In every claim I have ever handled where the vehicle was a total loss and had a salvage / rebuilt title, I was instructed to deduct 50% of it’s pre-accident value to account for the salvage / rebuilt status. Also, when I was handling claims for insurance companies, I was routinely told that diminished value did not exist and to simply deny paying for it.
If asked, the main reason for denial was because it was a “stigma” claim, for which we did not legally owe (which was a lie). The next best denial reason was that unless the vehicle sold for a loss due to the repair history, the claim was “unrealized” and there was no claim (also a lie).
Just think about that for a minute if you’re an adjuster. Are you not instructed to deduct 40 – 60 % of the value on a total loss settlement if the vehicle had a salvage or rebuilt title? And are you not instructed to refuse to pay diminished value on vehicles that are repairable? Do you know the law about the matter? I do.
The fact of the matter is that in most cases, if a vehicle has any substantial value, then if damaged and repaired, it will suffer lost market value due to stigma. If your damages were due to another person’s negligence, then their liability insurance company will ultimately have to settle the claim for them if you sue the person.
How is stigma loss documented and how do you sue?
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