AUTO DIMINISHED VALUE APPRAISER, SERVICE THROUGHOUT FLORIDA

DIMINISHED VALUE EXPERTS
ST. LUCIE APPRAISAL CO.

MIAMI BEACH - If your vehicle has been wrecked and repaired, it has lost value. This loss in value is called Diminished Value. There are two types of Diminished Value. Inherent Diminished Value is, by far, the most common of the two. This supposes that the vehicle was properly repaired and the only diminution of value would be because the vehicle has a damage history. This makes the vehicle less desirable to buyers thereby shrinking the market, causing dealers to offer less in trade-in value. Repair Related Diminished Value is an additional amount that signifies poor workmanship and other improperly-done repairs. The State of Florida recognizes diminished value.

The newer the subject vehicle is, the greater percentage of Diminished Value it will sustain after a collision loss. The circumstances of the loss, whether the vehicle was towed from the scene because of accident-related damages, whether the vehicle sustained frame, unibody, steering and suspension damages, etc. help to determine what a dealer will pay. If the subject vehicle is an older model or had prior repairs, the percentage of Diminished Value will be lower.

Diminished Value is owed to vehicle owners who were not at fault in the accident. If the liability insurance carrier for the at-fault party owes for repairing your damaged vehicle, they owe for the Diminished Value as well.

In some states the collision carrier is responsible for Diminished Value compensation. On November 28, 2001, the Georgia Supreme Court made a decision regarding automobile diminished value. It is known as Rule 17c. The court's decision, made it the law that all insurance companies doing business in Georgia must assess and pay for any loss in market value for vehicles damaged in a wreck and repaired, as part of the damages of the claim. In various states, the 17c formula has been overturned in courts many times. Most adverse rulings are based upon the market psychology of a “wrecked vehicle,” rather than an actual, identifiable and quantifiable loss in value.

Commissioner of the Florida Department of Insurance, knowing full well the difference between first party and third party claims, published Informational Bulletin 84-270 clarifying Florida law on the issue of diminished value, and requiring insurers to restore insureds’ vehicles to substantially the same function, appearance and value. The suggestion that this published Bulletin relates to third party claims rather than first party claims is misplaced. The Insurance Commissioner could have limited his statement to third party claims, but did not.

In fairness to all parties concerned, we calculate Diminished Value based on trade-in value rather than retail value. By doing so, vehicle owners obtain a fair settlement amount which insurance adjusters can live with. In general, the greater the value of the vehicle, the greater diminution of value occurs. The type of damage also has a significant impact on Diminished Value.

The St. Lucie Appraisal Company performs Diminished Value appraisals throughout Florida.  You are welcome to email contact@stlucieappraisal.net  with any questions you may have.

The St. Lucie Appraisal Company
P.O. Box 2700
Fort Pierce, FL 34954
Tel: 772-359-4300
Fax: 772-466-8400
eMail: contact@stlucieappraisal.net
Web Site: http://stlucieappraisal.net/