Your Motor Vehicle's After-Impact Diminished Value
The Actual Cash Value Policy does not insure the property itself but the VALUE of the property. When the insurance company chooses to “Repair” the damaged insured property (as is their option within their contract of insurance) such an election DOES NOT relieve that insurance company of their contractual duty to restore the Pre-Loss VALUE of the motor vehicle.
To whatever extent such repair’s fail to restore that motor vehicles Pre-Loss VALUE, should be tendered to the policyholder in cash (the majority of them don't) yet failure to do so is nothing less than insurer fraud!
Items are sometimes repaired improperly or overlooked completely. Several of these typical repair related items could be: Poor quality repairs, improper welding, or flawed refinish operations.
“Diminished Value” is owed if a vehicle has not been brought back to it’s pre-accident function, appearance, safety, and value.
The Following Are Three Basic Types Of "Diminished Value"
- Inherent Diminished Value: This is the automatic and unavoidable loss of market value simply due to the fact than a motor vehicle has been involved in an accident. In most cases it’s mandatory (but rarely if ever done) that previous damage is made known to a prospective buyer.
- Insurance Related Diminished Value: This comes to pass due to oversights and/or omissions by the insurance company on their appraisal. And also, because of the use of “Imitation Replacement” parts.
- Repair Related Diminished Value: This is the amount which the motor vehicle was depreciated due to improper or incomplete repairs, poor quality repairs, or un-repaired items that were compensated for within the insurance appraisal.
Auto repair shops (even the most advanced) do not have access to the type of equipment and it’s impossible for them to afford such technology that a manufacturer can. And, that being the provable case, you’re not going to be returned your car in the absolutely perfect value it was when it came off the assembly line!
It’s a fact of life that should a potential buyer discover the motor vehicle one is about to buy has been in an accident that it’s going to be worth less money. Because of that almost every damaged motor vehicle will have some possible inherent “Diminished Value” which can evolve into an actual loss to the consumer. This loss is owed by the insurer, due to their alleged promise in which they’ve implied to their insured (within the confines of their insurance contact with them) that they would be made “Whole”.
PLUS THERE ARE OTHER “REPAIR PROBLEMS”. The following are 4 of the most potential of them that are bubbling and boiling - - just under the surface:
- Most consumers don’t know what kind of parts they’re getting. They incorrectly assume their motor vehicle will be restored to its pre-crash condition.
- The “Imitation Parts” don’t match the motor vehicle contours leaving an all too often impossible mess to correct.
- When it comes to fenders there are “Fit Problems”. Some require widening the holes or using shims. Many don’t match the contour of the car and require significant reworking.
- Replacement bumpers (more often than not) need to be re-drilled or widened leaving large gaps or uneven surfaces.
DISCLAIMER: The only purpose of this article “YOUR MOTOR-VEHICLE'S AFTER-IMPACT DIMINISHED VALUE” is to help people understand the motor vehicle accident claim process. Neither Dan Baldyga, Vince Ciulla nor About.com make any guarantee of any kind whatsoever, NOR do they purport to engage in rendering any professional or legal advice, substitute for a lawyer, a claims adjuster, or the like. Where such professional help is desired IT IS THE INDIVIDUAL’S RESPONSIBILITY to obtain such services!
Dan Baldyga’s third and latest book, AUTO ACCIDENT PERSONAL INJURY INSURANCE CLAIM (How To Evaluate And Settle Your Loss) can be found on the internet at http://www.caraccidentclaims.com or http://www.autoaccidentclaims.com. This book reveals “How To” successfully handle your motor vehicle accident claim so you won’t be taken advantage of. It also goes into detail regarding the revolutionary BASE (The Baldyga Auto Accident Settlement Evaluation Formula). THE BASE FORMULA explains how to determine the value of the “Pain and Suffering” you endured - - because of your personal injury.
Copyright (c) 2005 By Daniel G. Baldyga. All Rights Reserved
