~ Some Honest Answers . . . Some Good Advice ~
From 30 Years Diminished Value Experience

What Really is Diminished Value ?
You've been in an auto accident - You now have a claim for collision damage - You may also have a claim for Diminished Value - Diminished Value is the amount by which the resale value of a damaged (or damage repaired) vehicle has been reduced for having a significant damage history. There are actually three (3) broadly accepted types of Diminished Value . . .

1. Immediate Diminished Value is the difference in resale value of a vehicle immediately before damage has occurred and immediately after damage has occurred (prior to repair). Most jurisdictions (courts) will use this standard as the primary measure of damage when courts are employed to seek reimbursement for damage from a negligent party. As courts are rarely the chosen venue for recovery of property damage, the standard of “Immediate Diminished Value” is rarely employed in resolving Diminished Value Claims . . .
   
   
2. Inherent Diminished Value assumes optimal repair quality has been achieved and is defined as the amount by which the resale value of a repaired vehicle has been reduced simply because the subject vehicle now has a significant damage history. “Inherent Diminished Value” is the most widely recognized and accepted form of Diminished Value. It is also the basis upon which any supplemental form of Diminished Value would be added. A common “Supplemental” form of Diminished Value is “Repair Related Diminished Value” . . .
   
   
3. Repair Related Diminished Value includes any additional amounts by which the resale value of a subject vehicle may be further reduced because of less-than-optimal repairs. This could include anything from minor cosmetic imperfections to major structural defects.

Has My Vehicle Suffered a Diminished Value ?
The only blanket answer here would have to be “Yes” ~ “No” ~ or “Maybe”. The newer the subject vehicle, in better pre-loss condition, with no significant prior damage history, with significant current damage - the more resounding the “Yes” answer becomes . . . The older the subject vehicle, in lesser pre-loss condition, with a significant prior damage history and minor current damage - the more deafening is the “No” answer . . . The more circumstances moderate between these two extremes the more your true answer will fluctuate !


How Do I Know for Sure ?
Reasonable people can apply common sense to the “Yes” ~ “No” ~ “Maybe” guidelines referenced above to arrive at a reasonable degree of probability. The greater the probability, the more justified it becomes to call upon a Diminished Value Professional to counsel you further …OR …

You can request a FREE Inherent Diminished Value “Estimate” to help you evaluate whether you should pursue a Diminished Value claim.


How Do I Find a Diminished Value Professional ?
This question actually has the potential for more Problems than one might first imagine. Over the past few years, the pool of diminished value “Appraisers” has mushroomed out of control. The insurance industry even seems to be underwriting some of the Late Entries in an effort to Minimize Payments on Diminished Value Claims.

Our founder (J.D.Howard) helped pioneer this field of specialty in 1987. Over the years we have helped establish, train and/or create lines of communication with, other legitimate professionals around the country. Those professional service providers whom we respect are listed here for your consideration. Please visit our D/V Professionals list.


How Do I Collect Diminished Value ?
It is universally acknowledged, in every state, that Diminished Value is owed by the liable (at-fault) party that caused the Diminished Value damage. If the liability insurance carrier for the at-fault party owes for repairing your damaged vehicle, they owe for the Diminished Value as well - It’s just that simple !

While it has been universally accepted that Diminished Value is owed to not-at-fault victims (3rd party claimants), courts are generally taking the position that insurance companies do Not owe Diminished Value damages to their own insureds under their policy’s Collision or Comprehensive coverages. However, there are three states where insurance companies Do owe Diminished Value to their own policyholders – Georgia, Kansas and North Carolina . . .

Georgia’s Supreme Court, in the matter of “Mabry vs State Farm”, has determined that Collision and/or Comprehensive coverage written in Georgia DOES cover Diminished Value for their own policyholders. As part of that determination, the Georgia Court directed State Farm to develop a method by which Diminished Value could be measured. State Farm came up with a Low-Ball method for measuring Diminished Value, to which the court gave only Limited Approval.  This Low-Ball methodology is known as "Rule 17c". When you negotiate your Diminished Value claim with an insurance company, they may well tell you the method for measuring Diminished Value has been “Ordered” by the Georgia Supreme Court. That is not quite true.

