Diminished Value Claims--Case Law
#16
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When the parties to a contract disagree on its interpretation, then the dispute is submitted to a "referee." For this job, just like in the NFL or the NBA, you want somebody with training and experience and knowledge, and everybody agrees to abide by the decision, like civilized adults. Judges can be wrong, and we have appeals courts, just like the NFL has "instant replay," only appeals take a lot longer.
We all get stuff wrong, and we all don't agree on everything, but the judicial branch, state and federal, even with all its flaws and with a few wacko judges, is pretty good most of the time, and it's all we have. Otherwise we will have to settle things through the manly art of fisticuffs, or armed combat or duels at sunrise, and we've already tried and rejected those systems of dispute resolution.
We all get stuff wrong, and we all don't agree on everything, but the judicial branch, state and federal, even with all its flaws and with a few wacko judges, is pretty good most of the time, and it's all we have. Otherwise we will have to settle things through the manly art of fisticuffs, or armed combat or duels at sunrise, and we've already tried and rejected those systems of dispute resolution.
#17
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We now live in a society that attempts to legislate away all risk in life. So we insist that every company supplying a good or service covers every possible eventuality. This is killing our economy. I'm not against insurance companies OFFERING DV coverage, for a fee. If we want to protect ourselves against the risk of loss of the value of our vehicle, we should be willing to pay for it. I do this by purchasing personal liability insurance. The insurance company is obligated to give this to me (yet). I have to pay for it. This is what free enterprise is about. If insurance companies want to start offering this free of charge as a way to differentiate themselves in the marketplace, that's great. I'm against an activist court telling the insurance companies what they must do.
By the way, it's not always true, or can be proven, that your vehicle will be diminished in value after an accident. I know this is anecdotal, but I had a Nissan Maxima that was in a serious accident. It was repaired very well. When I sold it a year later, I did not take a hit on the value. So, we shouldn't assume that DV will occur simply because the car has been repaired.
By the way, it's not always true, or can be proven, that your vehicle will be diminished in value after an accident. I know this is anecdotal, but I had a Nissan Maxima that was in a serious accident. It was repaired very well. When I sold it a year later, I did not take a hit on the value. So, we shouldn't assume that DV will occur simply because the car has been repaired.
#18
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#19
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Thanks a lot for the advice. Will research the link. Thanks again.
#20
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I did hire an expert to appraise the car after repairs were made, and I had to submit that to my insurance. All in all, it was a painless process outside of the few hundred dollars I spent on the appraisal.
*edit* here was a forum post on g35 driver, where I talked about it a bit
http://g35driver.com/forums/lounge-o...ue-claims.html
#21
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I successfully received a few thousand dollars in diminished value here in Texas a couple years ago. I was the victim of a hit & run and was still able to claim diminished value, since the accident was not my fault. I sustained $12k in damages on my 2007 Toyota RAV4.
I did hire an expert to appraise the car after repairs were made, and I had to submit that to my insurance. All in all, it was a painless process outside of the few hundred dollars I spent on the appraisal.
*edit* here was a forum post on g35 driver, where I talked about it a bit
http://g35driver.com/forums/lounge-o...ue-claims.html
I did hire an expert to appraise the car after repairs were made, and I had to submit that to my insurance. All in all, it was a painless process outside of the few hundred dollars I spent on the appraisal.
*edit* here was a forum post on g35 driver, where I talked about it a bit
http://g35driver.com/forums/lounge-o...ue-claims.html
#22
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As a professional who prepares automobile diminished value reports for a living, perhaps some of this information will prove valuable in your quest to recover your car's lost value.
1) Obtain an appraisal from a licensed appraiser. One who is qualified to settle insurance claims in any state will be licensed as an independent appraiser or independent insurance adjuster. They don't need to be licensed in your own state because many appraisers offer nationwide service. There are plenty of private associations, organizations, etc. whose members pay a yearly fee to be designated as certified or approved appraisers. It is not the same thing as being licensed. Insurance companies and, more importantly, magistrates and mediators respect reports from licensed professionals.
2) Make certain that your appraiser obtains the diminished value data from reputable new car dealers who specialize in your make of car. Reports that are prepared using either formulas or automobile auction results carry far less weight than the opinions of new car dealers. The report should contain at least six solid, verifiable dealer quotes. Obtaining data in this manner insures the quote is being made specifically for your exact car and the damages that were repaired. Auction results have been judged as too generic to apply to any one specific loss. The amount of diminished value may be the same as the one prepared using dealer quotes but you will only receive an offer for a small portion.
3) Be prepared to bring an attorney into the picture. The average automobile diminished value loss is $3,500,00 give or take according to vehicle type, damages involved, etc. Many of my appraisals exceed $10,000.00.If you have provided the insurance adjuster with a fair automobile diminished value appraisal against which their settlement offer pales, have your attorney put them on notice. Insurance companies don't like paying attorney fees any more than you do. If your appraiser's report is fair and difficult to refute, they will fold. One thing working to your advantage is the insurors knowledge that they could likely be on the hook for your attorney's fees as well. Unfair claims practices are highly frowned upon.
All of us know that insurance companies aren't overly generous. It's distasteful having to force people to play fair but eminently preferable to taking an unnecessary financial beating.
1) Obtain an appraisal from a licensed appraiser. One who is qualified to settle insurance claims in any state will be licensed as an independent appraiser or independent insurance adjuster. They don't need to be licensed in your own state because many appraisers offer nationwide service. There are plenty of private associations, organizations, etc. whose members pay a yearly fee to be designated as certified or approved appraisers. It is not the same thing as being licensed. Insurance companies and, more importantly, magistrates and mediators respect reports from licensed professionals.
2) Make certain that your appraiser obtains the diminished value data from reputable new car dealers who specialize in your make of car. Reports that are prepared using either formulas or automobile auction results carry far less weight than the opinions of new car dealers. The report should contain at least six solid, verifiable dealer quotes. Obtaining data in this manner insures the quote is being made specifically for your exact car and the damages that were repaired. Auction results have been judged as too generic to apply to any one specific loss. The amount of diminished value may be the same as the one prepared using dealer quotes but you will only receive an offer for a small portion.
3) Be prepared to bring an attorney into the picture. The average automobile diminished value loss is $3,500,00 give or take according to vehicle type, damages involved, etc. Many of my appraisals exceed $10,000.00.If you have provided the insurance adjuster with a fair automobile diminished value appraisal against which their settlement offer pales, have your attorney put them on notice. Insurance companies don't like paying attorney fees any more than you do. If your appraiser's report is fair and difficult to refute, they will fold. One thing working to your advantage is the insurors knowledge that they could likely be on the hook for your attorney's fees as well. Unfair claims practices are highly frowned upon.
All of us know that insurance companies aren't overly generous. It's distasteful having to force people to play fair but eminently preferable to taking an unnecessary financial beating.
#23
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I would expect insurance policies to exclude 1st party diminished value claims and at the same time offer "diminished value coverage" like homeowners policies that are written for replacement cost claims versus the the actual cash value. They certainly adept at seeing a new revenue stream when it appears.
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diablo1
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