In the world of insurance, diminished value refers to the perceived loss of a car’s resale value following an accident, even after successful repair. To be compensated for your loss, you must submit a perfect diminished value report to your insurance firm. Understanding the process of making a high-quality diminished value report can go a long way in helping you to resolve your diminished value appraisal claim successfully. This article will disclose to you the tips to get the best diminished value appraisal report.
Tips to get the best-diminished value report
Understand the terminologies used
Before coming up with a diminished value report, you must familiarize yourself with the basic diminished value vocabulary. Of great importance, you must understand the three types of diminished value in the concept of insurance. These include immediate, repair-related, and inherent diminished value. The most common type of diminished value that you will most likely use in your report is the inherent diminished value.
Know how to calculate the approximate diminished value
Insurance firms use a controversial formula called “17c” to determine your car’s diminished value. You must also calculate your actual diminished value for comparison with the insurers. To calculate your diminished value, find out the average market value of your car model before the accident. Next, look out for similar vehicles with accident histories and find out their average post-accident market value. Lastly, subtract the average market value of the post-accident cars from the market value of the cars without any accident history to get your actual diminished value. If there is a huge gap between your value and the insurer’s, try renegotiating a better deal.
Keep your expectations realistic
We are all guilty of thinking that our vehicle is worth more than its actual value. It is vital to understand that diminished value claims are low in monetary value. For efficient resolving of your claim, it is wise to maintain realistic expectations.
Familiarize yourself with your state’s diminished value laws
Before presenting your diminished value report for consideration, familiarize yourself with your state’s laws concerning diminished value claims to avoid filing claims that aren’t recognized by the law.
Present the report in written format
When you present your diminished value report to your insurance firm, ensure you do it in writing. Include a timespan for the insurance firm to respond and be prepared to persist and even involve a qualified attorney if the insurance firm seems adamant.
As we speak, approximately 70 percent of second-hand cars are sold to private buyers and dealers who occasionally look up for your vehicle’s history to find out if it has been involved in any accident. These potential buyers aren’t going to offer you more cash if your car was previously damaged.
The only way to reclaim your diminished value is by drafting an excellent diminished value report for submission to your insurance company. These tips to get the best-diminished value report will ensure that you do not mess your diminished value report.