Recover the Lost Market Value of Your Vehicle After an Accident

Transcription

1 u DIMINISHED VALUE CLAIMS [ebook] Recover the Lost Market Value of Your Vehicle After an Accident Table of Contents Overview of Diminished Value What the Insurance Companies Aren t Telling You Normal Depreciation vs. Increased Depreciation Due to Diminished Value Recovering a Diminished Value Loss Through a Diminished Value Claim Why You Should Pursue a Diminished Value Claim You Have Suffered a Loss and Deserve Compensation After Market Parts Can Impact Your Vehicle s Value Recovering on a Diminished Value Claim Loss of Use Do You Have a Diminished Value Claim? Special Cases Volkswagen/Audi and Takata Air Bags Diminished Value Claims How We Can Help with Your Diminished Value Claim Our Process is Quick and Easy Get Started Today About Our Firm 0

2 DIMINISHED VALUE CLAIMS Recover the Lost Market Value of Your Vehicle After an Accident Table of Contents Overview of Diminished Value 2 What the Insurance Companies Aren t Telling You 2 Normal Depreciation vs. Increased Depreciation Due to Diminished Value 3 Recovering a Diminished Value Loss Through a Diminished Value Claim 4 Why You Should Pursue a Diminished Value Claim 5 You Have Suffered a Loss and Deserve Compensation 5 After Market Parts Can Impact Your Vehicle s Value 6 Recovering on a Diminished Value Claim 8 Do You Have a Diminished Value Claim? 8 Special Cases Volkswagen/Audi and Takata Air Bags Diminished Value Claims 10 How We Can Help with Your Diminished Value Claim 11 Our Process is Quick and Easy 11 Get Started Today 12 About Our Firm

3 Overview of Diminished Value WHAT THE INSURANCE COMPANIES AREN T TELLING YOU Car accidents happen nearly every minute of every day. According to the U.S. Department of Transportation, National Highway Traffic Safety Administration, in 2010 alone, 18.5 million vehicles were damaged in crashes that only involved property damages. These collisions resulted in property damages in excess of $76 billion. If you have ever been involved in a motor vehicle collision you probably learned that the insurance company will do whatever it can to limit the amount of money that it has to pay out to policy holders. What you may not be aware of, however, is that in addition to covering the costs to repair your vehicle, insurance companies have an obligation to reimburse you for the diminished value loss on your damaged vehicle and loss of use while your vehicle is being repaired if the other guy s insurance company does not provide you a rental car. Diminished Value is one of the Insurance Industry s Biggest Kept Secrets If you are not familiar with the concept of diminished value, you are not alone since most people have never heard of this concept because it is one of the best kept secrets in the insurance industry. Insurance companies do not advertise or educate consumers about diminished value or loss of use so most people are in the dark when it comes to their right to pursue diminished value claims. Diminished Value = Loss in Market Value of Your Vehicle After an Accident Put simply, diminished value is the loss in market value of your vehicle after it has been involved in an accident. Even if your car is expertly repaired, it will likely lose resale value because most buyers will pay less for a car once they discover that it was involved in an accident. Because your car is worth less than what it was worth before the accident, you may have the right to recover the loss in value by pursuing a diminished value claim. 2

4 Overview of Diminished Value NORMAL DEPRECIATION vs. INCREASED DEPRECIATION DUE TO DIMINISHED VALUE All Cars Depreciate in Value All cars lose value the minute you drive them off of the lot. Whether the vehicle is new or used, its value will quickly depreciate over time. New cars are estimated to lose about 20 percent of their value in the first year alone and will continue to depreciate at the rate of about percent per year. These figures are just estimates and the exact depreciation rate of your car will depend upon many factors, including the make and model of your vehicle as well as how many miles you travel each year. If Your Car Has an Accident History, its Depreciation Rate Will be Higher One factor that will have a tremendous impact upon your car s depreciation rate is its accident history. If your car has been involved in a collision, its resale value will be much less than a car that is accident free because the majority of consumers do not want to purchase a car that has been damaged in an accident. Even if your car is perfectly repaired, its accident history creates a stigma which may lower its value by thousands of dollars compared to a comparable car that is accident free. For example, let s examine the depreciation rates of two cars with the same make, year and model one with an accident history and the other without. Even if the cars have the same mileage and options, the vehicle that has been involved in a collision and repaired will have a higher depreciation rate than the accident-free vehicle. 3

