Diminished value is the loss in a damaged vehicle's market value
after repairs have been completed. It may be the best kept secret
many insurance companies don't want you to know about. Whether
you own or lease, you could lose hundreds or even thousands of
dollars at time of sale or trade in through diminished value.
Suppose your car was damaged in an accident. It was then repaired
and the repairs were absolutely perfect. This car has still lost
value since it is now perceived by any potential buyer as "damaged
goods." This type of loss of value is known as "Inherent
Diminished Value" and it applies regardless of the quality
of the repairs. There are two other types of diminished value as
well.
"Insurance Related Diminished Value" applies when an
insurance company did not allow for the needed repair procedures
in the claim or when they required substandard parts to be used
in the repair. As an example, a car was damaged on the right front
fender and the inner panels also suffered minor damage; the insurance
company specified replacing the fender with an imitation fender
and did not allow for any repair to the inner panels even though
they are visible when the hood is open. The imitation fender and
the uncompleted repairs will both diminish the value of this car.
"Repair related diminished value" applies
when a repair shop was paid to perform needed repairs but did not
do them correctly.
For example, if a repair shop was paid to repair and refinish a
door but the paint is mismatched or has visible sandpaper scratches,
this car has suffered repair related diminished value.
If your vehicle has been in an accident, you have lost money! This
loss is owed to you for up to five years after the accident, either
by your insurance company or the at fault party. And this loss
is owed to you even if repairs were completed correctly!
Florida law is clear in the event of a covered loss, any economic
loss is recoverable. To be fully indemnified (made whole), one
is entitled to recover any loss in monetary difference between
the value before the loss, to the value after repairs.
Diminished value has existed since before the horse and buggy days,
but has always been difficult to specify as an exact dollar amount.
A new system available through selected premier collision repair
shops is changing that. The WreckCheck (TM) system uses a state-of-the-art
computer program to provide a comprehensive evaluation of all three
types of diminished value in a detailed, printed report. This report,
by establishing a dollar value, is the first step in collecting
the amount of diminished value owed to you. Feel free to contact
us for additional information on this valued service.
