Diminution of Value
Diminution in value is generally refered to as the reduction in the worth of an item caused by an action that harms said item.
When a vehicle is wrecked and fixed, regardless if the repairs are done right or not, the resale value is automatically reduced. This goes back to a fundamental human trait, people always go for the better item.
A vehicle that’s never been wrecked is inherently superior than a damaged counterpart, car buyers will always pick the “better” vehicle especially if the price is the same.
So, for a wrecked and fixed vehicle owner, the only way to sell his property is to reduce the price.
The car’s reduction in resale price is called Diminished Value or Diminution of Value.
Now, the question is, how do you get that money?
According to tort law, the tortfeasor is bound to bring back whole the injured party and as such is required to pay for all direct and indirect losses. Diminution of Value is an indirect loss. If the tortfeasor is insured, his carrier will take the burden of the loss.
As you all probably know, insurance companies are for profit, so, most of them will either ignore Diminution of Value or pay you based on the erroneous and inaccurate 17C FORMULA.
So, how can you be brought back whole?
To be brought back whole is to be returned to a state immediately preceding the loss, so, if your net worth before the accident was $100,000 in cash and a $20,000 vehicle, you should be returned to this $120,000 amount.
If your loss in value on the vehicle is $2,000 and you don’t collect it, your net worth is now $118,000 and that’s not fair.
To be brought back whole you need to collect the $2,000 your vehicle actually lost.
Let’s look at this claim from a different angle for a minute… let’s say you just bought a 52 inch flat screen TV and placed it in your SUV. On the way home, you get rear ended at a stop sign, the screen is cracked and the TV is a total loss. The tortfeasor (person who hit you) is responsible to repair your vehicle and pay for the TV, common sense right? Okay… now to quantify the value of the TV you would simply provide a receipt showing the purchase price of the TV. Quantifying the value of this TV is simple enough in this case, but if that TV was an antique B/W from 1960, how would you quantify its value then? You get an appraisal.
The same logic goes for Diminution of Value, you need to get an appraisal that quantifies the amount you lost, sure you can print all the Kelly Blue Book papers you want, but unless you get an actual auto appraiser to inspect your vehicle and put in writing what the loss amount is, your demand is not credible and will be dismissed by the insurance company.
Insurance companies will also dismiss your claim if you hire an incompetent or an unreliable appraiser. Why Hire Diminished Value of Georgia?
The appraisal you receive from us is a demand instrument you can use to collect your Diminution-of-Value from the insurance company, it’s that simple!
To Get the process started, please fill out our Diminution of Value Questionnaire: