DIMINISHED VALUE CLASS ACTION LAWSUITS AGAINST ALLSTATE AND STATE FARM INSURANCE COMPANIES

DIMINISHED VALUE CLASS ACTION LAWSUITS AGAINST ALLSTATE AND STATE FARM INSURANCE COMPANIES

FORT PIERCE, Florida - We are now seeing the second and third of what may be multiple class action lawsuits brought against insurance companies for unfair claim practices in automobile diminished value claims, Allstate and State Farm now find themselves with their feet in the fire. The State of Illinois, following the lead of the State of Washington which presided over a class action lawsuit against Hartford Insurance Company, has certified two class action lawsuits that could lead to the insurers paying hundreds of millions of dollars to wronged claimants.

In addition to Illinois, the action against State Farm includes the majority of other states. This action could potentially cripple the insurer and topple it from it's perch as the largest insurance company in the United States.

It is interesting that California is one of the few states not included in the class action. State Farm has been particularly selective in placing impositions on Californians seeking to make diminished value claims. Inherent diminished value, unlike repair-related diminished value, assumes that vehicles were properly repaired but have lost value simply due to the fact that they now have a bad Carfax or other vehicle history report. State Farm, in an effort to dissuade claimant's from seeking expert representation from independent appraisers located in other parts of  the United States, has implemented a requirement that vehicles be physically inspected. 

An Illinois Court has certified two class action lawsuits against Allstate and State Farm for breach of contract against their policyholders. Court documents declare that the "plaintiffs argue that vehicles which sustain certain types of physical damage cannot be restored to preloss condition through the repair process."

State Farm's case includes all states except for AZ, CA, KY, PA and VA. Allstate's case includes the same states and Ma. Those who qualify must have had a loss of at least $1,000.00 on a six-year-old vehicle or newer with less than 90,000 miles since January 1, 1996.

Car owners  need to know their rights when it comes to automobile diminished value. In every state with the exception of Michigan (as of this writing,) owners of vehicles that were damagesd as a result of the other party's negligence, have a right to make a claim against their insurer for the diminished value of their car after repairs have been completed. In addition, there are a few states, Georgia, Kansas and Washington, where a policyholder may make a diminished value claim with his own insurer.

Allstate and State Farm will now go down the same road that Hartford did in Washington. At the very least it will cost them a tremendous amount of money in defense costs. I can only hope that justice is done in these class action lawsuits because, having seen how poorly claimants are treated in diminished value cases, and how ineffective State Insurance Departments have been in correcting these misdeeds, Allstate and State Farm deserve the full measure of punishment for their thousands of indiscretions.

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




AUTOMOBILE DIMINISHED VALUE APPRAISERS IN ALL 50 STATES



Automobile Diminished Value Appraisals nationwide including 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 and Wisconsin.

The fee for an Automobile Diminished Value Report is $225.00. You may also make your Credit Card Payment by telephone, call 772-359-4300. Credit card payments can be made on the PayPal page. Click on "Don't have a PayPal account?" to be taken to the secure credit card payment page. 

After making your secure payment please email all supporting information, including Year, Make, Model, VIN, Mileage, Engine, Color, Options as well as the completed insurance company appraisal to contact@stlucieappraisal.net or FAX to 772-466-8400.

NOTE: TESLA OWNERS PLEASE CALL 772-359-4300 TO ARRANGE FOR AN AUTOMOBILE DIMINISHED VALUE APPRAISAL. 

 

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Keywords for this article: class action lawsuit, diminished value, state farm, allstate, illinois,

USING A DEALER QUOTE FOR A DIMINISHED VALUE CLAIM

 

USING A DEALER QUOTE FOR A DIMINISHED VALUE CLAIM

FORT PIERCE, Florida - Many car owners making diminished value claims against insurance companies obtain a quote, or opinion, from their new car dealer that explains how much less their car is now worth because of having undergone repairs. In theory this appears to make sense. The St. Lucie Appraisal Company, in fact, obtains six dealer quotes to form the basis for our automobile diminished value reports. So why is this article going to warn you of the perils of taking this approach? It would seem that by doing so we are essentially discrediting our own methodology.

