Diminished value

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Diminished value Diminished Value: Diminished Value is the loss in a vehicle's value as a result of having been damaged. Depending upon the severity of sustained damages and the quality and thoroughness of the repair, a portion of its original value is restored; the extent of which must be determined by a recognized Diminished Value Expert. The remaining difference between the vehicle’s original pre-loss value and the restored value is considered the loss related Diminished Value or commonly referred to as“DV”.

The true measure of a damaged vehicle's inherent loss in value can be measured as the difference in the value of the property before the loss to that after the loss, prior to or after repair.

Diminution in Value is real and continues to exist simply because, for the most part, no reasonable and prudent buyer is willing to pay the same price for a vehicle with a history of damages as they would for one never having been damaged. Many offer discounts for scratches and dents on appliances, electronics and dented cans of beans; why then would the value of a once damaged motor vehicle not be negatively affected? [1]

Most auto insurance companies will not initially offer to pay for the diminished value. While in each state insurance companies address diminished value differently, depending on the details of the accident, you may be entitled to the diminished value of your vehicle today even if your car accident happened up to many years ago! [2]

diminished value appraisal[edit]

A diminished value appraisal evaluates the difference in value of a motor vehicle after a collision repair. Reports are usually compiled by an auto appraisal company. This report is used when filing or disputing a diminished value claim with an insurance company.

Some reports include an assessment of the damage done to a motor vehicle, the quality of repairs, the market value of the vehicle before and after the accident.[citation needed] There are no set rules for measuring diminished value, and since every vehicle loses value differently a one size fits all formula would be fundamentally inaccurate.

Regional[edit]

Recognition of concept of diminished value varies from country to country[citation needed]

United States[edit]

In some states insurance companies acknowledge diminished value and provide this coverage direct to their consumers.[citation needed]

Canada[edit]

The ability to recover damages for accelerated depreciation varies from Province to Province.[citation needed]

In British Columbia,law recognizes this loss as a recoverable damage and quantify the claim based on the diminished value at the time the collision occurs.[3]

The Rules addressing the admissibility of depreciation reports in court vary by jurisdiction.[citation needed] For example, in British Columbia, Canada, the BC Supreme Court requires such reports to comply with Rule 11.

See also[edit]

References[edit]

  1. ^ AutoDamageExperts.com
  2. ^ AutoDamageClaim.com
  3. ^ Rule 11-2 BC Supreme Court

External links[edit]