part 4 diminished value
DT
7/24/22 2:02 p.m.The key to ensuring minimal loss of value to any vehicle is demanding all repairs be completed per the ORIGINAL factory specifications. What do I mean by ORIGINAL? I mean the original manufacturer of your vehicle installed full panels and secured them with proper welds/fasteners and finished them with the correct caulking materials, primers, base coats and finish coats. Additionally, the original manufacturer applied and installed all the OEM bolt on parts. The original manufacturer also constructed the shell of the vehicle in jigs ensuring proper tolerances. Knowing this you should select a repair facility capable of restoring your vehicle to the original pre-loss factory specifications and tolerances. Note proper specs should not include the sectioning of any structural body panels. My point is if you select a repair facility that has a reputation for fit and finish, you should be satisfied with the repairs to your vehicle. If you select a body shop that cuts corners (I.E. sections panels vs full replacement of panels, doesn't color match nor follow paint manufacturers refinish protocols, doesn't utilize OEM replacement parts when they are available, etc) chances are you and future buyers will not be happy with the repairs. All that said - how is diminished value determined? As a former Auto Claim Estimater and Claim Manager, most of my diminished valued settlements were between 10-25% of the repair estimate. The nicer and more expensive the vehicle the higher %age of the estimate. One note of caution; no consideration of diminished value was ever considered due to poor quality repairs. If the repair estimate was thorough and complete and the repairs completed per that estimate and per factory original specifications and tolerances; your vehicle should be restored to pre-loss condition. If the body shop cut corners and it shows, your vehicle definitely suffered some diminished value; but unnecessarily. It wasn't due to the person who damaged your vehicle. Rather it was due to your selection of body shop and the shop's poor quality repairs. So be sure to choose a repair facility wisely; selecting a repair facility with both expertise and reputation. Then be ready to discuss diminished value upon completion of the repairs.
Matthewgreen82 None
10/1/22 11:20 a.m.I have 2 questions:
- The insuree has the right to perform the repairs themselves. How does this affect the DV claim? Is an auto body shop required to perform the repairs in order to continue with a DV claim? Can a post repair apprasil be performed without bias if the insuree does the repairs themselves?
- It's common for parts to be, not only hard to find, but flat out not reproduced and not on the market. NOS parts have all been sold off. Though maybe exist in a scrap yard somewhere in the deep woods of South Carolina, like a needle in a hay stack, but who knows for sure. My point is, what happens in a DV claim if parts are irreplaceable? And who declares that a part is irreplaceable.. that all avenues have been exhausted? Where does an appraisal and end verdict of a DV claim land in this scenario?
Thx in advance,
MG
johnceena88 New Reader
10/3/22 2:58 a.m.Insurance adjuster here. Keep in mind that most states don’t allow for first party diminution in value claims. You can only claim with the other party’s insurance and if you’re not primarily at fault. (There’s an exception for uninsured motorist claims) It’s also something you can negotiate in most cases and there are companies out there that specialize in total loss and diminution claims. You can also go back and ask for it on old claims! Statute of limitations is 3 years on average.
Matthewgreen82 New Reader
10/3/22 2:37 p.m.In reply to DT :
DT, what happens if neither OEM, NOS or Reproduction parts can be found? Nor in good condition used parts. For example, a classic car where there were only 5,000 built, and 90% of them have met the crusher, 10% are restored and not parts cars. A rear quarter panel extension for this Classic car is so smashed that it can not be repaired, and is not available anywhere. What happens? The car is left to live its remaining life span without this part. Crucially diminishing it's value. What is the case here?