Diminished Value or Diminution in Value is defined as that portion of a damaged vehicle’s Pre-Loss Value that cannot be restored through the repair process.
Repair to “Industry Sub-Standard-Cut Rate Repair” exists when repairers use, used salvaged parts, non-original imitation parts**, excessive body plastic repair material, limited materials with regard to coatings, caulking or sealers. In providing this minimum level of repair. The technicians were unsupervised and no specific quality control measures were used. This repairer is either inexperienced or is willing to risk their reputation on a cut-rate repair. They believe the average untrained consumer will not notice the visible flaws. An expert has concluded that major and minor flaws and/or defects remain. Clear evidence of the repair process exists, exposed welds, weld burns, missing paint on hidden or interior surfaces, bodywork that is easily visible to even the untrained consumer.
The repairers may have used parts from sources other than the original manufacturer, used Salvaged parts that were untested or history verified. Areas of the vehicle may have been repaired using an excessive plastic auto body filler material. This repair was completed WITHOUT consulting the manufacturer specifications or guidelines. An expert has concluded that serious flaws or defects remain from the collision. It has also been concluded that evidence of the repair process exists that subsequent buyers may find. An expert has determined that the paintwork has been restored but evidence indicates that it is NOT EQUAL to the undamaged portion of the vehicle. An excessive amount of contaminant exists in the paint in the form of dirt, dust or flaws. No effort was made to polish or buff the painted surface. The diminished value would be severe and include inherent loss, insurance induced DV from limiting repairs and/or, selecting or directing the body shop. The potential for fraud is great and negligence. The potential for re-repair is limited by the value of the vehicle. It may not be practicable to re-repair the vehicle and total loss considered.
This vehicle will not function, perform or wear in a manner relative to that of an undamaged vehicle of the same year, make and model. It is unpredictable as to what may happen in a 10-20 mile per hour crash. Most vehicles are not built or crash safety tested above 20 MPH with the intention of repairing them.
** Imitation parts: Have been determined by the courts to be inferior to OEM parts in many respects. Imitation parts void factory warranties on the imitation component itself and on all other related-connected components that fail due to the presence of the imitation part. Imitation parts have no effective recall system, should the manufacturer discover a design or material defect after installation. Imitation parts have been found NOT to be of like kind and quality in fit, finish, warranty and performance; as a result, using them may cause additional loss of value and additional potential safety hazards. Reconditioned or re-manufactured are also considered to be inferior unless sponsored by the OEM manufacturer.
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