Rule 17c is actually the court “Approved” (fall-back) method of measuring Diminished Value in the absence of any other documented measure of damage. A Diminished Value Report received from iCan, or any of our D/V Professionals, is a Documented Measure of Damage that prevails over the Rule 17c method.

UPDATE . . .
There are now some recent entrants into the Diminished Value arena offering to collect Diminished Value for consumers on a contingency fee (percentage of what they collect) basis. While we initially welcomed them into the Consumer Advocacy effort, we are now finding out such services are simply collecting Diminished Value based upon the Rule 17c formula (what the insurance company is already willing to pay) and then taking a portion of your money for having simply provided clerical services.

NOTICE . . .
IF you choose to pursue the “Contingency Fee” avenue, you will most likely Net Less than if you negotiated with the insurance company directly - AND - IF you go that route, you may be waiving your opportunity to deduct the remainder of your “Unrecovered Casualty Loss” from your income taxes.

If you are a resident of Georgia, Kansas or North Carolina, and your own insurance company is not being reasonable as to the amount of your Diminished Value claim, you can resolve the dispute by exercising your policy right of “Appraisal” - (go to our Settle Auto Insurance Claims text and pay particular attention to Discussion topic # 11 to read about you rights under the “Appraisal” clause of your policy).

If this is an issue (and you have Collision coverage available to you) we can show you how to Blend these Two Resources to increase your opportunity to be Made Whole. Under the Federal "Make Whole" doctrine, your Right to be Made Whole is superior to your insurance company’s right of subrogation.

However, timely action is required to perfect Your Rights under the "Make Whole" doctrine. The sooner you get iCan involved in your Diminished Value Claim, the less likely Policy Limit Issues will "Short Change" your recovery.

What if the Insurance Company Won't Deal in Good Faith ?
If the insurance company tries to deny your Diminished Value [or] acknowledges they owe for your Diminished Value, but resist the Full Dollar amount, you actually have Several Options . . .

The Inherent Diminished Value Report, you can order direct from iCan, will explain those options. Our free follow-up Tech Support and/or Legal Support will help you Collect.

An iCan Inherent Diminished Value Report empowers consumers with options. You can use our report to Collect Fully from your own insurance company (Georgia & Kansas) [or] Collect from the at-fault party’s insurance company [or] Reduce your income tax liability [or] Blend your options !

Income Tax Deduction ? ? ?
Yes - IF you itemize your deductions, use Line # 19 of Form 1040 - Schedule “A” to Deduct your unrecovered Diminished Value. Assuming you have an unrecovered Diminished Value of $ 2,000 and a tax rate of 20%, you can Reduce Your Tax Obligation by almost $ 400.00 - well more than the cost of the Diminished Value report itself - You can even Deduct the Cost of the Diminished Value Report on Line # 22 of Schedule “A”.

Review IRS Form 1040 - Schedule “A” and Form # 4684 with your tax advisor.

How Do I Get a Diminished Value Report ?
Most of our discussion here has dealt with the issue of Money. While important, we consider SAFETY to be Much More Important! Not only are we concerned about the future occupants of your vehicle but, we are equally concerned about the occupants of all the other vehicles with whom your repaired vehicle will be sharing the road.

All of the D/V Professionals listed with iCan are experienced collision repair experts. They can inspect your repaired vehicle to evaluate multiple Safety and Reliability factors. They are qualified to evaluate both “Inherent Diminished Value” and “Repair Related Diminished Value” so as to provide a fully comprehensive report. Go to D/V Professionals to see who may be listed in your area.

If there is no listing for your area (we are picky about who we accept), plan on having your vehicle checked out by a mechanic you can trust and Order Direct from iCan to receive our “Inherent Diminished Value” report.