Understanding the intricacies of a vehicle’s worth following an accident can often feel like unraveling a complex mystery. In this blog, we’ll discuss the key concept of auto-diminished value, an essential factor that’s frequently overlooked in post-collision scenarios.
What Is Auto-Diminished Value?
Auto-diminished value refers to the drop in a vehicle’s resale value post-accident, even after all necessary repairs have been carried out. In essence, a once-damaged vehicle, regardless of its current pristine condition, is often perceived as less valuable than its undamaged counterpart. This perception invariably results in a lower resale price, a phenomenon known as the auto-diminished value.
Quantifying Car Diminished Value
Calculating a car’s diminished value isn’t a straightforward task; it requires a deep understanding of the car’s intrinsic value, market trends, and buyer psychology. Auto appraisal experts usually adopt one of the three recognized methods: the 17c formula, the market approach, or the cost approach.
The 17c formula tends to be more conservative, often underestimating the actual diminished value, while the market approach offers a more realistic value by comparing similar vehicles in the market. Lastly, the cost approach estimates the diminished value based on the repair costs and any potential remaining damage.
Navigating Insurance Claims For Auto-Diminished Value
Claiming auto-diminished value from an insurance company can be a challenging endeavor. It’s important to note that many insurers don’t voluntarily acknowledge diminished value. However, with solid evidence, such as a professional appraisal report, you stand a better chance of asserting your claim.
Evaluating Auto-Diminished Value
A critical first step to assessing a car’s diminished value is to enlist the services of professional auto appraisal experts, such as Jared’s Auto Appraisal. They’re well-versed in accounting for all factors that contribute to diminished value, such as the vehicle’s pre-accident condition, the quality of the repair job, the extent of the damage, and the impact of the accident on the vehicle’s history report.
If you want to ensure that your insurance company offers you a fair settlement offer, filing a diminished value claim with Jared’s Auto Appraisal can help. We are one of the leading providers of vehicle appraisal services. We offer an in-depth understanding of our diminished value claims process, allowing our customers to get fair compensation for their cars. Get in touch with us today and let us help you with your car diminished value!