Frequently Asked Questions:
Why should I care about diminished value?
Diminished value is the recovery for the difference in your vehicle’s lost value due to a loss. When selling or trading your vehicle, Carfax and other sources with show accidents and therefore affect your vehicle’s value or influence the potential buyer. There may be a value difference of several thousand dollars due to your loss and you are entitled to that difference.
When is a vehicle considered "totaled?"
It most states a vehicle is considered a total loss when the repairs reach 75% of its value. If the vehicle has a $10,000.00 value, if the repairs reach $7,500.00, it is considered a total loss.
Do I need an appraisal to purchase a vehicle?
If you are purchasing a vehicle out of state or need a pre-purchase inspection, it is always a good idea to have the vehicle inspected or appraised prior to purchase for peace of mind.
Do I need an appraisal if I'm donating my vehicle to charity?
Its a good idea to get an appraisal for your donation for tax purposes and the value of your donation.
What if I've already settled? Can I still file a diminished value claim?
Diminished value claims are separate claims from your repair settlement or bodily injury. Most states have a statute of limitations up to 3 years to settle or submit a diminished value claim.
Do I have to sell my vehicle to make a diminished value claim?
No, diminished value claims can be pursued and settled while you own the vehicle and there is no reason to sell the vehicle to get diminished value.
Do I need a special appraisal or special insurance for my collector car?
Most insurance companies carry an ACV (actual cash policy) for collector or custom vehicles. This means the vehicle is insured for its actual value in case of a loss.
Do I have a right to get my own appraisal on an insurance claim?
Insurance policy language allows for “the right to appraisal” clause. You are entitled to get an appraisal on your own vehicle due to a loss, diminished value or for total loss value.
What is fair market value?
The price that a person reasonable interested in buying a given asset would pay to a person reasonably interested in selling it for the purchase of the asset or asset would fetch in the marketplace.