If you are doing research on how to get paid for your vehicle’s diminished value, then you know that the advice on the street is to get a diminished value appraisal from a qualified expert. Are you feeling lost or overwhelmed in the process? You aren’t alone!
Insurance companies count on vehicle owners not knowing about the law, specifically the made whole doctrine. They use the lack of knowledge by the layman to prey on accident victims for profit. Right now, many of the accident victims that are reading this article are being further victimized by their own insurance company, and many times the adjusters that are doing the victimizing have been indoctrinated to believe they are doing the right thing and that they are within the law.
Additionally, in the vast majority of cases the insurance company that is responsible for settling the claim with you gives you an unfair and invalid diminished value claim denial. In my view, the denial of these valid claims is an act of fraud.
The primary reason is that there are very few attorneys and even fewer accident victims that really understand the denials. Because of that, it is difficult for the accident victim to defeat the illogical and unlawful reasons that insurance companies use to deny diminished value claims.
I thought long and hard about what I could do to help accident victims get fair compensation for lost value, and outside of preparing an appraisal for them and directing them to an attorney that will take their case, the best I can do is to educate. So that is exactly what I will do right now!
I’ve already published one article that gives some responses to common denials, but in this post, I am going to pull out the stops and address every denial reason I can find, and provide all the proper reasons why the denials are invalid, improper, and in most cases, fraudulent.
This can be very difficult for the average accident victim. Can you just call around and get auto dealer quotes to prove your loss?
Knowledge of the proper methodologies and form for presenting valid supporting data eludes most laymen.
As a former licensed adjuster and current owner of a claim services company, I can attest to how hard it is to document diminished value in a credible manner.
In a professional forum for diminished value providers, we had a member inquire about how the amount of the repair bill affects the diminished value (inherent) 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.
Anytime you’re involved in an auto accident and it was not your fault, you potentially have a third party claim.
If the at fault party has liability insurance, then when you file a claim with their insurance company and you have a third party claim.
I have read quite a few articles that give a lot of bad information about adjusters. The thing I have noticed about those articles is that none of them were written by an insurance adjuster!
I’d be willing to bet that if you have not been an insurance adjuster, then you believe insurance adjusters are almost as bad as used car salesmen or attorneys, hehehe. It is a common view. I can’t speak for every single insurance claims office out there, but I can say that I have worked for 5 different non-standard companies as an adjuster, and I have worked on contract for many standard companies as a recovery specialist with a firm.
I have never been instructed to deny any valid claim, nor have I been advised to “low-ball” claimants.
This might happen at some companies, but it is definitely not the norm. Insurance adjusters (if they care about their license) will usually try very hard to fairly resolve claims.
I will say that I have definitely dealt with some companies that have some “questionable” practices.
I won’t name names, but some of these companies simply attempt to cut costs by hiring inexperienced adjusters and giving them a “rule-book”.
It is the inexperience of the adjuster in interpreting the “rules” that causes the majority of the issues.
The vast majority of insurance adjusters have had no formal training in valuation appraisals.
The unfortunate fact of the matter is that insurance adjusters work for an insurance company and are forced to work within the policies of the company they work for.
Unfortunately, insurance companies train employees and adjusters to deny diminished value claims, even if the evidence is overwhelming.
It is such a rampant practice that they even provide adjusters with several arguments to use and most companies provide form letters that make silly arguments about why they won’t pay for diminished value.
Does it really happen?
How do you know if you’re being steered?
Anderson Cooper at CNN just did a story on lawsuits that are being filed against huge insurance companies who continually dictate what is repaired on vehicles after an auto accident and this video is worth watching until the end!
After buying a report for her Volkswagen diminished value claim from one of our large competitors who makes it to the top of all the Google searches, Amy found herself helpless when her 2012 Volkswagen diminished value claim was denied. She started to research for herself which led her to our site where she signed up for a free claim consultation. (more…)