Collision Repair and Diminished Values

Diminished Value Collision Repair

When you’re looking for a collision repair shop, you’re often frantic and worried, so it’s tempting to go with the first body shop you find.
In some cases, an insurance company (maybe even the company of the person who hit your car!) pushes you to choose a specific shop. However, it’s your right to choose the collision repair team you want, and in most cases the shop an insurance company recommends will not have your best interests at heart.
Many people don’t understand the nuances of diminished value claims (DVCs) until it’s too late, but it’s an important part of collision repair.
When a vehicle is in an accident, its value is diminished. Even if your vehicle is flawlessly repaired — as it should be — it’s going to have diminished value in the eyes of a future buyer or dealer offering a trade-in. Nobody wants to pay the same price for a vehicle that’s been in an accident compared to an identical vehicle that hasn’t.
Choosing the right collision repair shops and making sure you file a diminished value claim with your insurance company are equally important and should be taken care of in tandem.
Why Does the Shop Matter if I Have a DVC?
Your collision repair shop can make a huge difference in your DVC. With three types of legal DVCs, it’s paramount that you get the repairs and compensation you deserve.
An immediate diminished value is the difference in resale value before and after damage occurred, but before any repairs are made. When legal decisions are being made to reimburse for damage, this is the DVC courts consider. However, the catch is that most property damage claims aren’t decided in courts.
The inherent diminished value assumes that the best repairs have been made, and is the new resale value of a vehicle that has been repaired. The value is now a little lower than pre-accident, because it’s assumed that even with flawless repairs, the vehicle has a damage history now and isn’t as valuable.
Inherent diminished value is the most popular and recognized. It’s sometimes called supplemental diminished value by court systems and insurance companies.
A repair-related diminished value considers extra dollars that a resale value might be lowered thanks to subpar repairs, and covers everything from big structural problems to the tiniest cosmetic nicks.
A Collision Repair Shop that’s DVC Minded
Choosing the best collision repair shop is paramount to your peace of mind, wallet and safety. However, know that no body shop can reverse damage, and your vehicle always will have a damage history. Pore over your auto insurance policy, preferably before an accident, and get acquainted with its DVC rules. In some cases, you may want to increase coverage for a better DVC option.
After an accident, make sure you choose a shop that’s reputable and will restore your vehicle to the best possible state so your DVC is the best it can be. Contact Dent Master today for a free collision repair quote.