Arguments Against Diminished Value Versus The Truth

Diminished Value ArgumentsRecently I was provided with a pretty big list of arguments that attempted to show why diminished market value on automobiles is not real, or at least why it is never very much.  I am going to address each one, point by point so as to be very thorough.  Mind you, these arguments were made by a professional who evaluates the market of stigma losses on automobiles.

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The Placebo Effect / How It Affects Your Diminished Value Claim!

I guess most of us have heard of the placebo effect, but just in case. . . here’s my definition:

Being told that a pill (you don’t know it’s just sugar) is a fix for a problem, then having the problem resolve.  The healing effect due ONLY to the belief of having a healing medicine, and not any actual physical medicine.

placebo-brain

©iStockphoto.com/ FotografiaBasica

I think this is a great example of the power of thought on the physical world.  It is at the very least, evidence that it may be possible to think healing into being.  As I was reviewing my historical records of how diminished value claims are settled, I began to think about and analyze the conversations and belief patterns of my customers as they behaved and thought about their insurance claim potential.  The placebo effect is rampant.

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Diminished Value and Kelley Blue Book

Recently, I had a case where an adjuster was negotiating an inherent lost market value claim based on values and condition descriptions found in Kelley Blue Book.  The amount of inherent lost value that the adjuster was willing to pay was about $4k less than what my research and opinion came out to.  Obviously, I argued that Kelley was not accurate, and naturally, the adjuster requested a synopsis on why I believed that using Kelley Blue Book was not a reliable method for researching inherent lost market value, or DV as it is becoming common to call it (diminished value).

I happily obliged the adjuster, and here in this blog entry, I will re-cap why I think using Kelley Blue Book (or any other online valuation guide) to calculate DV is a severely lacking and inaccurate method.

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Severity of Damage and Inherent Diminished Value

auto repair

In a professional forum for diminished value providers, we had a member inquire about how the amount of the repair bill affects the inherent diminished value of a vehicle.  It is my experience that the amount of damages is an imperative factor to have in order to accurately assess diminished value. Let’s dig right into the details. . .

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Subrogation: Are you the Tortoise or the Hare?

subrogation tactics, tortoise or the hareIf you don’t know what subrogation is, then this article isn’t for you.  In this posting, I am speaking only of personal automobile subrogation recovery.  A recent teleconference with some claims professionals made me think of this blog posting.

Subrogation recovery is a difficult skill to master.  There are two fundamental approaches to maximizing recovery.  One approach focuses on speed, and the other is based on securing the most future money. Think of the fable “The Tortoise and the Hare” and the lesson it teaches.  We believe that lesson is well applied in the area of subrogation, and our long term numbers can prove it.

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