What is Diminished Value?

Diminished Value is the decrease in an automobile’s market value happening after the car or truck is damaged and repaired, normally known as accelerated depreciation. A sensible man or woman will not likely pay the same amount for your wrecked, then repaired car or truck, as they will for your car or truck without a previous accident history. Even when the repairs are ideal, your vehicle will still lose value. To collect diminished value following a auto accident, insurance providers typically request a diminished value report. These reports are often produced after an impartial 3rd party appraiser appraises the automobile and establishes the loss in value.

Do I have a Diminished Value Claim? This is normally the first question we’re asked when contacted by a client. There are a lot of variables when answering this question, and even if you do have a claim, it may not be worth pursuing. The main questions to ask yourself are:

1. Was my vehicle worth LESS than $5000 Dollars before the accident? Most people know if their vehicle is worth more than $5000. If you’re unsure, call us, we’ll help you determine an approximate pre-accident value for your vehicle.
2. Is there less than $1000. worth of damage to the vehicle? Unless your car is worth more than $15,000, chances are the damage will not affect your resale value significantly enough to warrant pursuing a Diminished Value Claim.
3. Did my vehicle have a severe previous damage history totaling more than the current damage before the collision? If your car had a history of a previous severe collision prior to the accident, you probably don’t have a claim.
4. Did the Car Have a Branded or Salvage Title prior to the Collision? Again, this goes with the previous question and you would probably not have a valid claim.
5. Is my car older than 10 years old? While there are older collector cars and specialty vehicles that can have Diminished Value, on the norm, if the vehicle is older than 10 years old, it probably is not worth pursuing a Diminished Value Claim.
6. Has it been several years since the accident? If it has, you should consult your state’s laws as to whether the Statute of Limitation has run out in your area.
7. Has the vehicle been declared TOTALED? If your vehicle has been declared totaled, you would not be eligible to file a Diminished Value Claim, but you could get a Total Loss Appraisal to help you recover the full value of your vehicle.

The Diminished Value Calculator. In the last year, many Diminished Value Calculator scam sites have popped up all over the internet claiming to have an automated system to determine Diminished Value. Many of these systems use a variation of Formula 17C which was developed by State Farm but which has since been shown to be flawed. Insurance companies love this formula because it normally works in their favor and can cost you thousands.

Every one of our appraisals are unique and are developed and signed by a licensed, government authorized, Vehicle Appraiser. Turn around time is normally 2 business days for completion and includes:

• Inherent Diminished Value Report signed by a licensed Vehicle Appraiser.
• The determination of the Pre-loss value.
• The determination of the Post-loss value.
• A guarantee that the appraiser has the scope and knowledge to appraise your vehicle.
• A hard copy of the report mailed to you at no extra charge. (within the lower 49 states)
• A PDF of the report emailed to you and/or your adjuster. *
• A copy of the report faxed to your adjuster if requested.
• A Sample Demand Letter