Your Cars After-impact Diminished Value
The(ACV)Actual Cash Value Policy DOES NOT insure the property itself but the VALUE of the property.
Okay let's say the insurance company chooses to "Repair" their insureds damaged property (as is their option within their contract of insurance). HOWEVER, such an election DOES NOT relieve them of their contractual duty to restore the Pre-Loss VALUE of the motor vehicle.
To whatever extent such repair's fail to restore that motor vehicles Pre-Loss VALUE , should be tendered to the policyholder in cash - - and failure to do so is nothing less than insurer fraud! (AND YET, the majority of them will NEVER restore the car to its Pre-Loss VALUE and when you ask them for cash they'll laugh out loud at your "Foolishness")!
Items are all too often repaired improperly or overlooked completely.
Several of these typical repair-related items could be: Poor quality repairs, improper welding, or flawed refinish operations.
"Diminished Value" is clearly owed and if a vehicle has not been brought back to it's pre-accident function, appearance, safety, and value. QUESTION: "How often is this done?" ANSWER: " If they can get away with it - - Never!"
THERE ARE THREE BASIC TYPES OF DIMINISHED VALUE
#1. "Inherent Diminished Value": This is the automatic and unavoidable loss of market value simply due to the fact than a motor vehicle has been involved in an accident. It many cases it's mandatory that previous damage is made known to a prospective buyer. QUESTION: "Is a prospective buyer told that the motor vehicle has been in an accident?" ANSWER: "NO!"
#2. "Insurance Related Diminished Value": This comes to pass due to oversights and/or omissions by the insurance company on their appraisal. And also, because of the use of "Imitation Replacement" parts. QUESTION: "Is ANYBODY ever made aware of this?" ANSWER: "No, Dan Baldyga was in the business of Insurance Claims for 35 years, and I NEVER knew anybody who was made warned of that!"
#3. "Repair Related Diminished Value": This is the amount which the motor vehicle was depreciated due to improper or incomplete repairs, poor quality repairs, and/or un-repaired items that were compensated for within the insurance appraisal. QUESTION: "Is the insured or the person who is about to buy that car told this?" ANSWER: "You've got to be kidding!"
Auto repair shops (even the most advanced) do not have access to the type of equipment and it's IMPOSSIBLE for them to afford such technology that a manufacturer can. And, that being the provable case, you're not going to be returned your car in the absolutely perfect value it was when it came off the assembly line!
It's a fact of life that should a potential buyer discover the motor vehicle one is about to buy has been in an accident that it's going to be worth less money. Because of that almost every damaged motor vehicle will have some possible inherent "Diminished Value" which can evolve into an actual loss to the consumer. This loss is owed by the insurer (due to their alleged promise in which they've implied to their insured within the confines of their insurance contact with them) that would be made "Whole".
PLUS THERE ARE MANY OTHER "REPAIR PROBLEMS". (The following are 4 of the most potential of them bubbling and boiling under the surface):
#1. Most consumer's don't know what kind of parts they're getting. They assume their motor vehicle will be restored to its pre-crash condition.
#2. Too often the "Imitation Parts" don't match the car's contours leaving an all too often impossible mess to correct.
#3. When it comes to fenders there are "Fit Problems". Some require widening the holes or using shims. Many don't match the contour of the car and require significant reworking.
#4. Replacement bumpers often need to be re-drilled or widened leaving large gaps or uneven surfaces.
DISCLAIMER: The only purpose of this article "YOUR CARS AFTER-IMPACT DIMINISHED VALUE" is to help people to understand the motor vehicle accident claim process. Neither Dan Baldyga, Christoper M. Knight nor EZINE ARTICLES make any kind of guarantee of any kind whatsoever, NOR to substitute for a lawyer, an insurance adjuster, claims adjuster, or the like. Where such professional help is desired IT IS THE INDIVIDUAL'S RESPONSIBILITY to obtain said services.
Dan Baldyga's third and latest book, AUTO ACCIDENT PERSONAL INJURY INSURANCE CLAIM (How To Evaluate And Settle Your Loss) can be found on the internet at http://www.caraccidentclaims.com or http://www.autoaccidentclaims.com. This book reveals "How To" successfully handle your motor vehicle accident claim so you won't be taken advantage of. It also goes into detail regarding the revolutionary BASE (The Baldyga Auto Accident Settlement Evaluation Formula). THE BASE FORMULA explains how to determine the value of the "Pain and Suffering" you endured - - because of your personal injury.
