Diminished Value is something that only a small portion of the population actual knows about. Part of our mission is to help educate people about Diminished Value and how the process works.
According to a recent nationwide survey, almost 80% of the people surveyed were concerned that their insurance rates would go up if they tried to pursue a Diminished Value claim. All this tells us is that the subject of Diminished Value is simply not understood.
Here’s an example.* Let’s say that you are driving a car and you are insured by ABC Insurance. Now, let’s say that someone comes along and hits your car. This person is covered by XYZ Insurance. If the person that hits your car is deemed to be “at fault” (meaning that they were responsible for the accident), then they are responsible for the financial loss that you have suffered.
Most people simply think of the cost that it will take to repair the vehicle. They expect to get money from the other person’s insurance company, XYZ Insurance, to repair the car. They DO NOT expect that their insurance premiums (from ABC Insurance) will go up because of this.
What most people don’t know (and the insurance companies certainly don’t promote) is that they actually owe you more. Most people leave thousands of dollars on the table! That other insurance company may ALSO owe you money for the Diminished Value that you car has suffered.
So if your insurance rates won’t go up because the other person’s insurance company paid for the actual repairs, why should your insurance rates go up because the other person’s insurance company paid for the loss of value (Diminished Value) your car has suffered? The answer is simple: your rates won’t go up. The money isn’t coming from your insurance company; it’s coming from THEIR insurance company.
As an aside, calculating Diminished Value can be a bit tricky and the insurance companies know all the tricks. It’s their industry; they’re expected to know the tricks. Additionally, once you’ve requested Diminished Value from an insurance company and they make an offer, getting them to then change that offer is difficult at best. Unless you know exactly what you are doing, they will almost always give you a lower figure than what you could get if you had used professional services prior to requesting the Diminished Value claim.
For more information on Diminished Value and Diminished Value Claim Recovery, please visit Advocate Auto Claims.
*Please note that this is not meant to be a legal summary of proceedings or interpretation of law or anything like that. It is merely an illustrative example to help you understand the concept.