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.
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!
Is Your Diminished Value Expert really an Expert, or just a good Salesman?
Over the years, I’ve seen multiple people who claim to be a “Diminished Value Expert” pop up and disappear. In fact, at least two of these purported experts have posed as customers or someone just pretending to want to collaborate with me, wanting me to help them “get into” doing diminished value claims. These people didn’t want to help; they wanted to make money off of something they thought was easy, and they wanted me to help them. They saw dollar signs, and they thought I could (or would) help them.
Fortunately, you can’t put nearly a quarter of a century of claims, litigation, and appraisal knowledge in their head to make them experts, no matter how bad they want to steal money from victims. When they couldn’t actually obtain my experience and knowledge without spending 23 plus years in the industry, they set out to steal my knowledge and began secretly copying my business model (I mean, some people are so lazy right?).
I kid you not, one of them told me (mind you, the only experience they had was what my informational website told them) that they will just fake it ‘til they make it, in so many words. It’s sad for me to admit, but indeed, they sell and market better than me. I seek truth and justice, not money. If you don’t believe me, ask my family. As of yet, I’m not rich (DAMNIT!), but I sleep well because I don’t make money my top priority. Many of my friends and family will tell you I’ve made stupid financial decisions. I agree. I don’t make decisions based on how much money the decision will make me. Don’t get me wrong, I don’t like being called stupid, but you know. . . Forrest Gump said it best, “Stupid is, as. . . “. You know the rest. I think it is stupid to trade your character for money. I have faith that the time I spend pouring my heart into this will continue to soothe my soul and pay my bills.
It’s very sad (and maddening) that accident victims and even some attorneys and insurance companies are fooled by marketing ploys (or maybe they enjoy the easy money it generates without regard to morals or ethics). Don’t get me wrong, great marketing is just that; great. But great marketing can’t have lies in it. I mean, I’m all for helping if you can, but if you can’t and only want money, don’t lie about being an expert and create disinformation and doubt as to what real experts are, you know? Damnit these guys piss me off. Experts don’t have to “sell” you. They really are experts, not salesmen or marketing specialists. I know, I know, one has to market, but not deceivingly, right?
Why I’m Writing This Blog
The “experts” that prompted this article and those that stole my time away from actual victims have now been in business for nearly two years (as of the time of this writing), and it’s solely because they mislead their potential customers with hype. They offer money back guarantees which causes the appraiser to have a financial interest in the claim. That’s not allowed for a real appraiser. Opposite of a true expert, they have never been challenged in court nor have they been vetted as an expert by somebody that actually IS an expert under the law.
These guys are the epitome of “fake it ‘til you make it”, but the problem is they will never make it, not really. They have to live with their lie. One can only fake being an expert until they meet a real expert. If you have an “expert” report from somebody you expect might be a scam artist (trust your gut), please send it to me and I will audit it for compliance with the actual appraisal standards that legally apply and help you get a refund from the crook. And, if it’s a real appraisal, then wow! I’ll probably seek that appraiser out as business partner!
If a report says it is compliant with the USPAP (UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE), send it to me for verification, please! I will audit it for compliance and provide you with a report detailing the shortcomings to help you try to get your money back from the scam artist that fooled you (don’t be ashamed; attorneys, insurance companies and even Judges fall for fake experts all of the time).
The USPAP is the authority on appraisal standards in the U.S. I found this out in 1998 while researching a diminished value report from a fake expert. I exposed that very few “auto appraisers” actually used any appraisal standard, much less the formal standard approved by Congress in 1989.
Over 23 years of experience with auto claims best practices, appraisal and claims auditing, and genuinely applying real, legal, appraisal standards have astoundingly resulted in me finding VERY FEW expert appraisals that would pass a cross examination by me or any of the attorneys I work with, much less meet the actual legal standards for expert appraisals.
Need An Example?
Here’s a point in case; there is this “expert” who has been on the news, and fooled attorneys and judges into believing he is a real expert appraiser. It took a while, but eventually, he had to deal with me in an actual court case and ended up being deposed by a very diligent attorney. The attorney exposed that this expert certified himself and made up a “certification” program for “appraisers”. In fact, he admitted that he and a friend (neither of which had any experience with formal appraisal standards or litigation involving appraisals) certified themselves in a garage (and he was proud of that!). He could not intelligently answer questions about the formal appraising standards that are approved by Congress that he purported to use (his appraisal contained certifications that he abided by the rules LOL).
He even admitted that he wrote appraisals for himself and certified them that he had no interest in the property, UNDER OATH! He didn’t even know the section of the formal appraisal standards guide that applied to his purported expertise. No joke! This was in a formal deposition, and it was brutal (call me and ask for a copy of the depo, it’s public record). The claim settled after the deposition for very close to the amount that the real appraisal I produced reflected.
His program and certification are impossible to take as anything other than a joke if you have even cursory knowledge of the law regarding experts and the field of appraising value (not the same as damage “appraisers”; they are actually estimators of repair cost, not value). Truly. I have a copy of one of the “exams” he uses, and my young son could easily answer every question just based on the ridiculous answer selections. Because it is a multiple-choice test, all of the choices except the right answer are totally silly and clearly meant to ensure a passing grade. Here’s an actual example from the “test”:
#4. What instrument measures and registers the miles and tenths of miles the vehicle has been driven?
A. Odometer
B. Sychronizer
C. Tachometer
D. None of the above
No joke, that is a real question from the real test of the BOCAA (explained better a little below). Seriously, if you want a good laugh, just give me a call and I’ll share some of the other ridiculous test questions. Trust me, it would be hard to fail the BOCAA test. You can doooo it! if you want to be a fake expert appraiser, call jack of all trades, Roy Bent, and then hope I’m not on the opposing side at any trial, lol!
I want to stress that I have not altered anything or added or subtracted from the example question I presented. It is the exact question with the multiple-choice answers in the right order. Somebody that failed the BOCAA test (or even passed it, lol), would not be allowed to sweep my kitchen floor. I’m truly not sure that a smart Border Collie couldn’t pass it. It is seriously a ridiculous joke.
This “expert” makes money by marketing for diminished value on the internet and by “certifying” anybody that wants to pay him $500.00 as a full-fledged expert appraiser. His arrogance, sheer guile, and the way he revels in bullshitting and “getting over” on people is disgusting. I don’t market by hyping bull. Don’t get me wrong, I market, but I do it by providing truly relevant information, and actually knowing how to address the complicated issues that can arise in the course of a damage dispute (not to mention actually following real appraisal standards). I hope this article helps to prove that.
Back to this faker. . .
This guy is bold enough to try his luck in court, and he has unbelievably gotten away with it more than once (that train will come to the end of its tracks). He calls his association and certification the BOCAA (Bureau of Certified Auto Appraisers). Sadly, even some actual appraisers have been fooled into getting his certification. If you want to see how much of an expert the guy who is certifying these people really is, I again offer to provide you with the full transcript of the deposition that he got dragged into. It is a ridiculous, yet astounding, display of ignorance and willful deceit. His expertise is talking BS, and he’s proud of it. That’s it, point blank.
For insurance adjusters faced with a suspected fake appraisal, I’m a friend. Send the report to my office for a formal audit to expose the fraud. I’ve been a witness in court on both sides of the fence (for victims and for insurance companies).
Unfortunately, these frauds end up making some money by hyping up the idea of easy money to victims, and easy low settlements for carriers. Then they spew out the few lucky successes they’ve had, pay for good reviews, and hang their hat on the cases where they weren’t challenged. They use the few successes to lure new victims while forgetting about and ignoring the customers who have already been tricked into paying for their worthless report. They rely solely on their sales and marketing tactics to bring in new unsuspecting customers, but when the rubber meets the asphalt and the curtain is pulled back, they immediately cave-in and slink away as if nothing happened. One of them even had the nerve to ask me to take over cases that were “hard” when the carrier called them out! Sickening!
The best experts are the ones that don’t have to sell themselves. Ask around a LOT. Look for the truth. Don’t believe an internet salesperson that tells you they are an expert appraiser, not even if they claim to have a fancy certification or slick website. Ask them to do a conference call with you and me so you can evaluate their expertise and ask the right questions. I’ll bet they refuse. Look at their ACTUAL experience, education, and training (get a copy of their CV). Many of these fly-by-night experts even lie on their CV’s. These people will take your money and then tell you that you need an attorney and are on your own when the insurance company laughs at them. These scam artists will claim to have attorneys that use them and handle these cases, but mark my words, the attorneys that they claim to use are personal injury attorneys who do not actually handle the diminished value only cases. With an injury case, the attorney knows that if they tack on a fake/inflated DV claim, it can add some money to the bottom line because they can use the additional alleged DV damage to bolster the injury claim. Guess what? If you have an injury claim and an attorney, and if you qualify for DV, you’ll get some diminished value (but your injury settlement will be that much less). The insurance company sometimes throws a bit of diminished value money at these cases to get the injury settled without a suit. It’s pure economics, not because of a fake DV report. If you don’t have an injury, you’ll have a hard time finding an attorney to take on your DV claim.
If that’s the case for you and you only have a DV claim and no injury, then you’re not much of a threat to an insurance carrier. Insurance companies aren’t stupid. They know who the threats in the DV game are. They round table these claims and know which experts have good attorneys that will litigate just the property damage. There are very few real threats in the diminished value/auto appraisal arena.