5 Overview of Diminished Value RECOVERING A LOSS IN VALUE THROUGH A DIMINISHED VALUE CLAIM If your car has been damaged in a collision it is likely to suffer a substantial loss in resale value. Fortunately, when a motor vehicle accident occurs in the State of Florida due to the fault of another driver, you are permitted to pursue a claim for diminished value against the at-fault driver s insurance company. The diminished value recovery process enables vehicle owners to be made whole again by recovering compensation for the car s loss in value after an accident. Calculating Diminished Value Losses Insurance Industry Formulas are Unfair In order to pursue a diminished value claim, you must demonstrate that your car has suffered a loss in market value. The automobile insurance industry is notorious for trying to dismiss diminished value claims, so it is important to take the appropriate steps to show that your vehicle s resale value has decreased due to the accident, despite undergoing quality repairs. Even if the insurance company does not reject your claim outright, it will probably utilize a standard formula to calculate your damages. The insurance company s formula is unfair because it does not consider all of the elements relevant to your claim. The formula is designed to minimize the amount of money the company has to pay claimants for their car s loss in value. The insurance company benefits from using this formula, not you, the vehicle owner. If you would like help filing your claim, please visit and use coupon code DV10 when you speak to us for 10% OFF the regular attorney fees. 4

6 An Accurate DV Calculation Requires Individual Review and Analysis In order to accurately calculate diminished value (DV) damages, your claim needs to undergo an individual review and analysis. The legal professionals at Coffey Trial Law Diminished Value know what it takes to properly calculate a diminished value loss. We utilize a cutting-edge software valuation process that evaluates all of the factors relevant to your claim, including the type and severity of damages your car has sustained. Often we hire expert witnesses who are independent appraisers with experience in motor vehicle collision analysis to assist in the valuation process. If you would like help filing your claim, please visit and use coupon code DV10 when you speak to us for 10% OFF the regular attorney fees. Why You Should Pursue a Diminished Value Claim YOU HAVE SUFFERED A LOSS AND DESERVE COMPENSATION Diminished Value is a Real Loss When a vehicle is involved in a collision, the first action most car owners take is contacting the insurance company to arrange for repairs. While reimbursement for damages and repairs are essential, in most cases, reimbursement alone fails to compensate the vehicle owner for his or her true losses. Even if the car is completely repaired, the vehicle owner will suffer an additional loss because the car is worth less than before the accident. This additional loss, known as diminished value, is very real and can cost a car owner thousands of dollars in resale value down the road. 5

7 Cars Involved in Accidents Sell for Substantially Less than Accident-Free Cars Assume a buyer is trying to decide between two vehicles with the same make, year, model and mileage amounts. When the buyer runs a CarFax report, he learns that Vehicle A has been in an accident while Vehicle B has not. While both cars would have an identical resale value of $52,000 if they were accidentfree, Vehicle A s resale value is only $41,000 because its market value has dropped $11,000 as a result of the accident. This $11,000 reduction in value represents the car owner s diminished value loss. Car Owners Can Recover Diminished Value + Loss of Use Buyers trying to determine if a used car is a good deal often use online services such as CarFax or Edmunds to discover whether the car has been in an accident. When a buyer learns that the car has an accident history, he or she will want to pay a substantially lower purchase price. This reduction in resale value is the owner s diminished value loss. In Florida, the car owner has the right to request compensation for both diminished value as well as the loss of use of his or her vehicle which is the fair market value of a rental car renting your year, make and model car for the number of days that you could not use your car because it was being repaired. For instance, Tesla Model S owner lost the use of his car for two weeks due to the repairs and was entitled to $399 plus tax per day because that is what it costs to rent a Tesla Model S. 6

