Diminished Value (DV) is the loss in market value of a motor vehicle from its pre-wreck fair market value due to the vehicle being in a wreck and requiring cosmetic and/or mechanical repairs. Diminished Value may be attributed and applied to various Motor Vehicle Claims.
Who's Entitled to Diminished Value?
Should your damages be the result of another's negligence, you may be eligible to collect your Diminished Loss in Vehicle Value from the at-fault party or their insurance carrier, if applicable. Diminished Value Claims are recognized by most states.
"An insurer also may be obligated to pay a third party claimant for any loss of market value of the claimant's automobile, regardless of the completeness of the repair, in a liability claim that the third party claimant under the uninsured/under-insured motorist coverage provision of the policy, for any loss of market value of the first party claimant's automobile, regardless of the completeness of the repair." April 6, 2000: Commissioner's Bulletin # B-0027-00 by David Durden, Texas Department of Insurance
"The difference between the value of the chattel (personal property) before the harm and the value after the harm or, at the plaintiff's election, the reasonable cost of repair or restoration where feasible, with due allowance for any difference between the original value and the value after repairs, and the loss of use." November 4, 1997: Legal Memorandum by John R. Dunphy, Florida Department of Insurance
"The difference in the dollar amount of what your car would have sold for without damage, and the amount it will likely sell for with the repaired damage." "Fact Sheet" prepared by the Washington State Insurance Commissioner
"Inherent Diminished Value" is based on public awareness that even if a damaged vehicle is repaired to the best of one's human ability, it will still exhibit remaining deficiencies and inconsistencies from the pre-loss condition of the vehicle prior to the wreck. These deficiencies include, but are not limited to:
• Weaker structural components that appear cosmetically sound.
• Impossible to duplicate factory seams.
• Telltale signs of repair, such as paint missing off the head of bolts etc.
• The unavailability of some factory decals, and markings (e.g. VIN labels)
• Undiscovered kinetic damage throughout the vehicle.
• The increased likelihood of a mechanical failure due to direct and/or kinetic damage.
• The effect that the repair will have on the future deployment of the SRS (air-bag) system.
• The infeasibility of duplication immersion and/or robotic applied rust-proofing techniques.
• The loss of factory warranties & eligibility of Certified Pre-Owned vehicle warranty programs.
• Wreck Damage and/or Collision Damage noted on CarFax and Auto Check Reports.
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