Has your vehicle has been under serious damage because of an accident? Fret not! You might be able to cover the cost of repairs under the insurance policy, but how will it cover the loss of value? Indisputably, the value of your vehicle will depreciate once it has undergone surgical repairs owing to accidents. Apart from the insurance, one more expense you can bear associated with your vehicle is diminished value appraisal. Before you start looking for diminished value appraisal near me, here’s what you have to consider while applying for the claim. It is vital to learn how a diminished value appraisal near me can help cover the loss of value.
What is a diminished value claim?
As mentioned above, your insurer will cover all the expenses related to the repairs, but you will be responsible for depreciated value. After the accident, the worth of your vehicle will get reduced only because of the term “Accident.”
The financial difference between the ACV or Actual Cash Value and market value after the accident is termed as “Diminished value.” The impact of the accident on the vehicle is directly proportional to the diminished value of the vehicle.
Different types of diminished value claim:
Inherent diminished value:
The inherent diminished claim refers to the depreciation of a car’s market worth after an accident. Although the car is restored to good or new condition, its accidental history becomes a prominent price downfall.
Immediate diminished value:
Well, this type of claim refers to an immediate price drop of the vehicle after an accident, even before your repairs are done, or demand for a claim before the insurance. A handful of owners apply for this type of insurance, and it is rarely used.
Repair-related diminished value:
You can apply for a repair-related diminished value claim if your mechanic repairs the vehicle with poor quality parts. For example, if you own a luxury car like Tesla, Mercedes, or Ferrari, you would like to incorporate OEM parts or Original Equipment Manufacturer’s parts to ensure that poor repairs or low-quality parts don’t affect your resale value.
By now, you must be clear about what diminished value is, so let’s get into the most interesting part of the blog.
When should you file a diminished value claim?
Undoubtedly, you must file a diminished value claim if you have been in a car accident. On the other hand, it is not a smart move for all car owners. Here we will mention some important factors that can help if you are thinking of applying for a diminished value claim after a recent car accident.
Car’s Real Value-Before Accident: Well, if it has been a long time since you have purchased the car, it is not worth it to file a diminished value claim. Older cars lose mileage and other crucial factors; hence it is not a great idea to invest in diminished value claims as you cannot get better returns either.
Who Was the Culprit of the Accident: No automobile insurance company will provide a diminished value claim to the policyholder who is himself responsible for the accident. So, if you are the reason behind the accident, you might not receive a diminished value claim, but your insurance company will also have to pay for the damage caused to others from your claim.
State Laws: Every state in the US has different laws; hence you can consult your lawyer or check each state’s regional website or research somewhere on the internet to find out the state laws.
Check Uninsured Motorist Coverage: Well, if another driver is responsible for the accident and they don’t have any car insurance, you can recheck your policy to find out whether it covers uninsured motorist coverage.
How to apply for a diminished value claim?
If you are thinking about applying for a diminished value claim after an accident, you will have to act fast and ensure that it is completed quickly. You might be dealing with a lot of stress from repairs, but it is also important to gather documents and submit them to your insurance company. Moreover, being late while filing diminished value claims can also further reduce the worth of your car. So, keep in mind if you want to save the worth of your vehicle, apply DV claim fast.
Determine who was at fault:
The first and foremost thing your insurance company will do once you have filed a DV report is find out who was at fault for the accident. You have to collect every record, proving that you were not responsible for the accident. Your insurance company might also ask for police reports and other legal information to prove that you are not responsible for the accident.
So, it is paramount to call the police when you are in an accident as they can reach out to people at the accident and file a report accordingly.
Laws define everything:
As mentioned above, you will have to research state laws to find out what your rights are. You can research that on the internet or visit your division insurance department and check for your rights and state laws.
Check the other driver’s insurance rules:
If someone else is responsible for the serious collision, you can ask your insurance company to discuss it with the other driver’s insurance provider. They will let you know how they deal with such claims, and your policy must have uninsured motorist coverage before applying for a DV claim.
Gather all the necessary documents:
You can Google diminished value appraisal near me as they can help you collect all the necessary documents and find the worth of your vehicle before and after an accident.
Evaluating the Diminished Value:
You will have to either hire a professional diminished value appraiser, or you can do it by yourself by using the diminished value formula.
Here is the step-by-step procedure for calculating the diminished value of your vehicle.
Finding the worth of your vehicle:
The first and foremost thing you have to consider while calculating diminished value claims is finding the value of your vehicle. To do so, you can use the official website of Kelly Blue Book or NADA to check the value of your car.
Applying 10% cap to the market value of your vehicle:
In the next step, you will have to apply a 10% cap to the market value, which is generally the vehicle’s loss of value or worth.
Applying damage multiplier:
Depending on the damage to your bike, your insurance company will apply a damage multiplier to the loss of value received after a 10% cap deduction.
Let us calculate one DV claim for a better understanding,
If you find the car’s value as 10,000 USD in NADA and by reducing the 10% cap, we arrive at 1000 USD. Your car has experienced moderate damage, which means 0.50 x 1000 USD= 500 USD is what you receive from the insurance company.
Some insurance companies also use mileage multipliers to find the diminished value claim.
File the claim:
At last, you will have to file a claim by following your insurance company’s rules and be responsive to all their queries. You can also apply for compensation for your loss.
Timing of remuneration:
In most cases, diminished value claims take a long time to receive due to tedious documentation. There is a lot for insurance companies to consider; they need time to evaluate every detail before arriving at a fair value. At the same time, they also have to pay out the repairs associated with your vehicle. Therefore, you don’t have to rush or pressurize your insurance company for a claim.
Diminished Value Appraisal Near Me – Hiring a legal diminished value appraiser:
Ultimately, if you find it difficult to come up with a diminished fair value for your car, a certified diminished value appraiser is the best option available in your hand.
You have to just type on Google, “Diminished value appraiser near me,” and you will be surprised to see so many of them. Out of all the options, you will have to go with the one who has the right experience and the one who is certified for the job. You have to hire the best because your insurance company will do the same. Hence you need someone who can efficiently win the case.
Are you looking for a Diminished Value Appraisal Near Me?
Benchmark Auto Appraisers LLC is New York’s leading diminished value appraiser. They have the right experience and certificates, and you need them at your back when you have to deal with insurance companies in New York. Give a missed call at 1-877-888-6113right now to book your free consultation with experts.
Daniel “Dan” Jendrowski
Certified Public Auto Appraiser Diminish Value Experts B.C.A.A. & I.A.C.P.
For FREE Consultation with an expert on Diminished Value Appraisal services, call
