Diminished Value 101

Diminished Value 101

You might be owed money! If someone else damages your vehicle in a collision, you are most likely entitled to file a diminished value (DV) claim. Even after your car has been repaired (and for the sake of this article, we’ll assume that the repair was performed correctly by skilled experts*), you may be owed thousands of dollars. Before we get into the HOW of filing a diminished value claim, let’s define what the term actually means. Diminished Value is the loss in market value of a property (in this case, your vehicle) due to it having a history of damage. Not to be confused with depreciation (expected wear and tear related loss in value), DV is the result of a sudden and unexpected loss in economic value. In plain English, diminished value is the difference in the amount your car was worth BEFORE it was damaged, and what it would sell for AFTER it was damaged (even if it was repaired properly). Not everyone is eligible to recover a DV claim. In the event that you are the “at-fault” party in the collision, you will not be eligible to claim the diminished value of your vehicle. However, if your damages are the result of another’s negligence, you may be able to collect the remaining loss from the at-fault party or their insurance carrier, if applicable. In order to establish the actual value of a diminished value claim, it is best to contract an independent appraiser who is skilled in the area of post-repair inspections. They are best able to assess the quality of repair, and they know how...

Reconditioned Wheels

What Goes Around…May Just Come Back to Haunt You! Along with many other potentially devastating liabilities faced with in the collision repair industry, as a repairer and now industry advisor and consultant/coach, “Reconditioned Wheels” has been one of my greatest concerns for some time. While called for, and employed across the country on a daily basis, these reclaimed and repaired wheels pose serious and significant safety concerns. My concerns began back in the mid 90’s when I replaced a repaired wheel obtained from a supplier listed within the repair estimate prepared and provided by my customer’s insurer. Several weeks after delivery, the customer came back with a concern over his tire going flat. He’d taken it to his tire store to have it repaired only to find that his tire was fine and that the wheel itself was leaking air, and not around the bead, but through the rim where a repair had been performed and where a remaining crack or fissure remained which allowed air to escape through the rim. I realized then that once damaged and repaired wheels are susceptible to having remaining flaws and defects and the distinct liabilities they posed for me and other repairers. While the opportunity to recondition once damaged wheels surely proves to reduce repair costs for insurers and consumers, the considerable risks of failure and potential for serious property damage, injury and even death and the associated liabilities are just as real and far more significant for repairers. Perhaps no entity understands this better than the Original Equipment Manufacturers such as BMW, Daimler-Chrysler, Ford, GM, , Honda, Nissan, Toyota and others...
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