Diminished Value and other Insurance Claims Help

Thumbtack free service listing

2010-12-09T15:46:00.000-06:00

We just signed up for a great new free service where you can list your business contact info so we wanted to share the link! I love finding new ways to promote our services so I am sure there are plenty of people out there looking for the same thing so check out our diminished value services on Thumbtack, a site to find the best local services (including ours now!).

Diminished Value - Fact or Faked? 7 Things to Look for in a Diminished Value Report

2010-12-09T14:07:00.002-06:00

I wrote a new article about Diminished Value on ezinearticles.com recently and wanted to share.

Is automobile diminished value a fact? If so, then how does one prove the exact diminished value? Is there anything fake about diminished value?

In almost every successful recovery, an expert report on diminished value is required. As an expert in diminished value, my research indicates that diminished value exists in almost every case where a vehicle has been wrecked and then repaired. Generally speaking, the lesser the value of the car is before the wreck, the lesser the diminished value is after repairs, but not always. There are many factors that should be evaluated in order to properly determine the amount of diminished value suffered by a vehicle.

Here are seven things you can look for to see if the report from your diminished value expert is based in fact, or if it is faked!

1. Did the expert inspect the vehicle that has allegedly suffered diminished value?
If the expert (or expert's staff) didn't physically inspect the vehicle, they how can they be sure of the value? What if the repairs were terrible, or what if the insurance company or shop missed something? Clearly, the condition of the vehicle and quality of the repair work is important in determining the value of a vehicle.

2. Did the expert explain the scope and methodology used in determining your diminished value, and is the scope and methodology generally accepted as a way of credibly appraising damages and values?

3. Does the report evaluate the level of damages that the vehicle had sustained prior to collision repairs and rate the damage for the likelihood of future problems?

4. Does the report include photos of the vehicle?

5. Did your expert include data from dealers or individual consumers during the research process?

6. Did the expert calculate the pre-accident value of your vehicle properly, accounting for whether the vehicle is a specialty model or collectible, and all of its options?
A proper method uses more than one source and takes an average (we use five or more sources where available)

7. Did your expert inquire about warranties or previous accidents / repairs / maintenance?
A good expert will run a CarFax or AutoCheck for you (at no cost), and they will make sure they account for and disclose in their report any previous accident and will support the pre-accident value of the vehicle with maintenance information obtained from the owner (a well maintained vehicle is worth more than one that is not well maintained, right?)

I hope this helps you in your quest to decode diminished value but if you need more information, you can go to our website to find resources on diminished value, total losses, small claims court and much more! It takes knowledge of insurance processes and regulations and a lot of research. Successfully recovering on a third party diminished value claim heavily relies on how thoroughly your expert has documented your lost value and whether the methods the expert used are generally accepted methods, and not just a "guess". Sometimes it's just in the petty details!

Justin Petty / Founder and CEO of Petty Details, LLC

Find the original article by clicking here!

Will that accident affect your insurance rate?

2010-04-22T14:00:00.000-05:00

So one of the most common questions I get is related to how an accident will affect insurance premiums. If you are worried about this, then you are correct in doing so. The answer as to how much your rate will increase is specific to the insurance company that provides your coverage. For example, if you watch TV you'll see advertisements from more than one insurance company that now offer "accident forgiveness", or something of the sort. In my opinion, this is a great marketing technique, but I would want to know how much it would have cost me to have an accident before "accident forgiveness" and then whether there is a charge to get "accident forgiveness" on your policy. Without having those answers, how can one determine if the offer is a deal or a dud?

Better than finding a company that offers accident forgiveness is to research the underwriting guidelines for your current company. Many times you can get an underwriter on the phone that will explain to you how different types of accidents or claims will affect your "risk factor". Whether you know it or not, you are grouped with other insurance consumers in a "bracket" of risk. Your zipcode, occupation, age, type of vehicle, accident history, claim history, and who knows what other factors are all evaluated to determine how much you should have to pay for insurance. If you are able to get some details on how you are rated, then when and if there is an accident or claim, you will have an idea of how it will affect your insurance premium.

If it helps, I'll say that in general, insurance companies use a sort of point system to determine what rate you get charged. Most companies will assign higher points to "at fault" accidents and to large loss accidents. Accordingly, lower point values will be assigned to comprehensive claims like hail damage or windstorm, or flood or theft or so forth. Basically, small claims, and the first claim or two that are not your fault will likely result in a very small premium increase, if any, but if you rearend somebody and cause a lot of damage, you can expect that you will either be non-renewed when your policy is up for renewal, or you can expect a rate hike to reflect your now "riskier" status.

If you would like help researching this issue with your company, remember that information is always free at Petty Details, LLC. Visit us on the web!

Year In Review - 2009

2010-01-05T22:14:00.000-06:00

Well, it is now 2010. Is the world gonna end in 2012 like the Mayan calendar implies? If it does, I hope that the next two years are as fruitful as 2009. During 2009 my family ventured into the world of business management and ownership. It has been hard, but rewarding. We have been able to help quite a few individuals successfully negotiate an equitable settlement in their insurance claims. We have helped clients who had plumbing leaks that were denied multiple times by their insurance company, but Petty Details, LLC got involved and their claim was paid within 20 business days. We have helped individuals recover as much as $5000.00 on diminished value, and we have forced many insurance companies and individuals to live up to their responsibility and do the right thing. All in all, 2009 was a great year.

In 2010, we hope that our name becomes more recognizable within the diminished value and claims auditing industries. We strive to treat our customers and clients like people. We will go out of our way to let common sense rule the day. Politics have no place in our office and reason rules. If it is the right thing to do, we do it. Follow us as we grow larger and share more of our successes. If you are a friend or family, remember that we are here if you happen to be unfortunate enough to be involved in a catastrophe, auto accident or any type of insurance claim that is causing you grief. If you're not a friend or family, become one! Call us or drop us an e-mail if you have a question or just want to get some information about insurance or automobile damages.

Make the best of your 2010, we will!

Difficult Adjusters and Lawsuits

2009-11-24T10:00:00.000-06:00

As a former liability, I cannot count the times that an individual threatened a lawsuit in an attempt to get more money. I would like to make the point that adjusters are calloused to the threat of a lawsuit. Many times, the adjuster's ignorance is the reason they do not respond. It is rare for an adjuster to actually be involved in the negotiation of an actual suit, so they never get real experience and hardly ever actually hear or see what the staff attorney or hired attorney does to get the suit settled. Threatening a suit is rarely useful unless the threat is clearly credible. As a recovery adjuster, I was in charge of initiating suits against other parties to recovery claim damages, and many times an insurance company was on the other end. No matter how many times I threatened suit, I rarely ever got a response from the threat. What I began to do was prepare a petition (lawsuit), and then fax or e-mail it over to the claims department indicating when I intended to file the suit. Normally, this would get some attention as it was credible. I mean, all I had to do was put a little money with the petition and mail it to the court and a suit would ensue. Sometimes, this tactic did not get a response and so I lived up to the promise of suit and filed the paperwork when I indicated that I would. This always got a response because otherwise, the person I sued would lose by default.

The point is that the threat of suit is nothing new to an adjuster, but a real suit is a different story. It is not that hard to get a small claims suit going, and the judgment that comes from a small claims court is just as powerful as a judgment that comes from any other court. The insurance companies cloak themselves behind the complex laws of the court system, but they don't count on intelligent people handling their own suit in small claims court. I have had many cases where the outcome was easy to determine, yet I was still not able to get the claim settled fairly because of an egotistical adjuster or claims manager. Once a suit was initiated, and the defendant served, then I was almost always able to get a different person on the phone and erase the attitude of the previous handler. At least half of the suits I filed never went to court.

Be tough.

First Party Diminished Value Claims in Texas

2009-11-06T22:02:00.000-06:00

Okay guys listen, it is possible to file a diminished value claim against your own insurance company. In Texas, there are still some courts that will hear a case under the collision portion of your policy, and there is at least one case in Dallas where the trial court agreed that diminished value was part of the damage calculation that should be used under the collision portion of a policy. There are cases on both sides of the fence. The first party coverage where there is not much question is the U/M portion. Unless your policy specifically excluded diminished value, then the U/M portion will cover diminished value. Don't forget about this if you are involved in an accident where the other party is uninsured or underinsured and you have U/M coverage. You can find my number by clicking the title of this blog entry and call me directly if you have any questions. I am known for answering my phone and providing honest down to earth answers without patronizing.

Total Loss - Help Yourself on Automobile Total Losses

2009-10-06T16:27:00.001-05:00

I get a lot of questions about what the consumer can do to fight the insurance company when it comes to the value of their total loss. Unfortunately, if you don't have an adjuster's license or some other credentials that qualify you to render an opinion on a vehicle's value, then you are at the mercy of the insurance company.

All hope is not lost, though. There are a few things you can do that may help you get a better settlement without spending another dime on your insurance claim. 1) Argue. This may work if you make some valid arguments. The insurance adjuster should be able to discern whether your arguments are valid or not and if they are valid, they should adjust the claim accordingly. Make sure you have a copy of how they evaluated the value of your car and then look it over very carefully for any discrepancies in the mileage, options, or condition of your vehicle. If there are no discrepancies, you will likely have a hard time arguing value because the value is an opinion of market worth that can only be certified by an insurance company or licensed and trained professional.

So if you can not find any discrepancies in the description of your vehicle's condition, options, or mileage, and you still think you are being given the short end of the stick, you may want to invest in a second opinion. If you are filing a claim on your own insurance policy, there is likely a clause that allows you and the insurance company to pick an independent appraiser and split the cost of: 2) getting a second opinion. If you are filing a third party claim against another's policy, you will just have to pay for the cost of the second opinion and ask for them to pay you back later. In many instances, the cost of an independent appraiser or adjuster is too expensive for it to make sense to hire them, so in that case, just bite the bullet and understand that is how the system works, but if you are really getting stiffed, the cost of the appraisal may make economic sense.

As a business owner that provides this service, I set my price mark at a flat $150.00. Most of the time, a dispute in excess of this amount makes sense to pursue. I will always provide a free consultation and opinion on your case, so don't feel like you have no options. If you have found this blog, at the very least you can get the satisfaction of talking to an adjuster that is no being paid by the insurance company. Good luck!

Soft Tissue Injury Fraud

2009-09-28T20:17:00.000-05:00

There is a common idea among insurance adjusters that the majority of soft tissue injury claims are fraud. Let me put my opinion out there. As an injury adjuster for years, I saw almost every type of injury claim out there, including a lot of soft tissue injuries. For those of you who don't know, soft tissue injuries are injures that do not include any breakage of the skin or bones. They are normally describes as strains or sprains. Anyway, here is why adjusters think there is such rampant fraud. . . .

Attorneys and chiropractors solicit accident victims. I have seen it many times and the victim is an innocent bystander to the actual fraud. Here's the common scenario.

A victim has been in a crash and within days, they get a call from somebody pretending to be an insurance company representative (most of the time). This person will go into detail about the injuries the victim may have sustained and explain how serious they can be and how bad the long term effects are. The problem is that the person has no idea whether the victim is injured, but they will tell the victim that they can come get checked out for free and just "make sure". I have to say that the whole pitch is normally pretty sophisticated. It can convince a person that they need to be checked out, even if they are just sore.

