First of all , I want to inform you that I am not a Lawyer , if you are seeking legal advice ,please

contact a Law Firm.  I am not a lawyer nor do I play one on TV . The information on this site is for educational purposes only .

Many Texans do not realize that if they were inolved in a NOT - at - FAULT accident , they could be elgible for a Diminished in Value Claim.

The technical term is actually Diminution in Value  ( who ever really says that ?) or Diminished Value , I prefer Diminished in Value . Sounds so much better !

Anyhow , from here on  DIV will stand for Diminished in Value.  DIV is the  difference between the auto's fair market value immediatley before the accident  and its market value after repairs have been made.

Some Insurance companies will advise the insured that they are eligible for  DIV , then make  a "low ball" offer. Most insured will not challenge that offer and accept the Insurance companie's offer.  OR the Insurance company will not even advise the insured they are eligible.  OR the Insurance company will say that there is no value in the vehicle since it is over 100K miles. ( I have found that  , that can be challenged by invoking the Right to an Appraisal Clause ) .   The  first DIV report I wrote , the insured had over 100K miles on her vehicle. I got her $1200.00 from my DIV Report . 

Typically, the appraisal clause in your contract will state something like this:

“If you (the policyholder) and we (the insurance company) fail to agree on the amount of loss, then either party may demand an appraisal of the loss. In this situation, each party will hire a competent and neutral appraiser within 25 days of receiving a written request from the other. 

There are 3 types of Diminished in Value Claims:

• Inherent DIV  -Refers to the vehicle’s resale value immediately after repairs from an accident. Even if the car was repaired back to factory specifications, the accident history decreases its value and limits its marketability to potential buyers. Inherent diminished value is the most common type of diminished value claim.
• Repair-related DIV  – refers to substandard repairs on your car, which may further reduce your car’s value, such as substandard parts, improper fitment, refinish concerns, etc. This form of diminished value often falls on the responsibility of the repairer and reinforces the importance of finding a reputable collision shop.
• Immediate  DIV  – This type of claim refers to the resale value immediately after your car is involved in an accident before it gets repaired. 

 **** I only handle Inherent DIV  Claims , were the accident happened in TEXAS ****

Inherent , or psychological DIV  is the loss in value a vehicle suffers merely by disclosing repaired collision damage to a potential buyer . For instance , say you have two identical vehicles for sale and you disclose to the buyer that one of the vehicles has been involved in an accident and repaired . All else being equal the buyer will always choose  the undamaged vehicle , even if the repairs were done perfectly to the damaged car . You would have to offer an incentive to the buyer , in the form of a discounted price to get the buyer to chose the damaged and repaired vehicle over the undamaged vehicle. Even with perfect , undetectable repairs , the psychological impact of knowing a vehicle has been in an accident lowers the value of that vehicle in the buyers mind.

Hope this helps!

MR. DEE