I've seen quite a few articles about diminished value being the biggest secret in the auto insurance industry. I'm here to tell you that it is not a secret, it is just something that most insurance adjusters don't understand. They all know about it, and so do you, or you wouldn't have searched for it and found this article. The problem is that nobody seems to know how to properly calculate it. The 17c formula is a joke.

It just takes a little hard work and some credentials. There are few companies that utilize a proper scientific method for calculating diminished value. In 14 years of adjusting, I have seen less than five reports that would probably be good evidence in a civil trial.

Simply because one has a lot of experience in auto claims or in selling vehicles or in appraising damages doesn't mean that they can properly calculate diminished value. Additionally, nobody, no matter how much experience they have, can provide a diminished value without gathering market and sales data.

If there is anything like a secret when it comes to diminished value claims, then it has to be in the way a claimant negotiates. The biggest problem I run into is ignorant adjusters and the tactic that many companies use which is "playing dumb".

Problem #1:  The adjuster simply doesn't understand diminished value.

This adjuster has been trained to deny payment and if that doesn't work, then the "physical damage" department will come up with some ridiculous figure to offer and nobody will be able to argue the merit of their diminished value calculation. They will simply expect you to take their offer because they are the "experts".

This is a hard scenario to overcome and it takes some specialized tactics. One would be well served to call someone that is a real expert in insurance claims and negotiation tactics, or an attorney.

Problem #2:  The company plays dumb.

Their tactic is to just act like they have never heard of diminished value. Again this is a hard tactic to overcome. The best way of handling these companies is to be well informed. Sometimes, citing some case law precedence is the best way to let the insurance company know you are not playing their game. Believe me, there is no insurance company out that that is not aware of diminished value, but they all seem to handle it in a different manner.

The bottom line on diminished value is that it exists, and there is a way to document and calculate it which will hold water in front of a jury. If you have a diminished value claim, your job is to find a reputable expert that will help you figure out how to get your money and that can write you a report that substantiates a diminished value calculation.

Sometimes it's just in the petty details!

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