Diminished value (was: [urq] Non urq content, but all(road) audi content)

[Jon Linkov]

Yes, there is apparently a "diminished value" claim that you can push for.

A member of the Potomac Chapter of the Audi Club NA posted the following
info. I don't endorse it, know if it is true/untrue, etc, etc...but here is
what he did in his claim.

Jon


http://autos.groups.yahoo.com/group/acna_pcc/message/1880

DIMINISHED VALUE CLAIMS: GET WHAT'S YOURS!


by Chris Ruckman (ruckman at e...)

So your cherished Audi got T-boned by some moron in a rustbucket Tercel,and
you heard that the insurance company might pay you hundreds or even
thousands of dollars for something called a "DV claim". Is it too good to be
true?

No, you heard it right. A diminished value insurance claim lets you recover
losses above and beyond the actual repair costs. It's uncommonly easy to
file and win a DV claim, but most drivers don't know they exist -- and
insurance agents don't suggest them for obvious reasons.

I originally wrote this article in 2002 based on my personal experiences
filing a DV claim on my Audi TT. Since then, I have walked several friends
through similar claims with happy results, so I'm glad to share my notes
with others who might benefit.

 Just what is a DV loss?
 -----------------------

Once your car has been wrecked, even the best body shop cannot restore the
car to its full before-accident value. Sure, the insurance company will
cover the repair bills, but your car will be worth less -- maybe a LOT less,
depending on the circumstances. That "diminished value" represents a loss to
you, and you have every right to be reimbursed for it.

How do I file a claim?
 ----------------------

In a nutshell, the procedure is: fix car, get car appraised, get paid.

Before you do anything, let the initial trauma of the accident subside!
There's no urgent need to make the DV claim right away. Relax, set up the
initial insurance claim for the repairs, and let the insurance companies
squabble over who was at fault.

Once you have established the repair claim and finished grieving over your
damaged car, you have two phone calls to make.

First, inform the insurance agent that you intend to file a DV claim. Not
all agents are familiar with them, so keep asking until you find someone who
is. You will eventually need to get your car appraised, so ask whether the
insurance company has any restrictions on who does the appraisal. They will
probably say that you may use any licensed appraiser.

Second, find an appraiser who has prior experience doing DV claims. Don't
make the appointment yet; just confirm that the appraiser is licensed and
has worked on DV claims before.

Once you make those initial phone calls, wait until AFTER the repairs have
been finished. Drive the car for a few days. Convince yourself that the
repairs are completely finished to your full satisfaction, and will not
require any return trips for follow-up repairs. Then, and only then, get the
appraisal done.

The result of the appraisal should be a certificate stating the amount of
the loss. Send a copy of the certificate to the insurance company, and they
should issue you a check with minimal fuss and bother. It is theoretically
possible that the insurance company might challenge your claim, but in my
experience a challenge is unlikely if you use a reputable appraiser.
Speaking of which ...

How do I find an appraiser?
 ---------------------------

Most body shops can recommend an appraiser. If you live in Virginia, you can
try the one I used:

 Lanny Blaine Insurance Appraisal Service
 PO Box 365, Catharpin, VA 20143
 703.754.1857 or 703.754.0453 (no email address)

Blaine was prompt, friendly and professional, and I recommend him highly. My
total cost was $188 including travel expenses, since he performed the
appraisal at my office in Alexandria.

How much money might I recover?
 -------------------------------

The dollar amount depends on three things: your car's value before the
accident, the extent of the damage, and the quality of the repairs.

As a rough guess, figure on recovering 7% of your car's before-accident
wholesale value. For example: My car's wholesale value before the accident
was $30,000. The appraiser estimated my DV loss as 7% of wholesale, or
$2100. That was how much Allstate gave me -- no questions asked. From other
cases I have seen, those numbers are typical.

The appraiser's estimate of 7% was based on two things: the extent of the
damage, and the quality of the repair work.

In my case, the cost of the repair was $6000 (20% of the wholesale value).
The repairs were done by Wagonwork, which is a top-notch shop that restored
the car fairly close to its original condition. If the damage had been more
extensive, or if the shop had botched the repairs, the loss might have been
greater than 7%. If the damage had been light or the shop had done
near-perfect repairs, the loss might have been less than 7%.

Note that your settlement probably will NOT include the cost of getting your
car appraised. That cost is easy to swallow if the DV settlement is a couple
grand. But if your car's wholesale value is only $5,000, a DV claim may not
be worth the effort since it would barely exceed the cost of the appraisal.

What other resources can I check?
 ---------------------------------

For another viewpoint, take a look at www.ClaimCoach.com. Apparently, you
can get a "free" estimate of how much a DV claim might be worth. (Take the
word "free" with a grain of salt, since most "free" services are aimed at
getting you to buy something.) You can also get a "Detailed Diminished Value
Report" for $59, but I'd check with the insurer first to make certain
they'll accept the report. I have never used this service, so I don't know
anything about it.


On 12/26/04 10:21 PM, "urq-request at audifans.com" <urq-request at audifans.com>
wrote:

> essage: 4
> Date: Thu, 9 Dec 2004 12:17:51 -0700
> From: "Jim Fleischer" <quattrotto at comcast.net>
>