Reduced values ​​, Impairment, or commonly referred to as "DV" is a term commonly used to describe economic losses in property values ​​as a result of damage. The reduced value (DV) is often associated with a damaged vehicle, however, it applies to other properties of value including collections such as jewelry, artwork, etc. For the purposes herein, the reference will involve the loss of a damaged value. car in which the term is often applied.
Unlike "depreciation", which is an anticipated and predictable loss over time, 'Inherent Diminished Value' is a loss of value due to a specific negative event, sudden and unexpected. The reduced value of the car after an accident can occur in one of three ways (or a combination of both):
(1) missing value related to improvement;
(2) The value is reduced immediately; and
(3) inherent reduced value.
The value associated with the improvement is a loss of value due to the inability to repair the vehicle perfectly, so it's worth less after repair than before the accident. Immediate Decrease - Differences in resale value of the vehicle immediately before damage occurs and immediately after damage occurs (before repair). Because courts are seldom selected as places of restoration of property damage, the standard "Decrease Immediate Value" is rarely used in resolving Property Damage claims. It also refers to the loss of value caused by the insurer's direct involvement in claims adjustments in which the insurer gives control over incomplete, inadequate repair and repairs, or returns the vehicle to a less than standard condition.
Inherent Diminished Value - Assumes that the quality of the optimum repairs has been achieved and is defined as the amount that the resale value of the repaired vehicle has been reduced only because the subject vehicle now has a significant damage history. This is the most recognized and accepted form of the Reduced Value. This is also the basis on which any additional form of the Reduced Value will be added. The common "Additional" form of the Reduced Value is "Related Value of Impaired Impairment".
Typically, structures or vehicles with structural damage can not be resold as "certified pre-owned vehicles."
The true size of the losses attached to the damaged vehicle in value can be measured as the difference in the value of the vehicle prior to the loss after loss, before or after repair. The standard rules for assigning value to the final model vehicle are: 20-25% behind book (Black Book, KBB, NADA) and utilize actual sales results, and not on advertised price.
While some may claim the Decreased Value (DV) is subjective and based on perception or speculation, the old saying "perception becomes reality" applies and thus Diminution in Values ​​is real only because, for the most part, nobody makes sense and wisdom who are willing to pay the same price for a vehicle with a history of damage as they do to people who have never broken. Retailers often offer discounts for scratches and dents on equipment, electronic goods and preserved dents, therefore, it makes sense that the value of a damaged motor vehicle will be impaired.
Additional factors may be considered in evaluating the lost value of damaged and repaired vehicles and may include, but are not limited to: the vehicle itself (ie rare, originality, market demand, etc.), vehicle pre-loss conditions, severity of sustained damage ( eg damage to the framework, flood, fire, etc.), history of the subject vehicle (ie one owner, previous damage/repair, passenger death etc.), quality and accuracy of the improvements made (ie quality of parts, materials, workmanship, etc..) and additional value judgments including, but not limited to, the value associated with the pre-ownership certification program. etc.
Car insurance companies may not easily recognize or offer to pay a reduced value. Each state may have different opinions about DV. Example; The state of Georgia allows the insured party (first-party policyholders) to file claims for their remaining economic losses to DV from their own insurance company while neighboring Florida does not. However, most countries allow victims of the omission of other parties (third parties) to make DV claims from the wrong side.
The length of time for collecting Deducting Values ​​will vary depending on the state laws of each limitation for first-party claims (contractual) and third party claims (restatement of lawsuit).
Video Diminished value
Rating Reduced
The value of the diminished valuation evaluates the difference in the value of the motor vehicle after the collision repair. Reports are usually prepared by an Expert Rating Expert who is experienced in the DV field and who can provide expert testimony for Judgment, Arbitration, Mediation or Litigation in court. This Appraisal Report is used when filing or rejecting a reduced value claim against another party and/or an insurance company. This report measures the losses attached to damaged vehicles. The reduced value can be measured as the difference in the value of the vehicle prior to the loss after loss, before or after repair. In many cases even if the repair is done expertly, the value of the car will still be much less after the loss. When consumers find that a vehicle has crashed, most consumers will never pay the same price for an improved vehicle compared to that without a loss of history.
Some reports include assessments of damage done to motor vehicles, quality of repairs made, market value of vehicles before and after the accident. There are no rules set to measure the reduced value, and since each vehicle loses its value differently, one size fits all the formulas will be very inaccurate.
Maps Diminished value
Regional
The recognition of the concept of reduced value varies from country to country
United States
Some state laws recognize the lost value and provide the ability for consumers to collect first-party claims from DV from their own insurance companies under their own policies. Most countries allow consumers to collect third party claims from the wrong driver insurance company. Some countries recognize responsibility for third party claims but not first-party claims.
Georgia
In Georgia, vehicle owners can collect DVs based on their own policies.
Florida
The missing value is part of Florida Civil Standards Jury Guidelines. The value of reduced legal cases in Florida is mainly based on two cases.
- Siegle vs. Progressive Consumer Insurance Company, 819 So.2d 732 (Florida 2002).
The ability to receive reduced financial compensation from the wrong drivers because of their omission was decided by the Florida Supreme Court in the case of Consumer Insurance Company Sively vs. Progressive. After the insurance company Siegle was able to exclude responsibility for the payment of the reduced value to the vehicle they insured through the language in the policy.
- McHale vs. Agriculture Bureau Mutual Insurance Co. 409 So.2d 238 (1982)
The Third District Court of Florida, confirmed that the exact measure of damage is the cost of repairs plus the reduction in the value of the vehicle. The Court also directs that the proof of impairment is the expense of the Plaintiff filed a claim.
Washington
On July 15, 2014, a policyholder in the state of Washington filed a class action suit filed in the High Court of Pierce County seeking the value of reduced insurance benefits under their auto insurance policy. The insurance company filed a notice to remove the lawsuit to the federal district court on August 20, 2014. The case is titled Johnston v. United Services Automobile Ass'n .
Canada
The ability to recover damages for accelerated depreciation varies from Province to Province.
In British Columbia, the law recognizes these losses as damages that can be recovered and quantify claims based on the reduced value at the time of the collision.
The rules governing the receipt of depreciation reports in courts vary according to jurisdiction. For example, in British Columbia, Canada, the Supreme Court of BC requires such a report to comply with Rule 11.
See also
- The asset is interrupted
- Removal
- Depreciation
- Certified pre-owned
- Statute of limits
- Losing usage
References
Source of the article : Wikipedia
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