Katherine reached out to us after her daughter’s 2020 Mazda CX-5 got totaled by a hail storm. Once she got an offer from her insurance carrier Travelers, she did her research and felt the offer was very low.
She reached out to us for a free claim review and we agreed that it seemed like her vehicle should be worth around $21K when compared to the market.
Her offer was $15.9K before taxes and, after the appraisal clause process, she was awarded $20.7K for the value of her vehicle. This happens over and over again for our customers and you could be next if your claim is worth it.
Reach out today if you’re dealing with a total loss and see if you’re leaving money on the table!
With storm season raging on in Texas and the surrounding states, many people are dealing with not only damage to their homes but also major damage on their vehicles.
If your car was totaled due to hail or other storm damage, let us run the numbers when you get your offer to see if you’re getting a fair value – we do that for FREE so you have nothing to lose! If you’re being lowballed by a CCC report or some other computer generated valuation, you can fight with the Appraisal Clause to get a fair value for your vehicle and it makes a world of difference.
With the Appraisal Clause, you can also dispute the repair amount if the shop and the carrier disagree on what the repair should entail. Keep in mind that State Farm in Texas has removed the Appraisal Clause language out of their contracts for repair dispute so they’re the only carrier where you can’t use that dispute resolution so you’re at their mercy when it comes to repair if you have a policy with them and that is actively being fought about in front of legislation under HB.
Need a good shop in DFW? Request a free claim consultation and we’ll review your case and help you make great choices from the very beginning of your claim.
Reach out today if you’re dealing with storm damage on your vehicle and aren’t sure how to get help and we’ll tell you the truth!
Uninsured Motorist Hits and Runs: The Insurance Company’s Dodgy Diminished Value Denial
Today we are taking on a subject that can get quite convoluted and confusing. We want to talk about a current situation our customer is dealing with.
Ms. Fox’s troubles began when an uninsured motorist hit her vehicle and fled the scene, leaving her with significant damage. Seeking compensation, she filed a claim under her uninsured motorist (UM) coverage. However, a dispute over the cost of repairs forced her to use her collision coverage as the primary coverage so she could invoke the appraisal clause.
It seems like every other call or request we got this past two months has been a hail damage total loss claim or someone with a total loss that wanted to keep the wrecked vehicle. There are a lot of issues that come along with keeping the wrecked vehicle aka salvage and the first one may be with your very own carrier.
In our latest post, Justin discusses the issues our clients have dealt with when trying to retain their salvage.
Hail, Salvage Retention & the Appraisal Clause
After a vehicle crash or a damaging storm, if your insurance company deems your vehicle a total loss and makes you an offer to settle the value which you believe is low, you generally have the ability to use the appraisal provision of your policy to resolve the disputed value.
In its simplest form, the clause says that both you and your insurance company have to hire your own appraisers and agree to let the appraisers decide the value. This remedy to a low total loss settlement offer is also known as invoking the “appraisal clause”, or in some instances invoking the “right to appraisal”. It is a great way to resolve most disputed (first party) total loss settlements.
So that’s seems pretty straightforward, right?
If you disagree with your insurance carrier as to the settlement amount, you can invoke the appraisal clause to resolve the issue. You’d be right, it is pretty straightforward, but ONLY if you don’t want to keep and repair (or not if hail) your totaled vehicle, also known as retaining the salvage.
If you have the right to and elect to retain your total loss vehicle, then the insurance company will deduct from your settlement the salvage value of your vehicle. It should be as simple as that but things can get sticky fast.
Click below to read more of Justin’s in depth discussion on issues you may run into when trying to retain your salvage!
Diminished Value decreases a bit while Total Loss Values Soar!
Diminished Value Claim severity is dropping, while total loss settlement values are increasing! The effects of high demand on the automobile market.
As chip shortages and high demand for used vehicles continue, I’ve seen a couple of trends.
1. Minor to moderate accident histories on a vehicle are less damaging to the re-sale value than has been the case prior to approximately April 2021.
2. Most of the auto claim industry’s preferred vendors for market valuation reports haven’t caught up to the increased prices on used vehicle.
These two trends have dramatically affected the distribution of the percentage of cases we handle that are either total loss cases or diminished value cases. Specifically, a lot more people are seeking out our assistance for appraisal clause help because they believe they are getting a “low-ball” offer on their recently totaled vehicle. Spoiler. . . . they are normally right in their belief.
Although we are now doing more appraisal clause work than diminished value work, diminished value has not disappeared, nor has the increase in demand for used vehicles eliminated the potential for an economically viable pursuit for diminished value recovery.
What we’re seeing is that instead of the typical reduction (for a prior collision and repair history) of between 18% – 25% (depending on make/model/market), dealers and individuals are willing to bear a bit more risk and the deduction for a prior collision and repair history is not as severe in this current market of high demand.
Markets change.
Diminished value won’t be going away, but the severity of it is less right now due to Covid. On the other hand, total loss payouts are on the rise.
