Read these instructions fully before proceeding

Transcription

1 Diminished Value Claim Instructions Read these instructions fully before proceeding These instructions are provided as a general guide to aid you in the process of making a claim for the diminished value of your vehicle. Laws vary from state to state, so it is not possible to address every possible situation that may come up. However, we have attempted to provide you with the basic information needed to present your claim, be prepared for a response and negotiate a fair settlement. Keep in mind that there are no guarantees of a specific outcome. All claim settlements are the result of a negotiation. These instructions as well as our report are provided on an as is basis and in no way, can guarantee you a specific result. The party responsible for paying your claim may not negotiate in good faith. Often, insurance companies will make all kinds of excuses to not pay your claim. They may try to state that our report does not contain sufficient information or that they simply do not agree with the assessment. If this happens and you are unable to get them to negotiate a reasonable settlement, you may need to bring a law suit against the responsible party. Often this can be handled in small claims court; however, we do recommend that you consult with an attorney prior to filing a law suit to verify the correct court to file in, the correct party to file against and the correct amount to ask for in your suit. However, you should make every attempt to reach an agreeable settlement before court. Basic Steps in the Claim & Negotiating Process 1. Prepare a formal diminished value claim demand for payment letter (sample attached) 2. All correspondence between you and the responsible party should be in writing. Everything you send to the responsible party should be sent by certified mail/return receipt requested. That way you have proof that you sent it and will get back proof that they received it. Everything you send should also request that they only respond to you in writing. 3. Send your demand letter along with a copy of your DVASSESS Diminished Value Assessment Report to the party responsible for paying your claim. (By Certified mail/return receipt requested) 4. Be prepared to effectively negotiate your claim. The responsible party may initially respond in one of several ways.

2 They may make a reasonable offer that you accept, and your claim is settled. (This happens very rarely) Be prepared to negotiate. They may make an initial low-ball offer. If they do this, respond in writing, indicating that their offer is too low, but you are willing to be reasonable. Then make a counter offer, moving your amount downward in small increments. (Remember all correspondence should be in writing) They may want to hire their own appraiser to provide an opinion of your loss. (This is fine, but request that they send you a copy of their appraiser s report) That way you can read it and look for flaws that you can argue. They may try to deny your claim outright. (This does happen in some situations) If they deny your claim, be sure you get their denial in writing that includes a specific explanation for their denial. The respond in writing attempting to refute their reason for the denial. If you do not fully understand the denial, then you should reply asking for more details. If they simply say that you have not proven that a diminished value exists, then reply in writing telling them that if they do not agree with the assessment you have submitted, that they should obtain their own assessment and send you a copy. Then you can look for flaws you can use in your negotiating.

3 Date xx/xx/xxxx Adjusters Name Insurance Company Name Address City, State, Zip RE: Claim #: Date of Accident: Claim Demand Letter Re-type this letter to send to the responsible party along with your DVASSESS Diminished Value Assessment Report Dear (ADJUSTER S NAME), As a result of the above-mentioned automobile accident, I hereby notify you of my intent to make a claim for the diminished value of my vehicle. My vehicle has lost value due to the fact that it has been wrecked and repaired. Enclosed is a diminished value assessment report that I purchased that indicates that my vehicle has lost value in the amount of $(ENTER AMOUNT FROM REPORT) Due to the damage suffered by my vehicle, I will never again be able to obtain full value for it, either on a retail, private party or trade-in basis. The vehicle s damage history will be available to consumers or dealers through various vehicle history reporting companies like CARFAX. At this time, I hereby demand payment of $(ENTER AMOUNT FROM REPORT) as compensation for the diminished value of my vehicle. If you have questions, comments or offers you would like me to address, please notify me only in writing within 20 days. Otherwise I will expect your check for the full amount of my demand within 20 days. Sincerely, Your Name Address City, State, Zip

