What is a Diminished Value Appraisal?
When a car accident occurs, insurance companies will often pay to repair the immediate damages. However, diminished value comes into play when trying to resell a car that has been in a collision! If you try to sell your car after a crash, you’ll probably discover that it’s not worth as much as it was before.
Once your vehicle has been wrecked and repaired, it has lost value! This loss in value is called Diminished Value. It is the difference between what a car is worth before and after an accident.
Value is determined by what a buyer is willing to pay. In the past it was difficult for a buyer to know if a vehicle was in an accident, but this is changing due to Carfax® vehicle history reports becoming popular.
If given the choice between two identical used cars, except for the fact that one had significant repairs, most buyers would choose the car that was accident-free. In most cases both buyer and seller will negotiate a lower cost because the buyer perceives the car to be less valuable. Even if the repairs were top notch, you will likely receive less money for your vehicle whether you sell it the day after repairs or years later.
The Secret Insurance Companies Don’t Want You to Know
You are not alone if you’re not familiar with the concept of diminished value as most people have never heard of this or don’t think to pursue it. If you’ve ever been in a motor vehicle accident you probably found that the insurance company will do whatever it can to limit the amount that it has to pay out. Insurance adjusters do not address the vehicles decrease in value until the claimant brings it up and if you do, they will provide all sorts of objections to pay the claim. If you don’t know the facts or have the appraisal necessary to pursue the loss, most adjusters will succeed in not paying what your claim is worth. Our site was designed to teach you more than what many adjusters know.
If you were not at fault for your vehicle’s damage, then you should be able to recover lost value from the party at fault or their insurance company. You are entitled to be made whole. If they only repair the car, then you are not made whole! In 2010 Louisiana Revised Statute §9:2800.17 was enacted that specifically addresses liability for the diminution in the value of a damaged vehicle. YOU MUST PROVE YOUR CLAIM!
The LADOTD Traffic Safety Office reports there were 38,594 accidents in Louisiana in 2017. Of those, 27,525 were for property damage only. Of those property damage claims, the vast majority only had their vehicle fixed. Only a very small percentage pursued claims for diminished value. The insurance companies have done an excellent job of keeping this a mystery.
Our detailed and professionally formatted DVM diminished value evaluation report uses Louisiana industry accepted methods to assess the decrease in value, and can be submitted to the at-fault party for payment. We provide diminished value appraisals in New Orleans , Baton Rouge and all over the State of Louisiana.
Watch this video to learn more: