DIMINISHED VALUE

by | Aug 3, 2020

Is there more money the insurance company owes you from your last auto claim? You could be entitled to hundreds or even thousands of dollars in diminished value to your vehicle.

What is Diminished Value?

Diminished value, in general terms, is the difference between the current value of an object as compared to the value before a particular event or time period. More specifically as it relates to your vehicle, how much less is your car worth after the repairs to your vehicle. There are formulas that can try to calculate your loss, but they are flawed in nature. There are several reasons these formula calculations are flawed but let us focus on how to get an accurate assessment of the diminished value. You should have a reputable and experienced auto appraiser calculate the loss amount. The diminished value is best calculated by averaging quotes from reputable car sales managers and comparing that average to the actual cash value of the vehicle just prior to the loss. The quotes obtained from the sales managers are accurate sale values for a vehicle after a repair and perhaps with a Carfax record.

To better understand the diminished value better, let us look at it from a car buyer’s standpoint. Now imagine you are at a car dealership and you want to buy a used 2019 Nissan Altima. The salesman shows you two vehicles that are identical in color, mileage, options, and everything else with one exception. That exception is that one of those vehicles was in an accident and has been repaired. Now if both vehicles had a price of $19,500, would you accept the damage and repaired vehicle and not care that you could have had the undamaged vehicle? The answer is obviously no! Even if the repairs were done over and above industry standards for auto body repairs. So, the question is, who much would the salesman need to reduce the repaired vehicle’s price for you to buy the damaged one instead of the undamaged one. Now obviously there are many factors that would come into play like how much damage, how much of the vehicle was painted, was there structural damage, was there mechanical damage and was the factory warranty affected. Once you have the answers to your questions, now you can determine how much you are willing to pay for the damaged vehicle instead of buying the undamaged one. Maybe that adjusted price for most people is $17,500. The diminished value is therefore $2,000. Because of factors such as, the classification of a vehicle like exotic, luxury or standard auto and current market trends and demands are not considered in the standard formulas like the Georgia 17c, a simple multiplier formula cannot possibly calculate the diminished value accurately.

Does Every Vehicle Have A Diminishment in Value After Repairs?

Is a repaired and refinished vehicle worth less that one never repairer? The answer is simple. Yes! So, every vehicle that was involved in a loss and had repairs have suffered a diminishment in value. There is a wrinkle in this though. What if the vehicle has already been repaired once, twice, or more before the recent damage? There is a diminishment in value, but it would be less than if the recent damages were the only damage in the vehicle’s history.

Does Diminished Value Apply to My Vehicle Claim?

Every state is different in their rulings, statutes, and laws on this matter. Some states recognize diminished value for first-party and third-party claims, some for just third-party, and other states do not recognize diminished value as recoverable damage under an insurance policy. The state in which the at-fault party’s insurance policy is written would often reflect the availability for diminished value coverage. Our office can assist you with recognizing which state covers diminished value and for which party.

How Old Can My Accident be to File a Diminished Value Claim?

The statute of limitations varies state-by-state. For example, Florida Statutes section 95.11 says that a four-year time limit applies to injury (damage) to personal property. So, it is important to check with the applicable state statue for where the loss occurred.

How Much Will I Get?

The amount you can be awarded for your diminished value loss is directly related to the severity of the damage and the market value of the vehicle before the loss. I have seen settlements for as little as $200.00 to as much as $60,000.00. The average or a standard vehicle is about $1,500. The diminished value on exotic and luxury vehicles is much more complicated, but they often start at about $8,000 and can exceed $50,000. $15,000 would be a typical diminished value settlement for an exotic vehicle like a Lamborghini Huracan.

Who Pays Me for My Diminished Value?

The at-fault insurance company is likely to payout on your diminished value in most states. Ultimately, it is the at-fault driver who is responsible for the diminished value, and is the policy and state allow for the coverage, the insurance carrier will pay.

How Do I Submit a Diminished Value?

We have a Diminished Value Submission Form on our website. Just complete a few questions and we can qualify your claim. You can also call our Diminished Value hotline at (305) 599-4090.

If you need legal assistance for your Florida diminished value claims, check out this amazing attorney, Craig Dermis, that specializes in diminished value claims. His law firm is The Collision Law Center and he can be reached at (305) DV-Money.

 

28 Comments

  1. Pianino Tematy

    Thank you pertaining to taking turns that excellent subject material on your web-site. I discovered it on the search engines. I will check back again if you post more aricles.