Now, once they get to the "doctor's" office, they will be put through a series of tests that are designed to point out any pain a person may have, and then when there is "pain" then there is a reason for treatment. The problem is the "placebo" effect. Just think about it, if you have a "doctor" (chiropractors are not medical doctors) tell you that something is wrong with you, then all of the sudden you start to really feel that problem. It's like when you wrecked on your bike as a kid and weren't really hurt very bad and didn't even cry, but then you saw that little speck of blood on your knee and all of the sudden the pain was much worse, hehe. It is the same thing. The victims aren't responsible, they really think they are hurt because of what the "doctor" or attorney is telling them. In reality, just like with the scrape, if you just give it a couple of weeks, the soreness goes away. I'm not saying that if you are experiencing pain that you shouldn't get it checked out, I mean don't be stupid, you know? But if you are sore after an auto accident, just realize that is normal and a medical doctor that is not associated with an attorney will almost always tell you to just take it easy and maybe take some hot showers or something to ease any discomfort or pain.

The problem with thwarting the fraud by attorneys and chiropractors (not all are bad), is that it is expensive, and for a $3000 or $4000 claim, the insurance company can't afford to prove the fraud by putting in the investigative manpower.

HYPE! hehehe

2009-09-24T22:44:00.000-05:00

IT IS COMING! ! ! Watch for the WORLDWIDE RELEASE of a comprehensive new e-book that details the industry of auto claims!

If you ever wanted to know how a total loss is calculated, or what the adjuster is taught in preparation to take their license exam, or even if an adjuster has to be licensed, or how an insurance company determines what to charge you, or if that small accident is going to affect your rates and why, or how to avoid your rates from increasing, or how a salvage lot works, or who is really in charge in the claims department, or what the real adjuster's rules are, or how insurance companies find such "shady" individuals to be adjusters, or that obscure case siting that supports your unusual accident scenario or . . . or. . . . or. . . . you get the idea, right? This book is comprehensive from beginning to end and covers more than the average person would ever want to know about automobile claims, automobile insurance, automobile adjusting, and everything related to those subjects. . .I assure you that after you read it, you will want it by your side if you ever have to deal with an automobile claim. From how to negotiate with the "hardnosed" adjuster, to insider tactics that claims executives would never tell you. It's almost like I'm that guy in the black mask revealing all the "secrets" behind the best magic tricks around.

Auto Accidents - An Insider's Commentary is coming soon! It will only be available for purchase directly from Petty Details, LLC. Watch for the release before the end of 2009! ! It's going to generate a lot of talk in adjuster's circles, and I'll probably never be able to get a job as an adjuster with an insurance company again!

Written by Justin Petty (the rugged, intelligent adjuster, ha!)

Yes sir, officer, well you see. . . I was testing out my new "turbo-boost"

button, you know, like Night Rider's, me and my dad built it, but anyway. . .

here's what happened. . . . .

Texas Small Claims Court

2009-09-24T14:14:00.000-05:00

If I had a nickel . . . .

Okay, so you have run into a brick wall and can't get justice served, right? If you live in Texas, if justice means recovering money from somebody or company that owes you $10000.00 or less, then you can probably force the issue to a head by doing a little research on the Small Claims court rules. They are located in the Texas Government Code, Chapter 28. The rules of battle are clear and simple enough for most to understand with just a little research.

Here are some general tips, and if you really want to get detailed, click on the title of this posting and you'll be at my free resources page on our website:

1. Don't sue unless you have tried every other possibility.
2. Do your homework. The best way to win is to be right!
3. Call the clerk of the court and ask general questions about procedure. (Is the Judge informal? Does he conduct the hearing just like it says in Chapter 28 of the Government Code or does he allow the formal Rules of Civil procedure to take precedence?)
4. Research your opponent! Will they have an attorney? Will they show up? Can you get them on the telephone? Do they have any money or non-exempt property of value?
5. Do you understand the deadlines and how to appeal if you happen to make a mistake and lose on a technicality?
6. If you get in over your head, are you willing to just give up, or can you afford an attorney?
7. Find all the free resources you can and ask many questions.

