Note: this article is intended for 3rd party claims only (against other party). On 1st party claims, the policy asks for an independent appraiser, usually somebody that is a licensed professional not a car dealer.
As long as the conditions below are met, a car dealer would be an acceptable appraiser for diminished value appraisals:
- His valuation is NOT contingent on purchasing the vehicle
- The dealer (an individual) states his qualifications and experience
- The appraisal report is USPAP compliant
- The dealer is willing to talk to the insurance company and explain his findings
- The dealer will testify in court as an expert witness if need be
Dissatvantages of getting a dealer appraisal for diminished value;
- No claim guidance
- No demand letter
- Less Credibility than an Independent Appraiser
- Less Accurate than an Independent Appraiser
- You get what you pay for!