Insurance companies aren't exactly known for being generous and when it comes to paying for diminished value losses, they can get downright nasty. It is only since the advent of CARFAX and other vehicle history reports that both dealers and the general public alike can know what to expect when purchasing a used car. And, of course, as we all know, cars that went through collision repairs are less desirable to used car buyers than cars that were never wrecked.

Now that people are becoming aware of their right to file claims for the decrease in the value of their cars after collision repairs - known as inherent diminished value- they are setting out to prove the validity of their claims in different ways. The most common is to hire an independent appraiser that specializes in diminished value. These appraisers have different methods for arriving at their conclusions. And insurance companies, naturally, have found ways to discredit most of them. The first method is to use a formula which takes into consideration the nature and extent of the damages. This approach is confusing as well as arbitrary. One such formula is known as Rule 17-C which has become notorious for its inadequacies. Yet both independent appraisers and insurance companies alike continue to use them. The reasons are twofold, one - they can be tailored to meet the needs of whomever is using the formula - hence, the discrepancies between your appraiser's and the insurance company's conclusion and two - because they are easy. Preparing a diminished value report using a formula takes less than five minutes. The second method is to access automobile auction results that compare cars that were sold that had previous repairs with those that did not. Insurers have an easy time discrediting these reports because, while they do specify comparable year, make and model vehicles, they do not meet the criteria of describing your exact car with its mileage, options, etc. nor do they address the specific damage that was done to your car. 

The third method is obtaining actual dealer quotes that reflect how much less the pre-owned managers will pay for a trade-in that's got a bad CARFAX. Many car owners are naive enough to think that an insurance company will pay them $5,000.000, for instance, simply because that's how much less their dealer quoted them on a trade. There are two flaws in this approach. The first one actually does make sense - that a dealer might inflate the amount of diminished value in order to purchase your car for a cheaper price. Insurance companies use this argument when they deny your claim and I, for one, can't disagree with the logic. The other drawback to simply presenting a dealer quote as proof of the diminished value alerts the insurer to the fact that you are a cheapskate. If you aren't willing to pay for an independent appraisal, they surmise, then there's little chance that you'll actually ante up for an attorney when push comes to shove. The fear factor is no longer there.

So why is The St. Lucie Appraisal Company so successful at obtaining fair settlements for its customers by using new car dealer quotes as the basis for our reports? The reason is that the arguments and lack of respect that the insurers exhibited as detailed in the preceding paragraph no longer exist. The fact that you undertook the expense of having a professional report done - and not one of those $39.00 specials - has given your claim credibility. And the fact that none of the six dealers providing quotes has any vested interest in the subject vehicle invalidates any and all objections to using this methodology. It takes a great deal of time to obtain diminished value information in this manner but when the results are fair settlements for our customers, we feel that we've achieved our goals. I'm happy to be able to say that we've got the outstanding reviews to prove it!                               

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




AUTOMOBILE DIMINISHED VALUE APPRAISERS IN ALL 50 STATES



Automobile Diminished Value Appraisals nationwide including 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 and Wisconsin.

The fee for an Automobile Diminished Value Report is $225.00. You may also make your Credit Card Payment by telephone, call 772-359-4300. Credit card payments can be made on the PayPal page. Click on "Don't have a PayPal account?" to be taken to the secure credit card payment page. 

After making your secure payment please email all supporting information, including Year, Make, Model, VIN, Mileage, Engine, Color, Options as well as the completed insurance company appraisal to contact@stlucieappraisal.net or FAX to 772-466-8400.

NOTE: TESLA OWNERS PLEASE CALL 772-359-4300 TO ARRANGE FOR AN AUTOMOBILE DIMINISHED VALUE APPRAISAL. 

 

Check our Reviews on Angie's List

Keywords for this article: automobile, car, diminished value, dealer, quote, claim, insurance, ST. LUCIE APPRAISAL