What The “Experts” Will Tell You
Okay, so some people might be thinking that you can get any old report and just go to small claims court. You’d be right – and what other “experts” will tell you is that once you sue, the insurance company will “99%” of the time, settle. Don’t believe it! I’ve personally litigated 1000’s of small claims cases (as a claims recovery expert for insurance companies) and many of my customers try the pro-se small claims route. A large majority of the time, if you are pro-se (don’t have an attorney), the insurance company WILL show up and defend the claim, and they normally win. This is because they have practice arguing against these claims in court. No matter how smart I am or how much I try to teach you, you’ll either be up against an attorney or insurance company representative, and they’ll have more experience arguing these cases than you do and they know the rules of court better. The Judge probably knows them. Even with an impeccable appraisal from a real expert, it’s simply not possible to teach a person how to present the information persuasively, manage discovery, direct examine and cross examine witnesses, or understand voir dire or motions in limine, or on, and on, and on. I just can’t make a person an expert small claims litigator in the course of two or three months (which is the average time it takes for a stubborn claim to get from demand to settlement or suit).
As of the time of this article, it is still HIGHLY economical for an insurance company to just refuse to pay (or offer a super low amount) and then let you try your luck in court. So few people are successful without an attorney that it is cheaper for carriers to just go to court and try their luck than it is to pay every Joe that demands a diminished value settlement. Did you know that most insurance companies have an attorney on staff or retainer to deal with this? That means they don’t spend any attorney’s fees, they just have an attorney who is on a salary or under contract and who will happily take on the trial experience! These defense attorneys love handing people who have fake experts their asses. You can be sure attorneys that will sue (and can win) just for diminished value are few and far between, and they pick their experts carefully.
Don’t hire a salesman. Seek out a true expert.
Together we can rid the DV market of these dishonest imposters and reduce (maybe one day eliminate altogether) the rip-off’s. DV is meant to help good people when accidents happen, not leave them high and dry with a sour taste in their mouth.
If you’re one of these fake experts, you can bet the truth will catch up to you if you continue to play in my sandbox as a crook. As nice as I am, I’m no pushover. I will not tolerate a bully, a snob, or a crook. I’m gonna make sure fake experts have to continue to worry about me and the other legitimate experts, exposing them.
In the words of Edmund Burke: “The only thing necessary for the triumph of evil is for good men to do nothing.”
I will not let evil triumph.
Call us at 214-227-2154 and see if you can’t tell that we are the real deal.
What is the difference between an adjuster, an estimator and an appraiser?
This is a commonly confusing topic that Justin constantly has to clarify for people inside and outside of the insurance industry.
You would think it would be fairly simple to distinguish the difference but the insurance industry blurs the lines on this topic and fails to train their employees on the very important difference between these three positions.
Justin is setting the record straight today in an article he previously published on LinkedIn that we thought was worthy of posting here again on our site.
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!
Tom lives in Oklahoma and had a 2017 Mazda Mazda3 Grand Touring with $12,400 in damages. He got our expert help with a diminished value auto appraisal and settled his auto claim for $3750!
Help from Petty Details is the real deal – whether you’re an accident victim, attorney or paralegal from a law firm, an adjuster, or a body shop, you and your clients can get help from the pro’s at Petty Details on your diminished value claim!
Want a FREE claim consultation?
Fill out the form below to find out if you could be our next success story….
If you’re getting a less than fair offer and being given some fake excuse why they won’t pay or being told “take it or leave it” on your low value diminished value or total loss claim ($3500 or less and damages are not your fault), then you have a tough realization to come to.
That realization is that you CANNOT obtain justice.
No joke, you can’t win unless you ignore the economics of it and define justice solely as having your day in court and winning.
Let me say it again. . .
Unless you spend the majority of the $3500.00, YOU CANNOT OBTAIN JUSTICE if you have suffered $3500.00 or less in property damages like diminished value or a total loss and the person responsible, or their insurance company, is refusing to pay for the full amount of damages.
Ever so often, an insurance carrier or at fault person will surprise me and simply pay for what they owe, but most of the time, they let their insurance company deny payment, or they personally refuse to pay for the full amount of damages. That nothing can be done is so hard for people to accept / believe that victims refuse to believe it and constantly attempt to convince me that I am wrong and that if I will just help them, they will prove they can get justice.
Questions you need answers to!
Below I have listed the 10 most common arguments / questions I hear when I tell victims that their claim is a lost cause, and then below that, I have listed the answers I give them. . . .
1. No way, that’s why we have a legal system, there has got to be something I can do, right?
2. You mean to tell me that the insurance company can just get away with not paying?
3. Isn’t it illegal for them to deny my claim?
4. Won’t the department of insurance help me?
5. That ain’t right! I’m gonna call a better expert – do you know anybody?
6. Well, I am going to sue the insurance company immediately, can you send me information on small claims court?
7. Fine, if you won’t help, then can you refer me to an attorney?
8. If I spend the money to fight and I win, the other side will have to pay back my attorneys fees and costs, right?
9. Whatever Justin, I will sue and get the insurance company in trouble for DTPA violations (deceptive trade practices), you didn’t think of that, did you?
10. I will get the media involved and expose this – that’ll work, right?
Want to hear the truth bombs from an expert??
Click below to find the answers to all of these questions and more!