    Reply
  2. Typy Metali

    Nasze zycie zawsze pokazuje rezultat naszych dominujacych mysli. – Soren Kierkegaard

    Reply
  3. diziler

    I was excited to uncover this website. I wanted to thank you for ones time for this wonderful read!! I definitely savored every part of it and i also have you book marked to check out new stuff on your website. Dody Boony Frodeen

    Reply
  4. mp3

    Incredible points. Outstanding arguments. Keep up the amazing spirit. Loralie Terrill Anabella

    Reply
  5. diziler

    Nice post. I learn something new and challenging on sites I stumbleupon every day. It will always be useful to read through articles from other writers and practice a little something from their websites. Portia Cori Aunson

    Reply
  6. Socjologia

    Hi, I just read texts on your blog and I became interested in the topic. I like your article and I am thinking whether I could use your words in my work? Would it be probable? If yes, please contact with me. Thank you.

    Reply
    • Charlie Caravella

      You may use portions of my blogs, just cite/refer to my in yours.

      Reply
  7. vikings

    This is why I write. I enjoy helping folks and sharing knowledge about Land, Forestry and Real Estate! Casandra Town Graig

    Reply
  8. Japan Directory

    Its true, whether you need to believe it or not.

    Reply
  9. Filozofia Blog

    I’m having a small issue I cant get my reader to pickup your feed, I’m using google reader fyi.

    Reply
  10. Japonia Portal

    I must say, as significantly as I enjoyed reading what you had to say, I couldnt help but lose interest after a while. Its as if you had a fantastic grasp to the subject matter, but you forgot to include your readers. Perhaps you should think about this from a lot more than 1 angle. Or maybe you shouldnt generalise so much. Its better if you think about what others may have to say instead of just going for a gut reaction to the topic. Think about adjusting your personal thought process and giving others who may read this the benefit of the doubt.

    Reply
  11. Cukrzyca.XMC.pl

    Hey cool blog, just wondering what anti-spam software program you use for comments as a result of i get heaps on my blog. Anyway, in my language, there usually are not a lot good source like this.

    Reply
  12. Blog Szkło

    This is some good stuff. It took me a while to locate this blog but it was worth the time. I noticed this article was buried in yahoo and not the number one spot. This internet site has a ton of decent stuff and it does not deserve to be burried in the searches like that. By the way I am going to save this web site to my favorites.

    Reply
  13. Finanse

    I have been meaning to post something like this on my website and you gave me an idea. Thanks.

    Reply
  14. Wiertarki

    With all the doggone snow we have gotten recently I am stuck inside , fortunately there is the internet, thanks for giving me something to do.

    Reply
  15. Ankeris Merz

    The article is really excellent. Every time I read it, I get information again.
    The best article I’ve read in a long time….

    Reply
  16. Dyslexia

    My sister bookmarked this internet site for me and I have been going through it for the past several hrs. This is really going to help me and my classmates for our class project. By the way, I like the way you write.

    Reply
  17. Jeff

    Incredible quest there. What occurred after? Take care!

    Reply
  18. Francesca

    I am regular reader, how are you everybody? This paragraph posted at this
    web site is really pleasant.

    Reply
  19. Gündem Haberleri

    Hello there! This article couldn’t be written much better!
    Looking through this article reminds me of my previous roommate!
    He always kept preaching about this. I’ll forward this post to him.
    Pretty sure he will have a very good read. Thank you for sharing!

    Reply
  20. Affiliate Marketing

    you are really a good webmaster. The web site loading pace is incredible. It seems that you are doing any distinctive trick. Also, The contents are masterpiece. you have done a magnificent process in this topic!

    Reply
  21. Şifresiz Takipçi Hilesi

    Spot on with this write-up, I actually feel this
    website needs a great deal more attention. I’ll probably be returning to see
    more, thanks for the information!

    Reply
  22. İlahi Sözleri

    Greetings! I know this is somewhat off topic but I was wondering if you knew
    where I could locate a captcha plugin for my comment form?
    I’m using the same blog platform as yours and I’m having trouble finding
    one? Thanks a lot!

    Reply
    • Charlie Caravella

      Sorry for the delayed response. I will check the settings on WP and get back to you.

      Reply
  23. Affiliate Marketing

    Wow, amazing blog format! How long have you been blogging for? you make blogging glance easy. The full glance of your site is excellent, let alone the content!

    Reply
  24. Tyler

    Touche. Great arguments. Keep up the great spirit.

    Reply

Leave a Reply to Jeff Cancel reply

Your email address will not be published. Required fields are marked *