8 AFTERMARKET PARTS CAN IMPACT YOUR VEHICLE S VALUE Insurance Companies Save Big $$ Using Aftermarket Parts When your car has been involved in a collision, the insurance company will do everything possible to save money on your car s repairs. In most situations, the insurance company will tell the body shop to use aftermarket parts when repairing your vehicle. Aftermarket parts are copy parts. While companies claim they are exactly the same as original equipment manufacturer (OEM) car parts, the truth is they are not. They rarely fit exactly right and the sheet metal is never exactly the same as the original. If a body shop is required to use aftermarket parts to repair your vehicle these parts can diminish the value of your vehicle. Aftermarket parts are often inferior to OEM parts, which can result in your vehicle losing thousands of dollars in market value. Aftermarket Parts Contribute to Diminished Value When your car is damaged in a collision, the insurance company has a responsibility to make you whole again. Using aftermarket parts rather than OEM parts to fix your car is not going to make you whole. While your vehicle may look the same, the reality is that these parts are going to reduce the resale value of your vehicle. Your Trade-In Value May Be Substantially Less Due to Aftermarket Parts Let s assume that your 2014 Cadillac Escalade is rear-ended by a careless driver. When you take it in for repairs the at-fault driver s insurance company may insist that the body shop use aftermarket parts, rather than genuine Cadillac parts (OEM). These aftermarket parts are likely to drive down the value of your vehicle if you decide to trade it in or sell it down the road. Our firm can help you recoup these losses through a diminished value claim. Our diminished value process is simple and easy and we can get started once you complete our online diminished value intake form. If you would like help filing your claim, please visit and use coupon code DV10 when you speak to us for 10% OFF the regular attorney fees. 7

9 Recovering on a Diminished Value Claim DO YOU HAVE A DIMINISHED VALUE CLAIM? If you have recently been involved in a motor vehicle accident, you may be able to pursue a claim for diminished value. Below are several key factors that must be evaluated to determine whether you are eligible to file a diminished value claim. Key Criteria for Making a Diminished Value Claim Recent Vintage - In most cases, the vehicle damaged in the accident should be less than four years old. However, if the car is an expensive luxury vehicle or an exotic sports car such as such as a Mercedes Benz or Maserati, it may be worth pursuing a claim if the car is eight years old or less. No Prior Crashes - A vehicle with a history of prior damage is likely to disqualify you from making a successful diminished value claim. You Were Not at Fault for the Accident - In Florida, if you are completely to blame for the accident you will not be able to file a claim for diminished value. However, if you and 8

10 the other driver share responsibility, you may be able to recover a diminished value loss based upon the percentage that the other driver contributed to your vehicle s diminution in value. The best cases are those where the other driver is 100% at fault. At-Fault Party Must Have Insurance - When you are involved in a collision, the diminished value claim must be made with the at-fault driver s insurance carrier. If the driver does not have auto insurance, you will not be able to pursue a diminished value claim in Florida. If they do have insurance they need to have enough property damage coverage to repair your vehicle as well as pay you for diminished value and loss of use. You Must Own the Car - In Florida, only the owner of a vehicle can file a claim for diminished value. If you are leasing your car, you will not be able to pursue a diminished value claim. However, your leasing company may expect money from you for diminished value damages when your lease expires and our firm may be able to help. Claim Must be Submitted Within Four Years - The statute of limitations for making a diminished value claim in Florida is four years from the date of the accident. Even if you have sold your car you may still be able to make a claim so long as you take action within four years. Every case is different so you should discuss your situation with an experienced diminished value attorney who can outline all legal options that may be available to you. Contact our firm today for a free consultation. 9

11 Recovering on a Diminished Value Claim SPECIAL CASES Volkswagen and Audi Diminished Value Claims Volkswagen and Audi owners may face substantial diminished value losses when they try to sell or trade in their vehicles. Millions of Volkswagen and Audi vehicles with diesel engines are caught up in a scandal involving fraudulent reporting of emissions test results by these two auto manufacturers. If you own a diesel engine Audi or Volkswagen manufactured between 2009 and 2015, you may be able to pursue a diminution in value claim. The legal professionals at Coffey Trial Law Diminished Value will evaluate your situation to determine whether you have a claim when you contact us to schedule a free consultation. Takata Air Bag Diminished Value Claims Car owners with Takata air bags may be able to recover diminished value losses due to the faulty bag inflators installed in their vehicles. Air bags with these defective inflators have maimed and killed individuals involved in otherwise non-deadly vehicle crashes and collisions. The faulty air bag inflators can send shrapnel flying out of the airbags into drivers and front seat passengers. The air bag inflator recall involves millions of cars sold in the United States made by Honda, Nissan, Toyota, BMW, Chrysler, General Motors, Ford, Mazda, Subaru, and Mitsubishi. If you are concerned about your vehicle, contact our firm to schedule a free consultation. 10

