, Montana , Nebraska
If I am at fault can I get Diminished Value?
You are in luck if you live in a select number of states such as Georgia, North Carolina, Kansas and even Washington.
What can I do if the person that hit me has no insurance, did a hit and run or simply I crashed into something other than a car such as an animal?
Not to fear your in luck under your own policy uninsured motorist coverage you can claim diminished value in a great amount of states such as Alaska, Arkansas, California, Delaware, District of Columbia, Georgia, Hawaii, Illinois, Indiana, Louisiana, Maryland, Mississippi, New Jersey, New Mexico, North Carolina, Ohio, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington and West Virginia
Is Diminished Value Loss tax deductible?
Yes, it doesn’t matter if you are at fault or not at fault. It is considered property loss and thus all you need is to get proof of the amount of loss. We also prepare tax deduction reports for you which even if your accident was 3 years ago you can back date the accident on your taxes
How do we calculate Diminished Value?
We use Black Book, Edmunds, Galves and National auto sales along with our dealer network. Since you are a private party and not a dealer, you can only sell private party or trade in. We calculate based off of car options, color, year, make, model, mileage and then we compare your car to others in your area to bring you a court approved diminished value appraisal worthy of your claim and business with us.
Diminished value law: tort vs contractual
What most people don’t know is that contractually carriers can say no to diminished value claims but what you may not know is that while the insurance company may say no under tort law you can sue and win in small claims court against the at fault party which in turn forces the insurance company to pay the obligation which is called subjugation.
In 14 states it doesn’t matter if it is in the insurance contract or not the insurance company must pay 100% of the time.
Another thing that people involved in a car accident might not know is that though a personal injury claim must usually be brought up with 7-30 days maximum depending on the state in the case of diminished value state to state the tort law allows you depending in state to bring a claim on average 2 years up to 10 years after the car accident depending on the car value and mileage as in some cases a car older than 10 years or with over 100,000 miles will not devalue normally because it is worth less than $7500 on average but since that is not always the case as seen with luxury, exotic, collectible and utility vehicles it does not always apply the rules is basically in the market value of the vehicle.
Diminished Value Estimate? No Obligation, doesn’t mean Free use.
Many people try to get a Diminished Value Estimate then use it as legal proof towards the claim with the insurance company, this is not only fraud towards the company you are doing it towards but also it is bad faith against the insurance company since you are getting a Free Diminished Value Estimate with the purpose of buying and the company is providing to you as part of the service not as proof of any determining factor in your claim, except for your purchase decision.
Find out more information about Diminished Value Full Service Appraisal and Claims.
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Insurance Diminished Value
The first step you must understand in any claim is that the burden of proof is on you, insurance companies will not just willingly hand over money and say thank you. If you come up with an amount from looking at trade in values or going to dealerships, it is considered biased and has no holding for an insurance company or in court.
The insurance company is built on proof of loss, it insures everything you own in one way or another. When you purchase something from a store, the owner is insured and the products are insured to make sure if you get hurt, if the merchandise goes bad, a shipment is lost in the mail or anything alike of the millions of possibilities that can happen, the insurance industry is there.
For the majority of the time the insurance is never used and so the insurance gets to keep all premiums but when a claim arises especially for diminished value, which is not a loss that you will see without selling your vehicle first it makes the insurance company angry to have to pay you and they will find every reason possible to pay you little to nothing and by you not preparing yourself with any type of proof, it gives the insurance company that impression that if you are not willing to pay for a report to get thousands back, you are not willing to go to court and you will not fight a denial.
There are some of the insurance companies we do Diminished value claims for or against such as GEICO, State Farm Insurance, Allstate, RLI Corp., New York Life Insurance Company, Safeway Insurance Group, Shelter Insurance, Elephant.com, The Regence Group, American National Insurance Company, TIAA-CREF, Western & Southern Financial Group, Penn Mutual, Progressive, Markel Corporation, K&K Insurance, Chubb Corp., American Income Life Insurance Company, QBE, Commerce Insurance Group, Trupanion, Pacific Life, Aetna, Kentucky Farm Bureau, Acuity, Berkshire Hathaway, Sun Life Financial, Assurity Life Insurance Company, HCC Insurance Holdings, Westfield Insurance, Prudential Financial, Farmers Insurance Group, Arbella Insurance Group, Infinity Property & Casualty Corporation, Cincinnati Insurance Company, Northwestern Mutual, Knights of Columbus, John Hancock Insurance, Hiscox Small Business Insurance, The Hartford, West Bend[disambiguation needed], 21st Century Insurance, Combined Insurance, Conseco, AXA Equitable Life Insurance Company, Liberty Mutual, First Insurance Company of Hawaii, Allied Insurance, OneBeacon, Chartis, West Coast Life, Western Mutual Insurance Group, ACE Limited, Country Financial, The Norfolk & Dedham Group, Symetra, GAINSCO, Mutual of Omaha, Bankers Life and Casualty Company, General Re, Grange Mutual Casualty Company, Nationwide Mutual Insurance Company, Assurant, Esurance, Unum, Encompass Insurance Company, Erie Insurance Group, Mercury Insurance Group, Selective Insurance, Genworth Financial, Gracy Title Company, Physicians Mutual, American International Group (AIG), Amica Mutual Insurance, White Mountains Insurance Group, Federated Mutual Insurance Company, Evergreen USA RRG, Guardian Life Insurance Company of America, IntelliQuote Insurance Services, Omega, Safe Auto Insurance Company, FM Global, Applied Underwriters, Kansas City Life Insurance Company, American Automobile Association, Colonial Life & Accident Insurance Company, Ameritas Life Insurance Company, Aflac, USAA, Safeco, National Life, The Travelers Companies, Southern Aid and Insurance Company, Standard Insurance Company, Modern Woodmen of America, GMAC Insurance, Protective Life, Auto-Owners Insurance, Sentry Insurance, Manhattan Life Insurance Company, Philadelphia Insurance Companies, Lincoln National Corporation, American Family Insurance, MetLife, Principal Financial Group, New Jersey Manufacturers Insurance Company (NJM), Oxford Health Plans, Alleghany Corporation, Pacificare, Primerica, Merchants Insurance Group, PEMCO, Jackson National Life, CNA Financial, Reliance Insurance Company, Philadelphia Contributionship for the Insurance of Houses from Loss by Fire, Affirmative Insurance, Hanover Insurancective Insurance, Shelter Insurance, Southern Aid and Insurance Company, Standard
Car Diminished Value
We provide Diminished Value for Luxury brands such as BMW, Mercedes-Benz, Jaguar, Land Rover,Cadillac, Audi, Lexus, Volkswagen, Volvo, Infiniti.
Some of the Exotic brand we cater to but not limited to Bentley, Maserati,Porsche, Lamborghini, lotus, Ferrari, Maybach,Tesla, Bugatti.
We also do all Classic, Antique, Import and Domestic brands Ford, Chevrolet, Ram, Buick, Dodge, GMC, Chrysler, Lincoln, Fiat, Alfa Romeo, Mitsubishi, Honda, Toyota, Acura, Daewoo, Hyundai, Kia, Mazda, Suzuki, Nissan, Scion, Mini, Smart, Jeep and Subaru but simply because your brand is not listed doesn’t mean we don’t do it .