Basically, if you have a valid reason to use Small Claims Court and your damages are within the limits allowed, then it can be a very useful way to get justice served. Frankly, most people are not very informed about how the legal process works, but more people are coming forward to help out the consumer that is being "bullied" by either a landlord, or an insurance company that is fully aware of the fact that most people won't sue because they can't afford an attorney. In 2007, Texas increased the limits for Small Claims Court and for Justice Courts from $5000.00 to $10000.00. In my opinion, this change was an attempt to lessen the caseload of "minor claims" in the higher courts of record. This is beneficial to people who know how to apply their constitutional right of access to the courts. Normally, it costs less than $100.00 to get an official lawsuit on the books in Small Claims court, and a judgment from a Small Claims court is just as powerful as a judgment from any other court. Depending on the circumstances, if you are forced to file a suit to recovery monetary damages, and you get to the point of having a judgment (my research and experience shows that about 80% of suits settle before a judgment is actually rendered), then the judgment can be used to garnish a bank account, seize non-exempt property, negatively affect credit ratings, and even suspend a driver license in some cases.

If you need to use the Small Claims court, don't be afraid to try your luck, I assure you it will be a learning experience and you will be better off in the future, win or lose. For free information about how the Small Claims Courts in Texas work, call me or visit my website, I'm sure you can find the information you need to get your dispute resolved for a cost that is much less than what an attorney would charge. Attorneys generally do not have the time to mess with small claims, they have big clients and bigger fish to fry that will make them much more money. Also, be advised that I am not an attorney, and I do not give legal advice, I simply have the tools to point you to the information you need which is available for free in the public domain and on the internet. Additionally, I provide help with finding information for free!

Good luck!

Injury Claims - How much are they worth?

2009-09-24T00:16:00.000-05:00

In deciding to try and help auto accident victims I seem to have created some enemies, hehe. Oh well. I will continue to give honest and straightforward answers to the questions that accident victims have. Recently I have had quite a few questions that relate to how to calculate how much a minor injury claim is worth. In response to the numerous questions, I wrote an e-book which is available for purchase by clicking on the title of this posting. I will also answer questions for free if you e-mail me or call me, but if you want it in writing to refer to when I am not personally available, you'll have to make a very small investment. Although I won't give away all of my secrets here on the blog, I will offer some free tidbits and general information that will compliment the e-book.

One of the things that I did not address in my e-book is the use of the Colossus system. It has been said that out of the top 20 auto insurers, 12 or 13 of them have licensed Colossus. In fact, there are a couple of articles on E-zines that list out the companies which have licensed Colossus. For those of you that don't have a clue what Colossus is, let me explain. . . .

Colossus is an injury claim evaluation software program. In the most simple terms, insurance adjusters that evaluate injury claims plug in various different terms and factors from your medical reports, occupation, doctor's office, lawyer's office, and a lot of other "proprietary" information and then Colossus compares the information with its "database" of similar injury claims. Once it has analyzed the information, it generates a "suggested settlement range". Although insurance companies won't admit that their adjusters are required to stay within the program's suggested range, I am here to tell you that for those companies that use it, it is "heavily relied upon", hehe. The insurance company will insist that the adjuster retains the ultimate authority on determining the settlement range, but they fail to tell you that when that same adjuster gets his/her "review", then they will be evaluated on how well they settled claims within the "suggested range" from Colossus. Additionally, although I can't prove it, there has been testimony that some companies "filter" out the "unusual" high settlements that would make up the database of "similar" claims.

Ultimately, my e-book explains the philosophy and the methods used to evaluate the value of an injury claim, and even Colossus has to use some of the same standards like determining the tendency of the venue and such. I would suggest that if you have an injury claim and you are dealing with it on your own, that you do a little research to try and determine if the company you are dealing with uses Colossus or any other software to evaluate your injury claim. If you determine that they do use a computer to "assist" with the evaluation, be frank and up front with the adjuster. It is likely that the adjuster will help you to provide the "correct" information that they can input into the software to get your claim settled. The software gives you back what you put in, and you just have to know what to put in, you know?

