The Actual Cash Value Policy does not insure the property itself but the VALUE of the property. When the insurance company chooses to 'Repair' the damaged insured property such an election DOES NOT relieve that insurance company of their contractual duty to restore the Pre-Loss VALUE of the motor vehicle. To whatever extent such repair's fail to restore that motor vehicles Pre-Loss VALUE , should be tendered to the policyholder in cash . This is rarely done however the failure to do so is nothing less than insurer fraud!
Items are sometimes repaired improperly or overlooked completely. Several of these typical repair related items could be: Poor quality repairs, improper welding, or flawed refinish operations.
'Diminished Value' is clearly owed and if a vehicle has not been brought back to it?s pre-accident function, appearance, safety, and value.
THERE ARE THREE BASIC TYPES OF DIMINISHED VALUE
#1. Inherent Diminished Value: This is the automatic and unavoidable loss of market value simply due to the fact than a motor vehicle has been involved in an accident. It many cases it's mandatory that previous damage is made known to a prospective buyer.
#2. Insurance Related Diminished Value: This comes to pass due to oversights or omissions by the insurance company on their appraisal. And also, because of the use of 'Imitation Replacement' parts.
#3. Repair Related Diminished Value: This is the amount which the motor vehicle was depreciated due to improper or incomplete repairs, poor quality repairs, and/or un-repaired items that were compensated for within the insurance appraisal.
Auto repair shops (even the most advanced) do not have access to that type of equipment and so it's impossible for them to afford such technology that a manufacturer can.
What is Dan talking about here' The answer to that one is very simple: "You're not going to be returned your car in the absolutely perfect value it was when it came off the assembly line"!
It's a fact of life that should a potential buyer discover the motor vehicle one is about to buy has been in an accident that it's going to be worth less money. Because of that almost every damaged motor vehicle will have some possible inherent 'Diminished Value' which can evolve into an actual loss to the consumer. This loss is owed by the insurer (due to their alleged promise in which they?ve implied to their insured within the confines of their insurance contact with them) that would be made ?Whole?.
PLUS THERE ARE MANY OTHER 'REPAIR PROBLEMS'. (The following are 4 of the most potential just bubbling and boiling - - under the surface):
#1. Most consumer's don't know what kind of parts they're getting. They assume their motor vehicle will be restored to its pre-crash condition.
#2. Too often the "Imitation Parts" don't match the car?s contours leaving an all too often impossible mess to correct.
#3. When it comes to fenders there are "Fit Problems". Some require widening the holes or using shims. Many don;t match the contour of the car and require significant reworking.
#4. Replacement bumpers often need to be re-drilled or widened leaving large gaps or uneven surfaces.
DISCLAIMER: This article "YOUR CARS AFTER-IMPACT DIMINISHED VALUE" is intended for background information only. Its purpose is not to make any guarantee of any kind whatsoever. Dan Baldyga, NOR Car Junky Web Team purport to engage in rendering any professional or legal advice, substitute for a lawyer, an insurance adjuster,claims adjuster, or the like. Where such professional help is desired IT IS THE INDIVIDUAL'S RESPONSIBILITY to obtain it.
Dan Baldyga's third and latest book, AUTO ACCIDENT PERSONAL INJURY INSURANCE CLAIM (How To Evaluate And Settle Your Loss) can be found on the internet at http://www.caraccidentclaims.com or http://www.autoaccidentclaims.com. This book reveals ?How To? successfully handle your motor vehicle accident claim so you won?t be taken advantage of. It also goes into detail regarding the revolutionary BASE (The Baldyga Auto Accident Settlement Evaluation Formula). THE BASE FORMULA explains how to determine the value of the "Pain and Suffering" you endured - - because of your personal injury.
Copyright (c) 2005 By Daniel G. Baldyga. All Rights Reserved
Dan Baldyga - Author
dbpaw@comcast.net
FAX: 1 (413) 731 8358
AUTO ACCIDENT PERSONAL INJURY INSURANCE CLAIM
(How To Evaluate And Settle Your Loss)
http://www.autoaccidentclaims.com Or:
http://www.caraccidentclaims.com
