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Understanding Diminished Value
When a vehicle is involved in an accident and subsequently repaired, it often experiences a diminished value, meaning it's worth less than an identical vehicle that has never been damaged. This happens even if repairs are perfectly done, as the accident history itself impacts its perceived value.
There are two main types of diminished value:
- Inherent Diminished Value: This is the immediate drop in value a car suffers simply because it was in an accident, even if repairs are flawless. Buyers typically view an accident-free vehicle as superior.
- Repair-Related Diminished Value: This loss occurs due to substandard or faulty repairs. Insurance companies usually don't cover this, as the repair quality is outside their control.
Do You Qualify for a Diminished Value Claim?
Determining if you qualify for a diminished value claim isn't always straightforward. Generally, newer vehicles with more severe damage are more likely to have experienced significant diminished value. Conversely, older vehicles, those in poor condition before the accident, or cars with a history of prior accidents may see less, or no, diminished value. While previous accidents or minor damage don't automatically disqualify you, they can reduce the amount you might recover.
Dempsey Appraisal Service reviews each claim individually. Feel free to contact us for a free review to see if your vehicle qualifies for a loss of value claim.
How to Claim Diminished Value
Collecting diminished value from an insurance company can be a challenging, frustrating, and lengthy process. We believe this is by design. We highly recommend using a professional diminished value claim specialist to navigate this complex process. While diminished value is legally recognized, the insurance industry often creates obstacles to avoid paying legitimate claims. For years, they've denied these payouts and have even involved state Departments of Insurance to prevent payments to policyholders. Even with these challenges, our assistance can still help you recover the full diminished value of your repaired vehicle.
What is the 17c Formula?
The 17c formula is essentially an arbitrary calculation used by insurers. It primarily relies on just one piece of market data—your vehicle's pre-loss value. The rest of the formula is designed to reduce the diminished value the insurer owes, plain and simple.
