North Carolina Diminished Value Claim
It is universally accepted that in every state Diminished Value is owed to the claimant by the at fault party. In North Carolina, the insurance companies owe Diminished Value to their policyholders as well. Recently, North Carolina has mandated that automobile appraisers become licensed to complete Diminished Value and Total Loss Appraisals. Autoloss became licensed to complete Diminished Value and Total Loss appraisals in 2008 in North Carolina.
Diminished Value in North Carolina
When an individual is in an accident and the loss is greater than 25% of the value of the vehicle, North Carolina Damage Disclosure Statue 20-71.4 states that any such damage must be disclosed to the potential buyer… Why this is important is that potentially the individual is entitled to a diminished value check. Also, even if the wreck is less substantial the individual will have significant legal exposure if the individual re-sells the vehicle and does not disclose the prior damage to the new vehicle owner, if the new owner asks about previous damage. Also, the following case law is pertinent to North Carolina:
- In Parker v. Hensley, 625 S.E.2d 182 (N.C.App. 02/07/2006) in a case arguing about an award of attorneys fees allowed for recovery of diminution in value of the vehicle in question.
- In Pierce v. American Fidelity Fire Insurance Co., 240 N.C. 567, 83 S.E.2d 493 (N.C. 09/22/1954) the Supreme Court of North Carolina found that the measure of damages is the fair market value of the car immediately before the collision and the fair market value after the accident.
A large part of the North Carolina population is unaware they are entitled to a diminished value check in addition to the repairs on their vehicle. Autoloss is a professional Automobile Appraisal Company and call today at 877-655-1661 to see if you qualify for a diminished value check.
About Diminished Value Claims
Diminished Value refers to the reduced value of a vehicle simply because it has a significant damage history. Even after the vehicle has been repaired to it’s optimal value, the market value of the vehicle may still be reduced. There are three types of diminished value that your case may fall under:
1. Inherent Diminished Value: This type of diminished value refers to the loss of value of a vehicle simply because it has been in accident. Even after the vehicle has been fully repaired, it may still be considered less valuable than a car that has no accident history. This type of diminished value is the most common and most highly accepted.
2. Repair-Related Diminished Value: A vehicle that experienced an accident and was not repaired properly may experience repair-related diminished value. Whether the car still has cosmetic damages or structural damages, it may experience loss in value due to incomplete repairs.
3. Immediate Diminished Value: Right after a vehicle has experienced an accident, it may lose value even before the owner has the chance to make repairs. Immediate diminished value can be calculated as the difference in resale value of a vehicle before the damage occurred and the resale value before repairs have been made after damage has occurred.
When you need to know the true value of your vehicle, an auto appraisal by a professional at AutoLoss can help to make sure that you receive the best value for your unique vehicle. An auto appraisal takes into account the full history of the vehicle and provides you with an expert opinion on the vehicle’s value that you can then present to the bank, credit union, potential buyers, and insurance companies. There are many reasons as to why an individual may need an auto appraisal, which is why company’s such as AutoLoss provide a variety of Auto Appraisals.
A Stated Value Appraisal can help to establish the true market value of a vehicle that may be required from a bank, credit union, or insurance company. A Loss of Use Appraisal helps to value a business’ vehicle that has been involved in an accident but was necessary for business operations. This type of auto loss appraisal can help recover the value of the vehicle’s service to business. A Lease Termination Appraisal is best for individuals looking to get out of a lease early, and are determined by the vehicle, the market, and miles on the vehicle. Luxury Automobile Appraisals are another type of Auto Appraisal that help protect an individual’s investment. This type of appraisal ensures that the full value of the luxury vehicle is realized and proven. Auto Appraisals are also valuable for individuals looking to donate their car for tax write off purposes.
Total Loss Appraisals
When your vehicle is considered a “total loss”, the insurance company may make you an offer that is less than your desired amount. “Total Loss” of a vehicle refers to when the cost to repair the vehicle exceeds the cost of the vehicle’s worth. After damages occur, an insurance company may make you an offer for the cash value of the totaled vehicle minus your deductible on your comprehensive or collision coverage. A Total Loss Appraisal will ensure that this offer from the insurance company is accurate and provides you with the best value for your damaged vehicle.
Do I have to sell my vehicle to make a diminished value claim?
No! Whether you want to sell your repaired vehicle right away, or 10 years after the claim is your business. The drop in value occurs immediately, and you are entitled to be compensated immediately.
What is fair market value?
Fair market value is the highest monetary price your property will receive once exposed to an open market, allowing time to find a willing buyer, where full disclosure of all uses, purposes and adaptations of current or capable uses of the property are made.
Why should I care about diminished value?
Your insurance company will pay to repair your vehicle, but after a collision, it’s less marketable than before the wreck. When you sell the vehicle, you will be forced to absorb a loss, unless you make a Diminished Value claim.
For example, if your $30,000 vehicle is repaired after a major collision, it may only be worth $20,000. Is that fair to you? No! A Diminished Value claim allows you to get a settlement for the difference in market value for a pre-and-post crash vehicle.
It is almost impossible for an insurance company to deny a diminished value claim to an insured claimant.
If you are a resident of North Carolina — give Autoloss a call today at (877) 655-1661. You will talk to a licensed public adjuster that will inform you of your rights free of charge. If you are not being offered a fair amount for Diminished Value we can help you dispute the settlement amount by asserting the “Appraisal Clause” in your policy. Information is power, and during the free consultations we will inform you of your rights and how we can best serve you. We at Autoloss want to help you get what is due to you.