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TYPES OF DIMINISHED VALUE
Diminished Value can be defined as the unavoidable loss of financial worth of a vehicle due to damage. There are three basic types of diminished value, and the extent of each determines the overall depreciation.
Inherent D.V. can best be described as the automatic and unavoidable loss of market value simply due to the fact that the vehicle has been involved in an accident. Given the disclosure laws, in many cases it is mandatory that previous damage be disclosed, (made known), to a prospective buyer. Think of it this way: You wouldn't be willing to pay as much for a vehicle that was damaged as you would for one that had never been repaired, would you? The difference in the amount you'd be willing to pay for an undamaged automobile versus the price you'd be willing to pay for one that has been repaired would be considered "Inherent Diminished Value".
Repair Related D.V. can best be described as the loss of market value due to the fact that the repair facility performed improper and incomplete repairs to your vehicle during the repair process. These are items that are listed on the Repair Order of record and are either not completed and/or completed improperly. This type of diminished value will not only decrease the value of your automobile but in many cases effect the safety and drive-ability of your vehicle.
Insurance Related D.V. can best be described as the loss of value due to the insurers failure
to indemnify the consumer for items and procedures owed under the contract of insurance. In many cases it is to you
advantage that you review and understand your policy provisions before you begin the
repair process to your vehicle. Also you should be aware of the use of
terms such as "Quality Replacement Parts", "Quality Recycled Parts", "Industry
Standards" and you should ask questions if you do not understand the "Estimate Of Record".
WCCSC Diminished Value Assessment does not address Insurance
Related Diminished Value because in most cases the insurer elects to
indemnify you for the cost of the repairs and not to take part in the repair process. You must also
understand that some insurance policies with your authorization allow the insurers to
actually take control of your vehicle and complete the repairs and an insurance partner
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Email: rocco@roccos1.com |
"Request A Post Repair Inspection & A Diminished Value Assessment "