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.
This vehicle is poorly repaired, is below “Sub-standard and Cut-Rate.” This vehicle may be, “Poorly Repaired- Unsafe to Drive”. Repairers followed no factory recommended repair data.
For this repair, the insurance company specified imitation parts and the repairer agreed to use them without protest in the repair of the subject vehicle. These parts have been determined by experts and the courts to be inferior to OEM parts in many respects. Imitation parts WILL void factory warranties on the imitation component itself and on all other related components that attach or may fail due to 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.
Used Salvage Parts were installed that were below the visible grade of the existing vehicle. Their source and history were not determined. Basic repair material requirements were disregarded and are missing. Even a non-automotive expert can clearly tell that the vehicle was damaged and has been poorly repaired. An expert would conclude that numerous major and minor flaws remain. Clear evidence of the repair process exists. There is visible defective structural and body repairs, missing paint on multiple surfaces, and easily identifiable bodywork exists. This vehicle may have safely and mechanical issues the make it unsafe to drive and a risk to others on the highway.
The paintwork is visibly flawed and clearly has not been restored to factory specification or appearance. There are obvious differences in color match, texture, and/or material quality. There is no conclusive evidence that the paint will age and wear in a manner undetectable from that on undamaged parts of the vehicle. 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 body shop may have been directed to alter the repair method by the vehicle owner for a financial motive. A deductible may have been saved or other reason. There is great potential for fraud, negligence is typically present. The potential for re-repair is limited cost-wise 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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