Injury claims are each different. Getting a list of the most used and "universal" factors used in evaluating an injury claim is how you can get a rough idea of what your claim is worth. Utilizing things like the "Stowers Doctrine" and being well advised on the methods used for evaluation will add up quickly when it comes to getting the right settlement for your injury.

I hope you never have to file an injury claim, but if you do, I hope you find me so I can add to my list of people I have helped. It just makes me feel good, you know?

Rental Car Companies, Tricky Tricky

2009-09-18T22:38:00.000-05:00

I recently wrote an in-depth article about the perils of renting a rent car. Let me recap. . .

1. If you don't purchase the damage waiver, beware.
2. Make sure your insurance will really cover "contract" liability. There are some newer policies that specifically exclude coverage for rental car damages under contract language.
3. If you didn't purchase the damage waiver, insist upon a written inspection report on the vehicle to be rented prior to leaving in the vehicle.
4. Be meticulous in documenting any damages on the vehicle. Do not forget to make note of windshield chips, minor scratches, stains, radio functions, antennae function, wheel scuffs, etc. . .
5. No matter how insistent the rental company is that minor issues do not need to be noted, note them anyway.

The point of this advice is that it is very difficult for you to prove that you did not cause the damages if you don't have evidence to the contrary. It is common for a rental car company to file a claim with your insurance company for minor damages and inflate the costs related to repairing them and then negotiate for a settlement and make extra money. They sometimes don't even fix the vehicle and then file the same type of claim over and over again on customers insurance policies. If this happens to you, the best advice I can give is to make sure your adjuster asks the rental company for the historical records on the rental car in question, including the prior inspection forms that were completed on the vehicle. Many times, if the rental company can't produce evidence that the damages weren't there when you rented the vehicle, they will give up the fight for free money. It is amazing how many adjusters fail to ask for this type of documentation when being presented with a damage claim from a rental company.

Don't be tricked by a rental company! It could affect your insurance premiums and your credit, depending on how persistent the rental company is. Sadly, some of the bigger names in rental companies use this tactic often. I guess this is why they "bigger".

Proper Use of Resources

2009-09-09T17:12:00.000-05:00

For a small to medium sized auto insurance claims department, the best method for maximizing subrogation recovery and reducing claims severity is to hire one specialist for every 500 subrogation potential claims that are open at any one time. Then train that specialist to promptly and effectively recover the easy money claims while sending out the "hard dollar" claims to a specialty vendor, not a subrogation mill. By specialty vendor, someone or company that can demonstrate the ability to recover money from uninsured motorists, not a company that works for a lot of large carriers (they count on the carrier missing easy money and in my experience don't do a good job at recovering from uninsured motorists). The prime scenario would also include utilizing the "hard dollar" specialist to audit subrogation demands and specialty demands for proper payouts.

This scenario which is hard to find, is where my company specializes. By utilizing a company such as ours (the only one that exists), a small to medium sized company can kill two birds with one stone and maximize uninsured motorist recovery while at the same time minimizing the amount of money they pay out on subrogation and related matters like diminished value. By specializing in these niches, Petty Details,LLC provides the most bang for a company's buck!

What can you do with an adjuster's license?

