Diminished Value is the biggest secret in the auto insurance industry. I am actually here to impart a revelation and that diminished value is not really a secret. This is just something that the majority insurance adjusters failed to realize and understand.
The truth is that they all knew about this and so do you or you would have not searched about diminished value until you found this article. The problem here is that no one seems to know the proper means of calculating diminished value. The known 17c formula is a big joke.
It just takes some credentials and a bit of hard work. There are several companies that are already utilizing proper scientific method in calculating the diminished value. In about 14 years of making adjustments, I have witnessed less than five reports that are probably considered as good evidence in civil trials.
The real secret behind is reality and diligence. Simply because an individual has plenty of experiences in selling vehicles, appraising damages and auto claims does not necessarily signify that this person can accurately make diminished value calculations. No one, regardless of the experience this person has, can actually give a diminished value without gathering sales and market data.
If there is some sort of thing like secret when talking about diminished value claims, then this has to be in the means on how claimants negotiate. The big problems I encounter are ignorant adjusters and strategies that various companies utilize which is actually “playing dumb”.
Problem No. 1
The first problem is the adjuster that simply does not understand diminished value. The adjuster is trained to deny payments and in case it does not work, then the department designated to deal with physical damage typically comes up with a few ridiculous figure to provide and no one can manage to argue with their calculation’s merit. Adjusters will plainly expect you to agree and take their deals and offers for the reason that “they are experts”. This seems to be a complex scenario to overcome and it really takes specialized tactics.
The second problem includes the company that plays dumb. The company’s tactic is acting like they are completely unfamiliar with diminished value and would say that they have never heard about this before. Once again, this is another tactic that is quite difficult to overcome. The most ideal way of handling companies that act like this is to be well updated and informed.
In some instances, recording case law preference is an effective and ideal way of letting the insurance company figure out that you are not actually playing their tricky games. You have to believe me when I tell you that there is really no insurance company out there that is not aware or familiar with diminished value. However, people seem to deal with this on different manners.
The bottom line here is that diminished value really exists and there is a possible way of documenting and calculating it that will certainly hold water in front of the jury. Individuals who have diminished value claims are tasked to find the most reputable and competent expert to help them figure out ways on how to get their money and create a report which substantiates calculation of diminished value.