AUTOMOBILE APPRAISAL FACTS - BANKRUPTCY, ESTATE DISSOLUTION, FINANCING, A CHARITABLE DONATION, INSURANCE AND DIMINISHED VALUE

AUTOMOBILE APPRAISAL FACTS - BANKRUPTCY, ESTATE DISSOLUTION, FINANCING, A CHARITABLE DONATION, INSURANCE AND DIMINISHED VALUE

The many different types of vehicles we appraise for bankruptcy, estate dissolution, financing,  charitable donations for tax deductions, insurance, valuation disputes, purchase & sale and diminished value have made the process so much easier for vehicle owners, prospective buyers, attorneys and executors of estates. They include antique, exotic, custom and modified cars as well as regular commuter cars. You can hire us to appraise a heavy truck, luxury RV, customized motorcycle, boat, farm machinery and construction equipment. Not only does our experience assure expert reporting, at St. Lucie Appraisal, we recognize that each situation calls for a different type of appraisal.

In bankruptcies, court-appointed trustees typically assign a Black Book value to your car or truck. Taking into consideration the various damages and necessary repairs to the body, mechanics and interior of some vehicles, they are worth far less. A Fair Market Value appraisal assures that bankruptcy filers can keep their vital transportation for a realistic price. This fact is even more critical when evaluating larger and more valuable vehicles.

Estates are not only comprised of real estate and tangible personal property - there are usually motor vehicles involved. Appraising Fair Market Value of a classic car, RV or boat is important both for satisfying beneficiaries and to facilitate a timely disposal of the items.

Banks often require an appraisal for financing a custom car or other exotic vehicle where book values aren't readily available. Many modified cars have undergone extensive and costly rebuilds, fabrications, entertainment system upgrades and power enhancements. Restorations of antique cars are similarly expensive. These things don't always translate into enhanced value but when they do, it needs to be reflected on the appraisal.

Donating a car, truck or RV to a charity or non-profit organization requires an appraiser who makes certain the full Fair Market Value is reflected and, above all, that his comparables are rock-solid. Always check to see that an appraiser has not been disqualified by the IRS.

Many small insurers take on risk without adequate information but the larger insurance companies usually require an appraisal before writing policies on antique and customized vehicles. Examples are high-performance modified cars, restored high-end antique cars and choppers. Also, RVs and used construction equipment are types of vehicles typically requiring Actual Cash Value appraisals before insurance coverage is provided. Insurance valuation disputes are common. St. Lucie Appraisal can help to reach a fair compromise before arbitration or litigation becomes necessary.

Americans are becoming more and more aware of Automobile Diminished Value and how much less their cars are worth as a result of undergoing accident repairs. There is a good chance that your insurance agent or adjuster hasn't made you aware of your right to receive compensation for that lost value from the insurance company of the at-fault driver. Hire an appraiser who at least possesses an adjuster's or appraiser's license from one of the 50 states in order to provide a credible Automobile Diminished Value Report.



The St. Lucie Appraisal Company
P.O. Box 2700
Fort Pierce, FL 34954
Phone: (772) 359-4300
Fax: (772) 466-8400
Email: contact@stlucieappraisal.net

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Services available in all 50 states

 

 Alabama,  Alaska, Arizona,  Arkansas, California,  Colorado,  Connecticut,  Delaware, District of Columbia, Florida,  Georgia,  Hawaii, Idaho, Illinois,  Indiana,  Iowa,  Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts,  Michigan,  Minnesota,  Mississippi, Missouri,  Montana, Nebraska, Nevada, New Hampshire,  New Jersey,  New Mexico,  New York, North Carolina,  North Dakota, Ohio,  Oklahoma, Oregon,  Pennsylvania,  Rhode Island,  South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

Our rates for services are as follows:

Auto Appraisals (Donations, Bankruptcy, Divorce, Insurance Disputes) $125.00

Stated Value Appraisals (Antique & Classic Cars, Street Rods, Motorcycles, RVs, Trucks) $175.00

Auto/Truck/RV Condition Reports $225.00 and Up

Diminished Value Appraisals (Determines how much less your car is worth after accident repairs) $225.00

Personal Property Appraisals (Contents, Collectibles, Art, Antiques) $225.00 and Up

All other services and additional time when necessary  $75/Hr.

Expert Witness - Court Appearances, Depositions, Mediation $225/Hr.

You may obtain appraisals for Financing, Charitable Donation Tax Credits, Collateral, Damage Claims, Equitable Distribution, Bankruptcy, Estates, Insurance Stated Value, Purchase & Sale and Diminished Value.

Appraisals of Personal Property, Art, Boats, Classic & Custom Autos, Antiques, Collectibles & Memorabilia, Electronics, Machinery, Motorcycles & Choppers, Furnishings, RVs, Trucks & Heavy Equipment.