2009-09-08T17:17:00.000-05:00

If you are wondering what you might be able to do with an adjusting license, you are not alone. Outside of being a desk adjuster for an insurance company (a pretty good option for a lot of people as one can earn upwards of $50k per year after just a short while in the industry), there are not many other great options if you have no experience. First of all, don't let anybody tell you that you can become a catastrophe adjuster with no experience. Many aspiring adjusters think they can just fall into this career because it does pay pretty well, but only during catastrophe's, and it is just not that easy. A cat adjuster is somebody that goes out and evaluates damages to property on behalf of an insurance company. These adjusters are also called independents. A property and casualty license in Texas will allow you to "qualify" for this type of work, but it takes much more than just a license. Additionally, other certifications will likely be required, such as those required to evaluate and adjust flood damages. On top of the specialized training you will need, you will also have to invest in a great computer, great wireless technology, and great estimating software. Even then, if you don't have some contacts in the construction and insurance industries, you will likely fall by the wayside very quickly. Anyway, so cat adjusting is something I would not suggest unless you are just hell bent on it. The other options you have are limited. I have been adjusting insurance claims of one type or another for nearly 15 years, and there are not that many opportunities to make more than $60K or $70K per year unless you are well up there in the experience range. It is experience more than education that speaks to one's adjusting ability and prowess. If you are very well disciplined, then you might move up the line into litigation or some other specialty within 5 to 10 years, but you will have to work your way up the ladder. I have seen few exceptions to this rule, and those exceptions were based on "politics". You know, like knowing somebody high up on the ladder. The other option I see is self employment. You would have to get some specialty licensing and I would still suggest having experience of at least 5 years before trying to delve into a business of auditing and specialty adjusting. It is difficult to master all the nuances of claims adjusting without hands on experience. If you still have questions or want more detailed information on how to become an adjuster, visit my official site and give me a call or shoot me an e-mail. I will be more than happy to tell you what I know.

Texas Driver License Suspensions

2009-09-02T23:24:00.000-05:00

Why can't people just look up the law on their own? I cannot figure out why some people can't help themselves. I guess that is why I exist, hehe. Really though, if you are getting calls or letters from an insurance adjuster or subrogation specialist, you would do yourself good to follow my articles on E-zines. My most recent article will explain how that works and whether or not you can actually lose your driver license and registration due to an auto accident. It details the factors that have to exist before the State of Texas will take any suspension action. Also, just remember, the Texas Department of Public Safety is not going to call you up on the phone, and if they send you a letter it will have their official seal on it. If you get a letter from anybody else that says your license is suspended, then you should call the DPS and find out from the horse's mouth. Okay, that's it for now!

Don't lose it for lack of information!

Texas Diminished Value Claims

2009-09-01T01:37:00.000-05:00

Where do some of these "diminished value experts" people get off? I agree that insurance companies are not so inclined to pay diminished value, and people sometimes get dollar signs in their eyes when they are involved in an accident that is not their fault. The reality is that diminished value exists, but it is definitely hard to prove. There are arguments that adjusters use all the time to try and dismiss a valid claim and save a few bucks. The problem is that most of the "diminished value experts" out there have never actually been adjusters. Through a little research of my own, I have found that at least four of the companies that heavily advertise diminished value services do not even have an adjuster's license, much less actual experience adjusting. Tactics like picking and choosing favorable points from different case laws or inappropriate "rules" are all too common. The fact is that it takes someone who has experience adjusting claims, and has experience evaluating vehicle damages and values to properly evaluate the loss in market value of a vehicle. Simply being an auto salesman or a damage appraiser is not enough (in my opinion). Each only deals with one aspect of any vehicle's value. The salesman is out to sell a vehicle for a profit and deals in retail values and "trade in" values, and the damage appraiser is trained to identify damaged parts, and on repair methods. Neither alone makes for a good diminished value appraiser. Even someone who has both experiences under their belt is not the prime candidate.

I have to toot my own horn a little in this field as I have been in front of Judges and have been challenged by attorneys as to the level of my expertise in determining diminished value. It is complicated. First of all, the most common type that is owed by an insurance company is inherent diminished value. One of the factors that goes into my formula for inherent diminished value is a fluctuating factor, "current market trends". I have recently written a report, and since it is likely going to litigation, I won't give details, but I'll give a similar example so you can see my point.

