Join us around the campfire!
I think most people get this, but I get this question all the time, so I am writing this article in an attempt to properly explain why a total loss settlement does not include diminished value.
Diminished Value is the loss in re-sale value of a vehicle after it has been in a wreck and then repaired.
A Total Loss occurs when the insurance company decides that they are not going to repair your vehicle.
Unfortunately, because auto total loss disputes are usually less than $10,000.00, it is an area that hasn’t traditionally attracted attorneys (but there are a few attorneys that will fight for you).
In fact, because the amounts in dispute are typically under $10,000.00, most insurance companies don’t even train their claims staff about the appraisal clause.
I know.
I was an adjuster for over a decade and NOT EVEN ONCE was the appraisal clause mentioned. If you invoke the appraisal clause, you can bet that you will be dealing with a claims representative that has no clue what they are doing (if you’re an adjuster that thinks you know better, prove it).
I educate adjusters and insurance carriers every week about this little known right that their insureds have.
First of all, the terms Actual Cash Value (ACV) and/or Fair Market Value (FMV) are sorely lacking and ambiguous when it comes to actually helping to define the value of a private passenger automobile.
In fact, the formal definition in almost every source one can find leaves out the MAIN ASPECT that would make the definition useful.
The terms ACV and FMV are so ambiguous that they are totally meaningless when it comes to figuring out the value of your vehicle.
Start with familiarizing yourself with the “formal” definitions.
If you’re a victim of the recent flooding in South Texas and have a total loss due to flooding with your carrier, you should call our office immediately and make sure that any offer you get is fair and reasonable.
Now that South Texas is dealing with the aftermath of Hurricane Harvey and Florida and Georgia brace for the impact of category 5 Hurricane Irma, victims will undoubtedly be dealing with total loss claims in exponential numbers and they need to know that insurance companies routinely handle these claims in a very dogmatic manner.
The biggest tactic is for a carrier to simply refuse to negotiate.
They will simply tell you, “take it or leave it”.
They like to claim that they do not have the authority to negotiate outside of their captive company market reports.
This is completely untrue and you can fight it.
Hey guys!
It has been quite a while since we had time to post on our blog because we’ve spent our year so far helping tons of accident victims get a fair shake when dealing with diminished value and total losses.
We’ll start today with our latest success on a little known power you have against your own insurance company (1st party claim) if you have a total loss:
Even if you know about the appraisal clause, it doesn’t mean it will be effective for you since most insurance companies have their own idea about how the appraisal clause works (even though it is in black and white in the contract) so you have to have an experienced expert that knows the rules and how to navigate the process legally.
We have inside knowledge that the appraisal clause is on top of everyone’s mind working inside the claims department because it is costing them a ton of money to defend the practices of their uneducated adjusters.
The requirement that appraisers and umpires be “disinterested” is something that the insurance companies purposely and habitually fail to recognize.
The two appraisers working the claim must be totally disinterested. Their concern should be about the TRUE VALUE of the loss.
It isn’t YOUR SIDE VS. THEIR SIDE. It is NO SIDE VS. NO SIDE!
To the surprise of me and my client’s attorney, we recently had a Judge that said YES. Insurance adjusters are trained to say YES to the title question, too. But what do you think?
The graphic with this article sorta sums up why the law does not agree with the Judge or the insurance adjusters, but I’ll go a little further to drive the point home.
Am I richer when the prices of my stocks go up?
Am I poorer when my stock values are down?
If average home prices around the home I own rise, am I richer?
If I trade my Lamborghini even for a Toyota Corolla, am I richer, or poorer?
If the doctor says I need a $10000.00 surgery to save my foot, am I richer if I don’t get the surgery?
If I lose my foot, and then use a prosthetic, is the cost of maintaining and replacing the prosthetic, along with the future medical costs I will incur part of the value of my claim, or does it only count when I actually go and pay for the care?
If everybody in your neighborhood paid $500 for a grill from the hardware store, and you found an identical one on Craigslist for $325.00 and still in the box, what is the market value of the grill?
If I have a Rolex valued at $22,000.00 by a well known Rolex appraiser, and I sell it for $18000.00, did I change the value of the Rolex?
Additionally, this article is based on my 15 years of claims adjusting experience. I have developed a simple little formula that will help you decide if you need an attorney or not. Keep in mind, this quiz is tailored for auto accidents only, and I make no warranties or guarantees that your result is a foolproof answer.
With that being said, simply answer the following 15 questions and then add up your answers. All of these questions are yes or no questions. Whatever answer you have the most of is your answer to the title of this article.
We talk to a lot of people from day to day and many times, Justin has to tell people who call the hard truth that it might not be worth spending money but sometimes, with just that one call, he can help you make decisions that could make you money in the end!
There aren’t a lot of experts out there talking about total losses so Justin decided to share his experiences with some of our clients with you good people researching about how to get your total losses settled.
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!
If you have a repairable collision claim in Texas, then you may be entitled to recover for your vehicle’s diminished value. In Texas, if you file a third-party auto claim, then if your claim meets certain standards, you would likely recover diminished value if the case went before a jury.
Diminished value in Texas compares to other states in this capacity through the negligence law rules.
In Texas, if one is over 50% at fault for a loss, then they cannot recover damages from a less negligent party.
The kicker is that if they are only 10% at fault, then that 10% can be deducted from their damage amount. Some States have a law that applies negligence in a pure manner.
For example: if you are 10% at fault, then you owe 10% of the other person’s damages. If you are 61% at fault, you can still recover 39% of your damages.
The point, and to answer the question in the title of this article, is that YES you can get paid for diminished value in Texas.