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Keywords for this article: automobile, appraisal, appraiser, bankruptcy, estate, financing, charitable donation, insurance, diminished value, antique, custom, exotic, truck, RV, motorcycle, boat, St. Lucie Appraisal, fair market value,

STATE FARM INSURANCE COMPANY AND AUTOMOBILE DIMINISHED VALUE

STATE FARM INSURANCE COMPANY AND AUTOMOBILE DIMINISHED VALUE

FORT PIERCE, Florida - Do you own a late model car that was damaged in a collision that was a result of someone else's carelessness? Of course most of us are aware that, even though our automobiles were repaired to perfection, that they are now worth a lot less because of the bad Carfax and other Vehicle History Reports that are now permanently attached to them. When you call The St. Lucie Appraisal Co. for an automobile diminished value report, you have questions. But that's not all - most of you also have some astonishing tales to tell. And it's hard not to share your outrage after hearing some of these stories. In this article we'll look more closely into some recent State Farm Insurance Company claim practices that certainly got my attention.

 

In the first instance, a claimant in Florida filed an automobile diminished value claim against State Farm after her 2010 Nissan Versa was repaired. The vehicle had a pre-accident trade-in value of $8,750.00, repairs were approximately $5,600.00 and State Farm's file handler offered the claimant $700.00 for diminished value. The offer was based on a report compiled by an independent appraisal company hired by State Farm to evaluate the claim. St. Lucie Appraisal's automobile diminished value report, based entirely on verifiable dealer quotes, resulted in a loss of value of $2,400.00. State Farm's file handler told the claimant that automobile diminished value settlement figures over $2,000.00 were typically for Porsches and BMWs.

 

Two things became apparent after further examination of their document; that State Farm hired an unlicensed appraiser to prepare their report and that the appraiser's diminished value figure of $700.00 was based on nothing at all. At least nothing that was visible on his report. There were no quotes from auto dealers, no auction results, not even a formula that would explain how he arrived at the figure.

 

Florida Statutes 626.855 defines a “RESIDENT INDEPENDENT ADJUSTER” as any person who is self-employed or is associated with or employed by an independent adjusting firm or other independent adjuster, and who undertakes on behalf of an insurer to ascertain and determine to amount of the claim, loss, or damage payable under an insurance contract or undertakes to effect settlement of such claim, loss or damage. A 5-20 All Lines Adjuster's license is a requirement for appraisers who perform such tasks as obtaining agreed repair prices and diminished value settlement amounts. What would possess State Farm to make such a questionable choice? During my conversation with State Farm's file handler, I asked him to explain how his independent appraiser arrived at the $700.00 figure. After perusing the report, he had to concede that he didn't know. I also took the liberty of correcting his statement to the claimant, as if he wasn't already aware, that Porsche and BMW diminished value figures reach well into the tens of thousands of dollars.

 

The second instance involves a different unlicensed appraiser. A claimant in Florida brought her damaged vehicle, a 2011 Honda Pilot, to a State Farm-approved auto body shop that is part of a Honda dealership. The vehicle had a pre-accident trade-in value of $27,500.00, repairs were approximately $10,500.00 and State Farm's file handler offered the claimant $900.00 for diminished value based on a report from the same appraisal company referenced above. Our automobile diminished value report, again based entirely on verifiable dealer quotes, resulted in a loss of value of $5,600.00.

 

The body shop manager, who ostensibly represents State Farm, gave the claimant's contact information to yet another independent appraiser who called the claimant and offered to work on their behalf preparing an automobile diminished value report. Even after the claimant refused his solicitations, he continued to call. Why would a vehicle owner rely on his impartiality, having been recommended by a representative of the insurer? Once again, the appraiser in this case is not properly licensed in the State of Florida.

 

A question of collusion exists in this scenario and raises questions about how State Farm approaches automobile diminished value claims in general. Similar scenarios are being played out in all 50 states. Every insurance company is concerned with cost containment both in claim payments and claim handling expenses. How inexpensively can appraisers prepare automobile diminished value reports that show no research data? If what I saw is all there is, St. Lucie Appraisal could churn out hundreds of them every day for about twenty dollars apiece. The sad fact is that car owners faced with huge losses after collision repairs are playing against a stacked deck. Misinformation and low-ball appraisals from unqualified vendors seem to be the rule of thumb at State Farm but at least the situation has improved from when the insurer refused to recognize the existence of diminished value at all.

Keywords for this article: State Farm Insurance, automobile, diminished value, Carfax, The St. Lucie Appraisal Company, appraiser, appraisal, report, claim, unfair, practice, license, adjuster, Florida

Updated on 05-25-2013, Updated on 06-18-2013