4 Explanation of the 2 major types of Vehicle Diminished Value Inherent Diminished Value is the sudden and unforeseen loss of value of a vehicle due to having sustained collision damage and subsequent repairs. This is not to be confused with normal depreciation that occurs to a vehicle over time. Inherent diminished value assumes that the vehicle has been repaired to industry standards. Although vehicle repair technology is of a high level, there is still a difference between the manufacturing process and the repair process. Consumers generally believe that a vehicle damaged by collision will never be the same and has a stigma that renders it less valuable than a similar vehicle with no damage history. With most states requiring disclosure of collision damage, airbag deployment and significant refinish work, as well as consumers having access to vehicle history reports, a vehicle s damage history will follow the vehicle wherever it goes. As a result, consumers will not pay the same price for a wrecked and repaired vehicle as they will for a vehicle with no damage history. Inherent Diminished Value is not a quality of repair issue of a specific vehicle. It is a loss of value based on general public perception that a vehicle repaired by a body shop is not in exactly the same condition as prior to the collision, that the refinish work done is not as good as that done by the manufacturer and that the structural integrity of the vehicle may have been compromised. As a result of these perceptions, a collisiondamaged vehicle will suffer from a loss of value perception and therefore a loss of marketability. Repair-Related Diminished Value is an additional amount of lost value beyond inherent diminished value caused by less than optimal repair work, less than quality parts, intentionally un-repaired damage, un-noticed kinetic damage and other un-found damage. Repair Related Diminished Value may require extensive re-repair to be reduced or eliminated. Examples of repair related diminished value include but are not limited to: obvious defects in paint work, unusual gaps in sheet metal, undiscovered or improperly repaired frame/unibody damage causing the vehicle to track or align improperly, utilizing less expensive aftermarket or salvage parts that were not specified in the repair estimate, not completing all repairs specified and paid for in the repair estimate and/or final invoice, and not following manufacturer and I-CAR repair specifications. Repair related diminished value can only be determined by physical inspection of the vehicle and is the responsibility of the repairing collision center/ body shop, not the at -fault party or their insurance company. The only exception that that would be if the insurance company recommended that you use their preferred shop. In that case the insurance company is responsible for the quality of work performed by their recommended shop. In the clear majority of claims, you will only be seeking compensation for the inherent diminished value of your vehicle, which assumes quality repairs.

5 General Reasons for the Existence of Diminished Value Based on our research, training and experience Some of these points may be helpful in your negotiations and can be included in your response letters. Body shops are unable to duplicate the emersion rust proofing and baked on finish provided by the manufacturer. Further, newly painted panels will fade at a different rate than the original paint. Partially refinished vehicles are prone to subtle defects that may not be initially detectable. Future complications are not uncommon. Any body filler material, caulk, and welds used in the repairs may crack over time, will appear different than the original manufactured process and will be noticeable upon inspection by a vehicle appraiser. Repairs and pull time to the unibody/frame, as well as repair or replacement of structural components are of great concern to consumers. These areas of repair or replacement that are structural in nature are under constant strain from the rigors of driving. If there is another impact to these areas, they may be damaged to a greater extent than they would from an initial impact due to weaker weld and steel strength. This potential increased damageability could result in an increased likelihood of injury to the occupants of the vehicle. Upon inspection, there will be noticeable signs that the vehicle has been repaired. A used vehicle appraiser will be able to detect that a vehicle has been involved in a collision and repaired. It is not possible for a body shop to exactly duplicate the manufacturing process. Manufacturers build vehicles to exacting engineering and federal safety standards. The vehicles are assembled and welded on an assembly line in a specific order that insures that these standards are met. Vehicles are then tested by the National Highway Traffic Safety Administration (NHTSA) and assigned safety ratings. Once a vehicles structure has been damaged, there is no assurance it will react in exactly the same manner as it was designed and built to. If so equipped, the manufacturer installed Vehicle Identification Tags, which are located on many body parts, will no longer be visible on replaced and refinished panels. This is another sure sign of collision damage. The largest resale market is the Dealer Trade-In Market. The largest percentage of vehicles purchased new from a dealer will be traded in toward the purchase of another vehicle. At the time of trade, the vehicle will be inspected by an appraiser who will certainly detect that this vehicle has sustained damage. Vehicles with frame/unibody and/or structural damage will no longer qualify for any manufacturer s Certified Pre-Owned Program. Collision damage causes a vehicle manufacturer s warranty and/or any extended warranty to be compromised or possibly voided.

