QuestionI was in an auto accident Feb. 1, 2010. It was front end damage which ended up costing $6585 in repairs. There was four hours of frame work completed on the unibody. All has been repaired, and I am awaiting diminished value. I've been to several dealerships for trade in quotes all suggesting around $1500 in value loss. NADA clean retail has my car valued at $10250. Dealerships will only pay under wholesale because of the frame damage. Wholesale price is $8500. I HATE the 17C formula because I do not feel it addresses complete loss in my accident I wasn't at fault for. What are my options? Thanks.
AnswerHi Cary,
The 17C formula is not recognized by anyone other than insurance companies. Neither the courts nor the state insurance commissioners office has upheld its use. The 17C formula was developed by insurance companies for the sole purpose of low-balling diminished value claims.
Once you have received an offer based on the 17C formula, it is up to you to prove it wrong. Unfortunately, information from a car dealer is not going to work. Although car dealers appraise vehicles for their own purposes every day, they are not professional independent appraisers. Their opionions are looked upon as being biased and profit motivated.
There is a specific process to handling a diminished value claim.
Step 1: Proof of Loss
The 1st step in the diminished value claim process is to be able to prove your loss. This can only be done by hiring a diminished value expert. The determination of the amount of value a vehicle has lost can only be assessed by an experienced appraiser knowledgeable in collision damage analysis, vehicle markets and what happens to vehicles with a damage history in those markets. Only an independent, unbiased appraisal will provide the necessary documentation to determine the diminished value of your car, light truck or SUV.
Step 2: Submission of your claim to the responsible party
Once you have established the amount of your vehicle's diminished value and have your proof of loss, you need to submit that proof with a formal demand for payment letter. Your demand letter along with your proof of loss documents should be sent to the responsible party by certified mail/return receipt requested. This will provide you with proof that you sent it and will also provide proof that they received it when you receive the delivery receipt with their signature.
Step 3: Settlement of Your Claim
Once you have submitted your demand letter along with your proof of loss by certified mail/return receipt requested, you will then wait for a reply. The reply will be either payment in full, or they will try to negotiate down the amount of your demand. There are many tactics used to do this including to try to refute your documentation, to offer some other evidence that the loss is much lower than your demand, to hire their own "independent appraiser", and in some cases they may even deny your claim outright stating they do not owe for diminished value since the vehicle was repaired properly. The key is being properly prepared to respond to any or all of these situations. In the end, if a reasonable settlement can not be reached, your final recourse would be to file a law suit against the responsible party, however this rarely occurs.
To learn more about diminished value claims in Georgia visit www.collisionclaims.com
I hope this helps
Richard Hixenbaugh
