Diminished value or diminution in value is defined as that portion of a vehicle’s pre-loss value that cannot be restored through the repair process.
There are three levels of diminished value:
Immediate diminished value is the difference in resale value of a vehicle immediately before an accident and prior to repair. When resolving property damage claims inherent diminished value and repair related diminished values are normally used.
Inherent diminished value is defined as the amount by which the resale value of a repaired vehicle has been reduced solely as a result of the vehicle now having significant damage history. This history decreases the overall market value of the vehicle.
Repair related diminished value is the loss of the vehicles value as a result of improper collision repair. This is an additional claim to the claim for inherent diminished value.
– A diminished value appraisal report measures a damaged vehicle’s inherent loss in value. The diminished value can be measured as the difference in the value of the vehicle before the loss to that after the loss, prior to or after repair. In most cases even if the repair was done expertly, the value of the automobile will still be considerably less after a loss.
When a consumer finds that a vehicle has been in an accident, most will never pay the same price for a repaired vehicle as compared to one with no loss history.
– A diminished value appraisal report is used when filing or disputing a diminished value claim against another party and/or an insurance company.
Elite Euro Cars performs post repair inspections of vehicles that have sustained damage and already undergone corrective repairs. Undoubtedly, the most valuable of all the services we provide is the post repair inspection. This inspection ensures that the repairs that needed to be done were in fact completed, and that those that were done, were done properly.
We have people that want to make a quick buck and they don’t have the best interest of the consumer in mind,” says Kathleen Hamilton. According to the Bureau, an astounding 40 percent of body-shop work is fraudulent.
Improperly diagnosed and under-repaired vehicles may prevent your vehicle from reacting as originally engineered and intended by the manufacturer. These failures may cause problems with deployment the safety restraint systems and be cause for significant injuries.