After your vehicle has been involved in an accident, you will most probably focus only on repairs and filing an insurance claim. However, what many people don’t realize is that a collision often reduces a car’s market value—even after it has been fully repaired. The insurance company can undervalue the vehicle even further and give you a low, unfair claim settlement amount.
At ADR-Claims, we specialize in providing each car owner with an accurate diminished value appraisal in Southern Oregon. Our detailed and unbiased reports help vehicle owners present strong evidence during insurance claim negotiations, ensuring they receive a fair settlement for the loss in their vehicle’s value.
When your car meets with an accident, its market value immediately drops. The reduced market value is the diminished value. For a better understanding, suppose your $100,000 car's price reduces to $63,000 after a collision; then the difference of $37,000 is the diminished value.
Depending on the vehicle's condition after an accident, it has different values. These are categorized into 3 different diminished values. Let’s scroll down and learn about all these types of diminished values.
The moment your car is involved in an accident, its market value drops. This reduction is the immediate diminished value. In simple terms, it's the difference between your car’s market value immediately before and after the accident. If your vehicle is worth $100,000, and its value drops to $63,000; then the remaining $37,000 is the immediate diminished value.
Once your car has been in an accident, its market value is never the same, even after it's repaired to factory-fresh condition. It is because the vehicle now has an accident history.
The difference in your car’s market value before the accident and after being repaired is its inherent diminished value. So, if your vehicle was worth $100,000 and is worth $70,000 after repairs, the remaining $30,000 is its inherent diminished value.
You certainly have learned that a car’s market value drops after an accident. What many people don’t know is that repairing a damaged vehicle with poor-quality parts further drops its market value. If your $100,000 car is worth $63,000 immediately after an accident, its value might drop to $55,000 after repair.
Repair-related diminished value is the difference between your car’s pre-accident value and the price after being repaired with poor-quality parts. So, the repair-related diminished value will be $45,000.
A diminished value appraisal is a professional assessment of your car to determine the vehicle’s lost market value after it’s damaged. A certified appraiser performs the appraisal process and provides you with a detailed report, including the car’s diminished value. They check the car’s documents, including the RC and repair invoices, to determine the lost value.
Can you tell what a professional diminished value appraisal report includes? You can’t, especially if it’s your first time filing a diminished value claim. Here’s what the report will include:
When filing diminished value claims in Southern Oregon, you can use the appraisal report. But can you tell how the appraisal helps to get a fair payout? If not, let’s find out.
A simple appraisal turns your claim into a documented, data-driven case. It’s tough for insurance adjusters to dispute a certified report that complies with industry standards, like the USPAP (Uniform Standards of Professional Appraisal Practice).
Generally, insurance companies use their internal formulas to offer lower payouts. In this situation, an independent appraisal provides you with a realistic, market-based value, enabling you to counter their low offer efficiently and negotiate a fairer settlement.
The appraisal explicitly calculates the diminished value of your car using comparable market data, like sale listings for similar, undamaged vehicles. It directly addresses the result of an accident history, which is the actual reason for financial loss and the basis for most claims.
The appraiser gathers and packages all relevant evidence, including the police report, final repair invoices, and photographs of damage, into a professional demand letter. This well-organized document clearly outlines your seriousness about the claim and that you understand your rights.
A certified appraisal report serves as an expert testimony for complex cases, high-value vehicles, or when the insurer is not cooperating.
Filing a diminished value claim and obtaining a fair settlement is no piece of cake. We understand this and have shared steps to help you navigate the process.
First, learn if you can really file a claim. Generally, a car owner is allowed to file a claim if another driver was at fault. If your insurance company allows, you can also file the claim under your own motorist coverage.
Gather all relevant documents, like the police report, final repair invoices and estimates, photos of the damage, etc.
Hire an independent appraiser, get your car evaluated, and obtain a detailed appraisal report including the diminished value of your vehicle.
Collect and organize all the documents. Then, prepare a formal demand letter and send it to the at-fault driver’s insurance company.
When the insurance adjuster offers a payout, accept it if you are satisfied or negotiate for a fairer settlement. If they refuse a higher payout, hire an attorney.
We are ADR Claims, a team of professional appraisers, helping car owners get fair settlements with our accurate appraisals. If you need a diminished value appraisal in Southern Oregon for your claim, we can provide you with a detailed and market-supported report. We will also guide you throughout the settlement process. Contact us and book your consultation right now.
Our quick and simple appraisal process can help you recoup vehicle-related losses.