6 Franchise vehicle dealers will not knowingly put a vehicle with moderate to severe structural damage or airbag deployment on their lot for sale due to damage disclosure requirements and potential liability issues. Vehicles accepted as trade-ins that cannot be resold on that dealer s lot are sent to auction. Virtually all major vehicle auctions require disclosure of structural damage, frame/unibody pull time and airbag deployment. As a result, dealers of the major franchise type will not bid on these vehicles. This constitutes a significant reduction in the potential market for the vehicle, which translates into a reduction of value at auction. As a result, any dealer accepting a collision damaged vehicle as a trade-in discounts the value significantly. Many dealers will refuse to accept collision damaged vehicles due to the uncertainty and financial risks in disposing of the vehicle. Vehicle damage histories will be available to consumers, dealers and banks through various vehicle history providers, such as CARFAX. No prudent, reasonably intelligent consumer would purchase a vehicle for its full predamage value, knowing its damage history (relevant fact). Many states require full disclosure of damage prior to the time of sale. Your success in pursuing a claim for the diminished value of your vehicle will be based on your not giving up. If the claims adjuster you are dealing with is not negotiating with you fairly, you will want to elevate the claim to their supervisor or manager. This often will get things moving in the right direction. If you are still getting nowhere with the supervisor or manager, you may want to consider filing a complaint with your state insurance commissioner s office. Common false objections and potential answers Below is a list of some of the common objections the responsible party or insurance company may try to use. We have also provided some sample responses for you to use in your response letters back to them. We don t pay diminished value claims in your state. You should respond by asking them why this is the case. Is there a specific legislated law or case law that says you do not have to? If so, please provide the state statute number or the case name that says so. We only pay diminished value if you sell your car. You should respond by saying; there is no legal requirement that I sell my car in order to be paid for diminished value. We need to know what your assessment is based on. You should respond by saying: This assessment is based on the experience of professional vehicle appraisers who are knowledgeable of how collision damage affects the value of vehicles. If you don t agree with the figures, then you should obtain an independent assessment of your own. Once you have that, send me a copy and then we will be able to reach a reasonable agreement.

7 If the responsible party requests any additional documentation The only other documentation they should ask for is Proof of Ownership - you can submit this information along with your response letter (copy of title or registration). If they ask for anything frivolous such as maintenance records, dealer delivery records, etc. this is nonsense. You have provided them with the proper documentation in the form of an independent diminished value assessment. If you find that you are getting no where with the claims rep or adjuster after the first two or three letters (becomes obvious that they are not authorized to actually negotiate the claim), contact the Claims Manager (call their main number to get that name and address) to push the negotiations further. You should read through your file be familiar with the facts of your claim read through our report and the letters that have gone back and forth know that their excuses are just that EXCUSES. Their opinions and calculations are BIASED and so are yours - that is why you submitted an independent, unbiased assessment report. We highly recommend that you attempt to reach a good faith negotiated settlement. However, if you find as a last resort that you must file a law suit, you should visit This legal information website has great information available on how to file, how to prepare and how to put on your case in small claims court. Most counties now have websites that will link to their various courts. Some of these court websites will have filing forms you can fill out right online or you can print out forms to fill out and mail in. If not, you can simply visit the clerk s office at the court to pick up the filing forms. Thank you for allowing the DVASSESS diminished value assessment system the opportunity to assist you with your claim. We wish you success and hope that you will refer others to us at