Common Questions and Answers Regarding Auto Diminished Value Claims
Should I accept the insurance company Diminished Value offer?
An insurance company’s diminished value offer is customarily much lower than a vehicle’s actual diminished value. The main way that an insurance company makes a profit is by ensuring the premiums received are greater than any claims made. Therefore, the fundamental position of insurers is to be frugal when it comes to paying claims.
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How can I calculate my car’s Diminished Value?
There are scores of auto appraisers using short cuts such as formulas, algorithms, online ad comparisons and book value differences. All of these methodologies have flaws. The most effective manner in which to obtain a fair diminished value figure and be confident that the insurance company will honor the evidence you provide is to hire an independent appraiser that does actual research. Six unbiased dealer quotes has proven to be the most effective approach to confirming our research. You may use websites such as Carvana to get a rough idea but this information will not result in an insurance company recognizing your evidence as valid.
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Can you win a diminished value claim in court?
From small claims courts to circuit civil courts, auto diminished value cases have proved that successful compensation can be obtained through litigation. In general, a plaintiff’s chances of prevailing are slightly better in civil court as the five rules of evidence are admissible, authentic, complete, reliable, and believable. In small claims court, these rules are somewhat relaxed.
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Do diminished value appraisers cost money?
The spectrum of costs to obtain an auto diminished value appraisal range from a few hundred dollars up to thousands if the appraiser is working on a commission basis.
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What is the statute of limitation for making a diminished value claim?
Different states have singular statutes of limitations that range from one year to six years.
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What happens if my diminished value claim is denied?
It is not unusual for insurance companies to deny auto diminished value claims – sometimes without legitimate justification. Consumers should make certain that their independent auto appraiser will also act as their advocate when it comes to fighting back.
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Can I make a complaint about Diminished Value to the state insurance department?
Complaints for Unfair Claims Practices are an effective way to raise awareness of your claim to insurance company supervisors. These personnel are often the decisionmakers with the authority to approve payments that can reach into the tens-of-thousands of dollars.
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Which is the best Diminished Value appraiser?
AUTODIMINISHEDVALUE.COM has demonstrated that our opinions, buttressed by comprehensive research with multiple unbiased new car dealers, affords car owners the most probative evidence. Less successful are Diminished Value Appraisers that use formulas, algorithms, online ad comparisons and book value differences.
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Are Diminished Value claims because of Carfax?
In December 1996, the Carfax website was launched to offer consumers the same vehicle history reports already available to businesses. Inherent Diminished Value claims followed shortly thereafter once car owners realized that they could be compensated for their vehicle’s loss in value. Without Carfax and other vehicle repair history reports, used car buyers would have no way to know if they were buying previously wrecked cars.
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Can I make a diminished value claim if my car was previously damaged?
Yes. There are no insurance regulations or case laws that prohibit car owners whose cars were in a previous accident, to file for Diminished Value because of a second accident.
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Do I have to sell my car to get Diminished Value?
No. A car owner in Minnesota was told by State Farm Insurance that she was not eligible to make a third-party diminished value claim unless she sold her vehicle to demonstrate that she suffered a loss. This turned out to be false information. No state requires a vehicle owner to sell their car or truck in order to be compensated for diminished value.
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Is a car’s diminished value considered property damage?
The definition of diminished value has taken on an even great significance since car owners began filing diminished value claims against the insurance companies of at-fault drivers. These are known as third-party claims. Insurers are obligated to consider payment of these claims under the property damage portion of their insured’s policy which states that they must restore the victim’s car to its pre-accident value. This includes not only making sure that adequate compensation is provided for quality repairs, it also covers the inherent diminished value that is part and parcel of the car now having a “bad Carfax.”
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Can I claim Diminished Value against my own insurance company?
In Georgia, car owners have the right to file first party diminished value claims. In other states, however, only in cases where the responsible party is uninsured or underinsured, if you have UMPD coverage, it will cover the balance of the settlement amount. UMPD (Uninsured/Underinsured Motorist Property Damage) coverage is not available in every state.
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