Vehicle Diminished Value

DIMINISHED VALUE THE BIGGEST SECRET IN THE AUTO INSURANCE INDUSTRY Diminished value (DV) is the automatic loss in value from a vehicle collision. Almost every vehicle that has been in a wreck will have some form of inherent diminished value. RELATIVE RISK OF AN ACCIDENT More than 42% of repaired cars are unsafe to be on the road Driver's speed in a 35 mph zone 3 5% 40 30 50 30% 20 60 -70 25% MPH 20% 80 Driver's blood alcohol level 15% 0.1 0.075 0.125 10% More than 70% of repaired cars lose market value 0.05 0.15 0.025 0.175 AVERAGE DIMINISHED VALUE CLAIMS Relative Risk $20,565.42 0.2 Blood Alcohol Concentration (g/DI) Preloss Value of Automobile XDocument EVERYTHING! $10,109.74 I $6,486.54 Amount of Damage Invoiced Handle all correspondence in writing Average DV Calculated WHAT MAKES US NOT WANT TO PURCHASE A VEHICLE THAT HAS BEEN IN AN ACCIDENT? X Do NOT debate the insurance company File complaints if you feel you have been wrongly denied X Involve your local media Don't give up! Persistence pays off. 55% 81% 32.9% Average Percentage of Lost Value of consumers of consumers would not would not purchase a vehicle that had been in an accident purchase a vehicle that had been in an accident unless AN EXAMPLE | Your vehicle is worth $30,000 they were given a discount One day, you're hit by another car, causing $5,000 in damage. Your insurance company pays for the repairs. Although your vehicle looks as good as it did before the accident, it's now much less desirable having been in a collision, should you decide to sell it now or down the road. 19% б0% Many times a frame or structurally damaged vehicle cannot be sold as a "certified used vehicle." This will impact the vehicle's value by as much as 40%. Your insurance company will be quick to write you a check for the repairs, but you're entitled to diminished value. of consumers would not purchase a vehicle that had been in an accident with over $2000 damage, with over $2000 damage, without frame damage of consumers would not purchase a vehicle that had been in an accident If you list your vehicle in the newspaper for $30,000, the first thing a buyer will ask is "Has the vehicle been in an accident?" Once the buyer discovers the accident, he/she would no longer be willing to pay $30,000, but instead might offer $22,000. with frame damage In this case, the diminished value would be $8,000. Even if you've already settled with the insurance company on the body damage, you can still file a separate diminished value claim if the repairs were done recently. Your claim for diminished value can be paid by your own insurance company or the other party's company. Sources: Wikipedia, autoloss.com