When a vehicle has been damaged, the portion of the car’s pre-loss value (not restored through the repair process) is referred to as diminished value. There are three different categories of diminished value:
Immediate Diminished Value
This is determined by the difference in the existing resale value of your vehicle BEFORE damage occurred compared to the current state and value of your car AFTER the damage occurred. Although courts are generally not the most common route for recovery of property damage, immediate diminished value is the primary measure of damage when seeking reimbursement from a negligent party in the legal system.
Inherent Diminished Value
Although your vehicle may have had sufficient repairs, the value has diminished simply based on the fact that there is now a history of damage. This is the most recognized form of diminished value and is also the standard for any supplemental form of diminished value to be added. This brings us to a common form of supplemental value called “repair related diminished value.”
Repair Related Diminished Value
If you have had your vehicle repaired, but not to the highest standard, you may accrue additional reductions in the resale value of your car. This may include anything from a cosmetic flaw to major structural defects.
Most likely your vehicle has a diminished value if you have not had a history of damage prior to your accident. You can get your free diminished value estimate by calling Hansen price at 1-888-706-4530 or contacting us online.
Collecting from an at-fault party’s insurance company:
You may collect in every state, excluding Michigan, when the at-fault party does not have insurance.
You may collect under your own insurance policy’s uninsured motorist coverage in the following states: Alaska, Arkansas, California, Delaware, District of Columbia, Georgia, Hawaii, Illinois, Indiana, Louisiana, Maryland, Mississippi, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington and West Virginia.
You may collect from your insurance policy in Washington, Georgia or Kansas. (Kansas may be subject to policy limitations).
In order to collect on your diminished value, you must obtain a diminished value report from a reputable professional with details regarding the extent of your vehicle’s damage and how that information was obtained. In this report you must have an independent recognized authority that supports the assessment. The experts at Hansen Price can inspect your vehicle and address potential repair related diminished value coinciding with your car’s basic inherent diminished value.
It can become a daunting task to claim what is owed on your diminished value. Hansen Price is a family oriented company whose main concern is finding the solutions to your needs. We are well versed in not only advising and guiding your needs for auto service, but in the laws that will protect you and your family from accruing costly repairs and unwarranted stress. Hansen Price believes in value. Today there are many discount diminished value appraisers that don’t obtain reports that are useful. In fact, the insurance industry is often underwriting some late entries in order to minimize payments being sent out.
Avoid “we do it all” or “contingency fee” diminished value appraisals.
It may be helpful to obtain your report from your insurance’s preferred DV appraisal service.
Don’t use an appraisal service that still uses the banned 17c formula.
Understand that insurance companies will want to pay the “low ball” diminished value settlement.
Insurance companies will likely deduct the contingency fee and / or the appraisal fee from your settlement.
The majority of our clients are able to negotiate their settlement without litigating. The remaining clients were able to file suit in small claims court, which does not involve seeking an attorney. Many of the small claim files are settled before court, because the act of filing alone had coerced the at-fault insurance company to reach a settlement.
In many instances for our clients, the insurance company was held responsible to pay the diminished value cost, court costs and our fee.
If the accrued diminish value exceeds the small claims court limitations, you may want to seek legal council. Hansen Price will be by your side through the entire process to insure that your case proceeds as smoothly as possible and will help your attorney prosecute.
When you have legal representation in the states of Kansas and Oregon and an insurance company fails to pay your diminished value claim within 30 days, they will be ordered to pay all attorney fees and expenses, resulting in you retaining 100% of the settlement.
The Georgia Supreme Court ruled in the case of Mabry v. State Farmer that insurance companies protect the right of the policyholder to claim diminished value reimbursements. The court ordered State Farm to create a system to measure diminished value.
State Farm developed an ultra-conservative formula named 17-C, which became the platform for other diminished value formula concepts.
Although many insurance providers have embraced and developed their own version of the 17-C formula, some alleged consumer advocates have used this formula approach for their own advantage. This is one reason why it is important to have a reputable and ethical company like Hansen Price on your side.
We work very hard to make sure that our clients are placed with the correct team and are treated with the utmost care. Many “discount” diminished value companies that charge a very low price have inflated formula based appraisals that will not hold up to court standards and simply have a formula to avoid fraud charges. We also help you avoid services that charge contingency fees, accept low offers on your behalf and deduct their contingency and appraisal fees from your settlement.