Copyright (c) 2005 By Daniel G. Baldyga. All Rights Reserved
Dan Baldyga is a retired Insurance Claim man. He was an Adjuster, Supervisor, and Claims Manager for 30 years and then spent anoter 5 as a Trial Consultant. He has written 3 highly successful "How To" Automobile Accident Books. He can be reached at firstname.lastname@example.org.
Guide To Life Insurance
Here is a useful guide to life insurance. Simply put, a life insurance policy provides a lump sum payment upon death of the policy holder.In exchange for regular premiums, a life insurance company will insure your life so that when you die, the policy should pay out to protect your dependants from the extra pain of financial hardship.This is particularly important when buying a house, or when you or your family takes on a large, long-term financial commitment. In the event of death, for example, the payment from a life insurance policy can be used to pay off a mortgage.Policies can be arranged on either a single or joint life basis. Depending on the type of policy you choose, your insurer will pay either a lump sum or a regular income which you could use t...(related: Insurance)
Finding Life Insurance Quotes For Adult Children
Shopping for life insurance quotes for adult children isn't any different than it is for adults or seniors. Underwriting issues can vary a little but essentially life insurance quotes for adult children follows the same routine.Where we do see a difference is in qualifying. Some companies don't allow you to buy more than (2) times what the adult parent has, other companies may use other multiples. Underwriting also considers the premium paying capabilities of the person being insured and etc.A certain amount of caution exists when companies receive applications for children. A simple explanation on the back of the application will normally set everyone at ease. Being a advocate of carrying insurance myself I bought a liufe policy on my 12 year old son simple to get him started at an early age and lock in his rates forever. It als...(related: Insurance)
Medical Insurance - Health Insurance Coverage & Plans Explained
If you're trying to decide between health insurance plans, you'll find that there are several different kinds from which to choose. It's important that you weigh ...(related: Insurance)
Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!
With Nursing home Cost's running $4,000 to $6,000 a month and outpacing inflation, it is a small wonder that most seniors cannot afford the Long term Care insurance premiums. Their are low cost Alternatives available for seniors who just can't afford the rising cost of these Premiums.Many Seniors even question if they need Long Term Care Insurance. Take a look at...(related: Insurance)
Need A Car Insurance Comparison? Dont Have Time?
If you decide not to do a car insurance comparison and simply renew your insurance at the same rate, you could be paying away needless amounts of your hard-earned money. By doing a car insurance comparison, you could get a cheaper rate than what you are presently paying.A car insurance comparison rate is quite easy to do from home on your computer. This way you don't have to spend time during the day contacting the various insurance companies during their business hours. You can sit down at any time of the night and do the car insurance comparison yourself by requesting free quotes from the various online ...(related: Insurance)
Term Life Insurance And Permanent Life Insurance
Term insurance and permanent insurance are two basic types of life insurance. Term life insurance is temporary, and it covers only a specific period of time called the relevant term. Permanent life insurance is the type of insurance where the policy is for the life of the insured and the payout is assured at the end of the policy. Term life insurance builds on cash value while permanent life insurance accrues cash value.Now l...(related: Insurance)
Do You Know What The 7 Home Insurance Plans Are?
Most people don't realize that there are 7 different homeowners insurance plans that insurance companies can offer. Each plan is different from the other 6 based on the circumstances that it covers. Additionally if consumers are familiar with any of the plans it would be plans that involve parts of option 2 and option 3. You'll see why as I explain each plan in more detail...(related: Insurance)
Life Settlements, More Than A Cash Surrender Payout
With a life insurance settlement, seniors now have the ability to receive a payout larger than their cash surrender value. Life insurance companies have always had the advantage by offering a low cash surrender payout for unwanted or unneeded life insurance policies. Now however, senior consumers are using a life settlem...(related: Insurance)
Car Insurance Gearing Up To Drive Down Costs
For once finances seem to be going in favour of the UK motorist, with Esure announcing plans to double its share of the UK'...(related: Insurance)
Consumer Driven Health Plans [ Cdhp ]
Do you know that skyrocketing health care costs have been draining the federal government and employer's exchequers over the last couple of years? The health care costs account for 15.5 percent of U.S GDP and is the most expensive benefit paid by employers, seriously affecting their competitiveness in the global market. Health care spending is projected to top $1.9 trillion in 2005, about twice the amount being spent on education. According to the Employment Policy Foundation, employers have spent $331 billion last year for health insurance, a 50 percent increase since 1998. All of these never-improving alarming statistics did result in de...(related: Insurance)