Diminished Value is the loss in resale value a vehicle suffers after an accident.
(PRWEB) January 24, 2013
Every year, there are over Ten Million car accidents in the United States, regardless of the severity, parties involved in the wreck suffer direct and indirect losses.
The direct losses are the physical damage to the vehicle and the bodily injury to the driver whereas the indirect losses are loss of use, loss of income and loss in value.
When shopping for a vehicle, with everything else being equal, car buyers would not pay the same amount for an automobile that's been wrecked and repaired versus an undamaged counterpart. A reduction in the sale price is therefore needed in order to sell the damaged and repaired vehicle.
This reduction in resale value is owed to the vehicle owner by the negligent party in a car accident and is normally paid by the insurance carrier. Loss in value is commonly called Diminished Value.
Courts across the country have decided that repairs could not bring back an automobile to its pre-accident condition. Diminished Value is owed to the vehicle’s owner and measured from the date of loss. Unfortunately, most drivers are unaware of Diminished Value and seldom demand compensation for this loss. In most cases, insurers will attempt to settle the loss is value portion of the claim for cents on the dollar.
Most insurance carriers are currently using an erroneous and inaccurate, percentage based, formula called 17c. This bad formula takes a percentage of the vehicle's pre-accident value. Most valuations are capped at 10% of retail and exclude vehicles over 100,000 miles.
By law, insurance carriers are required to consider evidence a claimants submits, so, to be properly compensated for the vehicle's loss in value, vehicle owners should retain the services of a licensed and independent auto appraiser.
Not only will an independent appraiser properly quantify the vehicle's value in an unbiased fashion, their reports serve as documented proof of the loss and help to serve as evidence if the claim escalates to an official complaint or court case.
In addition to the appraisal report, claimants should send the insurance carrier a time limit demand letter that puts them on notice and serves to start the clock on establishing a bad faith claim down the road. Carriers are required to handle claims in good faith and in a timely manner, many states have bad faith insurance statutes to protect the public against unfair practices.
For more information please contact Antoine Rached at Diminished Value Bureau by calling 678-404-0455 or visit their website at http://diminishedvaluebureau.com/.