Diminished value


Diminished value

Diminished Value is the reduction in a vehicle's market value occurring after a vehicle is wrecked and repaired, otherwise called accelerated depreciation.[citation needed] A reasonable person will not pay the same price for a wrecked, then repaired vehicle, as they will for a vehicle with no prior accident history. Even if the repairs are proper, the vehicle will still lose value. To collect diminished value after a car accident, insurance companies usually ask for a diminished value report. These reports are usually generated after an unbiased third party appraiser inspects and appraises the vehicle and establishes the loss in value.

Some insurance companies use a formula called 17c to determine diminished value, this formula is inaccurate and generates values not consistent with current market data.[1][2][3]

Diminished value report

A diminished value report is a third party appraisal and inspection conducted to measure the reduction in value of a motor vehicle after an accident. These inspections are conducted after the vehicle has been repaired.[citation needed] Reports are usually created by an unbiased company for a minimal fee. This report is used when filing for a diminished value claim with an insurance company.

Most reports include an assessment of the damage done to a motor vehicle, the quality of repairs, the market value of the vehicle before and after the accident.[citation needed] There is no set rule for measuring diminished value.[1][4][2][5]

See also

Notes

  1. ^ a b "Georgia Office of Insurance and safety fire commissioner". http://www.gainsurance.org/ConsumerService/FAQ_Auto.aspx. 
  2. ^ a b "State Farm v. Mabry". http://www.asashop.org/autoinc/march2002/legis.htm. 
  3. ^ "17C Formula". http://17cformula.com/. 
  4. ^ "Appraisal Calculation". http://www.diminishedvalueofgeorgia.com/our-appraisal-method/. 
  5. ^ "Ohio Court Ruling Could Impact Auto Damage Claims". http://diminishedvalueclaims.blogspot.com/2010/04/ohio-court-ruling-could-impact-auto.html. 

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