12 How We Can Help With Your Diminished Value Claim OUR PROCESS IS QUICK AND EASY At Coffey Trial Law Diminished Value, we are committed to helping make consumers whole again. We understand the stress and frustration of an accident caused by another driver who damages your vehicle. Our goal is to make the diminished value recovery process as quick and easy as possible. We Take Care of Everything - When you hire our firm we will handle your case from start to finish, taking care of every detail. We understand that you are busy so let us put your mind to rest and our experience to work for you. We Do Not Require Any Upfront Fees or Costs - Since our firm handles all cases on a contingency fee basis, we will never ask you for money unless we secure a recovery for you. The terms and conditions of our legal representation are fully explained in our diminished value fee agreement that we will both sign when you hire our law firm. We Provide You with 24/7 Access to Your Case - At Coffey Trial Law Diminished Value, we believe that our clients should know what is happening with their case at all times. Our online case management system gives you the ability to log in and check the status of your claim 24/7/365. We Typically Receive Settlements Within Days - In most situations, we are able to settle a claim within 30 to 60 days of filing a demand letter with the insurance carrier. Once your case is settled we can transfer your money directly to your account or you can pick up your check in our offices at your convenience. If you would like help filing your claim, please visit and use coupon code DV10 when you speak to us for 10% OFF the regular attorney fees. 11

13 How We Can Help With Your Diminished Value Claim GET STARTED TODAY If your vehicle has been damaged in an accident, the best way to start the recovery process is to complete our online intake form and provide us with photos of your car s damages along with a final repair estimate. Once we hear from you, we will evaluate your case to determine if you qualify for our diminished value recovery process. Our Easy Three-Step Process 1. Document and Support Your Claim We begin the diminished value recovery process by documenting and supporting your car s loss in market value. Even if your car has been expertly repaired, it is worth less than its value prior to the accident. Our valuation process takes into consideration all of the factors that may impact your vehicle s resale value, such as severity and type of damages sustained. An independent appraiser with expert knowledge of collision damage analysis and car market values may be retained to assist in preparing your diminished value report. 2. We will determine how much insurance the other guy has and get a copy of the police report for the accident. 3. File a Request with the At-Fault Party s Insurance Company Once we determine the amount of your diminished value loss, we will send a formal demand letter to the at-fault party s insurance carrier for payment. This letter will include detailed information and documents proving that your car has lost market value due to the accident. 4. Settling Your Claim with the Insurance Carrier When the insurance carrier receives your diminished value demand, they may settle your claim, reject it, or make a counter-offer. In most cases, our attorneys are able to negotiate a settlement with the insurance carrier within days of the request, if not sooner. If a fair settlement cannot be reached, we are prepared to take the case to court or settle it through mediation when advisable and appropriate. Contact Us Today Recover the lost value on your car following an accident. Contact us today at

14 About Our Firm Sam Coffey, Esq. is a trial lawyer devoted to representing individuals and their families who have been injured by the carelessness of others. He focuses his practice on handling a small number of serious injury cases involving traumatic brain injury (TBI), spinal cord injury (SCI), wrongful death or serious personal injury. These cases usually involve a harmful or defective product, a dangerous drug, a drunk driver or serious car accident, an airplane crash, or another type of dangerous condition. Sam Coffey also works extensively in areas relating to diminished value claims, consumer fraud and business disputes. Sam Coffey prides himself on professionalism and pro bono work. He is a member of the American Board of Trial Advocates (ABOTA), a national organization of plaintiff and defense trial lawyers and judges with considerable trial experience who have been peer-selected for inclusion in this organization based upon professionalism standards. Awards and Peer Recognition The Broward County Bar Association honored Sam Coffey with the Joseph C. Carter Professionalism Award in 2013, an award annually presented to one lawyer who has exemplified the highest ideals of professionalism in law practice and in life. Sam Coffey has lectured nationally on the issue of traumatic brain injury and spinal cord injury to lawyers, industry leaders, insurance company executives, and judges. Sam Coffey is AV-rated by Martindale-Hubbell and is included in the Bar Register of Preeminent Lawyers. He has been recognized by his peers for his inclusion in Super Lawyer and is AV Rated by Martindale Hubbell. This honor is bestowed upon the top 5% of attorneys practicing law in the local community. Sam Coffey has considerable jury trial experience. Bar Admissions The Florida Bar, 1996 U.S. District Court, Southern District of Florida, 1996 U.S. District Court, Middle District of Florida, 2005 Education University of Miami, 1995, J.D. University of New Haven, 1991, B.A. 13