Diminished Value

What is Diminished Value?

Simply put, Diminished Value (DV) is a loss of market value on property, because that property has a history of having damage. Even if that property is repaired properly, it will have lost market value.

 

For example:
Diminished Value

 

You go shopping for a car, and find two identical cars. One car doesn’t have any history of previous damage. The other car had major repairs done, after it was one of the unlucky parties in a collision. Which car would you buy?

 

Exactly. The car without a history of damage.

 

That choice makes cars without damage history more valuable on the market. Cars with a history of damage are worth less.

 

The difference in the value between the two cars is exactly what Diminished Value is. There are three basic types of Diminished Value: Inherit Diminished Value, Insurance Related Diminished Value, and Repair Related Diminished Value.

 

FAQ

If your car has a history of damage, it has lost value.

No, Insurance companies don’t always pay up the loss in Diminished Value to you. But they should.¬†We can help you determine how much value your car has lost, so you can claim this amount from the at fault’s party’s insurance (in some cases you can claim DV from your own insurance company too, like an uninsured motorist claim).

We will inspect your vehicle on our premises, and then conduct extensive market research to determine the most accurate amount of loss. Reports typically take two to three weeks to complete. For this report, and the inspection, we charge a flat fee.

We are an independent expert appraiser, with many years of experience in DVs, but also with Forensic Inspections, and Total Loss Appraisals.

If the accident was not your fault, and your vehicle doesn’t already have an extensive collision history, then you should definitely look into filing a claim. The severity, as well as the type of damage, and the age, and condition of your vehicle are relative to each claim.

If your vehicle’s value is decreased by less than $5,000-, you can often settle with the insurance company without legal help. For larger claims, we advise to retain legal counsel.