If you have questions or need more information regarding this subject, feel free to reach out to us and we’ll do our best to make sure you get the information or help you need. Both of our forms are below for a free consultation whether you have a DV claim or a Total Loss you want to talk about!
Have you had trouble getting your diminished value claim settled?
So did our client Kelly in San Mateo, CA so she hired us as her experts. She had a 2016 Audi Q3 2.0T Premium Plus with over $20K in damage after an accident that wasn’t her fault and, although it should have been totaled, the at-fault insurance carrier INSISTED it was repairable!
She submitted her $6100 DV claim and got the typical immediate denial.
Because California only requires $5K in property damage liability coverage, insurance companies COMMONLY attempt to use this denial / delay tactic…
Here’s how it works:
The responsible carrier will refuse to address the victim’s out-of-pocket damages (like Loss of Use and Diminished Value), arguing that the VICTIM’S insurance carrier needs to subrogate first.
If this happens, the victim almost never gets paid for Diminished Value. Since your own policy doesn’t cover diminished value, you MUST get it from the at-fault person’s carrier so the subrogation claim must wait until you recover your DV.
Otherwise, the subro claim could exhaust the limits of the at-fault party’s policy, leaving you empty-handed with no way to recover. The Made-Whole Doctrine exists to combat this inequity (search more about this topic on our blog).
Once she made everyone aware that she knew her rights, Kelly got the full Diminished Value settlement of $6100 and her insurance company was forced to wait on their subrogation claim.
Do you need a great expert appraiser to help with your diminished value auto claim?
You can get a FREE claim consultation today to talk about your claim with one of our experts!
Randy & Sue have a 2008 Lexus GS 350 that had $8500 in damages and was close to being totaled. They had no idea that they were owed money on TOP of the damages the other driver caused!
Thankfully, they knew an awesome body shop that they had used for years and multiple auto repairs and that awesome body shop knew how we helped on Diminished Value claims.
After getting our info, they signed up for a free claim consultation and got our help with an appraisal and our expert guidance through the process.
Randy & Sue fought for their diminished value loss and ended up settling for $2500!
Dear Ron (Shop owner),
First of all, thank you so much for the years of support and your extraordinary magic with our vehicle mishaps! You and your staff are “Awesome”!
When Sue picked up her GS 350 from the rear-end encounter, the quality work was superb, as always! Not to mention, you are a pleasure to do business with from every perspective, complimented by our insurance company as well.
We also would like to extend our sincere appreciation for introducing us to Justin Petty, an amazing Diminished Value expert who is very supportive.
With Justin’s guidance, we were able to obtain an equitable DV settlement from a very difficult insurance company! Another example of your pursuit of perfection and genuine concern for your customers’ welfare. We would have never known!!!
God Bless you and yours! – Randy & Sue
Lots of insurance companies will make up stories on why you aren’t owed diminished value….don’t listen to the naysayers! Talk to a REAL expert in this very niche field and get the truth you’ve been searching for.
If you’ve been in an auto accident that wasn’t your fault and YOUR awesome body shop doesn’t know the great work we’re doing, make sure to talk about the Petty Details of Diminished Value and how we can help!
Want to know if your diminished value claim is worth it?
Do you work at an awesome body shop and want to know more about our spectacular services?
Fill out the form below for a FREE consultation and find out how we can help YOU today!
Yulian G. lives in California 🌴 and has a 2016 Subaru WRX that sustained over $17K in damages.
He works at Yosemite National Park and, while he fought the wildfires, he was also fighting Mercury Insurance with a Diminished Value Appraisal from Petty Details to get his $7K auto claim paid. Guess what? He got it PAID IN FULL!
Hear straight from our raving fan – his email is below!
“Mercury Insurance sent me a settlement check in which the amount from your appraisal was included and paid in full!
I wanted you to know that, despite the complexity of this case, your services were ON POINT and you guys provided excellent customer service and expertise! I’m so glad that I listened to your advice!
Again, thank you so very much for your understanding, expertise, customer satisfaction and empathy. You’re a rare occasion in the business field today. I’ll make sure to highly recommend your business every chance I get! Come visit Yosemite anytime!”
Yulian G.
Want to be our next California diminished value success story?
Fill out the form below to get a FREE diminished value claim consultation today!
Do you own a high end vehicle like a Lamborghini, Mercedes, Cadillac, Infiniti, Bentley, Rolls Royse, Porsche, Maserati, BMW, Audi, Saab, Lexus or any other vehicle that is considered a luxury or exotic vehicle?
If so, you should certainly be thinking about diminished value if you were involved in a collision! You might not know the technical term for it but you know you’re gonna be put through the ringer when you go to trade that baby in and those are the FACTS!
No matter if you backed into a tree or if some negligent driver crashed into you, it is highly likely that your vehicle has lost value because of the simple fact that it was in an accident. Even if you took the vehicle to the best repair facility around, it doesn’t change the fact that your car was once wrecked.
Diminished value is a concept that has been around for nearly 90 years.
There is law relating to it in Georgia dating back to 1926!
If you’ve been in an accident in your luxury vehicle, what the heck can you do about it?