If one owns a vehicle that is over 8 years old, many companies will not consider diminished value on the vehicle (until their insured is involved in a lawsuit). It is ridiculous to use this type of a "rule". What if I have a 1965 Ford Mustang that is damaged in a collision? The marketability of the vehicle is a primary factor in determining how much value it could potentially lose due to sustaining collision damages and having to be repaired. In addition to the market tendencies, the location of the damages, the components damaged, the general condition of the vehicle and a many more factors are needed in order to accurately estimate a loss in market value.

If you are an insurance company that will not appropriately evaluate diminished value, be advised that I am out here, and my reports will be admitted at trials as my methods and credentials will pass a "Daubert Challenge". I do not inflate any diminished value claim, and many times, I do not find any diminished value.

If you believe you have a diminished value claim, before you go off threatening suit, be sure your evidence is sound and not just some report filled with speculation by an untrained party.

Adjuster Inexperience

2009-08-30T00:28:00.000-05:00

During my years as an insurance adjuster I came to realize that most insurance companies hire inexperienced adjusters to handle most of the smaller property damage claims that come through the doors. When I first started adjusting insurance claims, the best pay I could find was $22K per year, and when I started adjusting claims that was okay money, but I could have worked 50 hours a week at a grocery store for $9 or $10 per hour and made just as much or more. I did a lot of soul searching those first few years, and I definitely was not impressed with the whole adjuster career. I was taught to stick with it, so I did and in about two and half years, I lucked out and got a job offer paying nearly $40k per year and my current employer would not give me a raise to keep me (I would have stayed for just a little acknowledgment in my pay rate), but anyway I left. I worked in many different capacities and I worked with hundreds of adjusters. There were very few that impressed me with their drive to succeed and it seemed that adjusters were just adjusters because it was a fairly easy job to get into. This holds true today, insurance companies hire inexperienced adjusters, they go through a week of training and are handed a license and then they are a "full fledged adjuster". A lot of young kids let this go to their head, and the companies like this, they can mold them. What happens is that an adjuster has a supervisor and the supervisor has a manager, and the only one of the three that really knows the ins and outs of the claims process is the manager. The supervisor gets to be a supervisor by being a good "order follower". Once they have a few supervisor's who are brainwashed, they can line up new adjusters under the supervisors and the managers just look for ways to make everybody work faster. That's it. If you have a low value property damage claim, the chances are that you are getting a very inexperienced adjuster and that you most likely won't have a smooth claims process. Check out my website by clicking any blog title and get my number or e-mail address. Send me a message or give me a call. I will always provide a free claim consultation and give my honest opinion. I hate it when inexperienced adjusters act like they know what they are doing when they are just taking bad advice from the supervisor or manager. Anyway, enough ranting for today. . .

Free Help

2009-08-28T17:28:00.003-05:00

Why is it that people can't do a little research on their own? Resources like my website and many others are out there to help people with almost any problem. Laziness is not a virtue, hehe.

Critical Thinking

2009-08-26T17:30:00.003-05:00

Critical thinking is a skill that I believe everybody needs to master. Some people just don't have the capacity to think in a critical manner, but for those of us that do, the tactics involved can help to resolve all types of problems, including insurance claims.

I recently wrote and article about critical thinking as it relates to claim negotiation. The full article can be found in the Ezines link at the bottom of this page. In summary of the article, remember these 6 seemingly simple rules (they are easy to understand, but hard to enforce upon yourself).

1. Never assume anything
2. Listen carefully
3. Keep notes
4. Research on your own
5. Remember what you believe is always an opinion (facts are only the opinion of the majority)
6. Make sure you understand before you settle

If all else fails, run away!

Used Vehicle Taxes

2009-08-22T15:48:00.004-05:00

Did you know that if you purchase a used vehicle, the tax office will calculate the value of the vehicle and charge you taxes on their value and not what you paid for it (unless you paid more than their value comes out to)?

If you want to get around this, contact an adjuster and get a certified tax value. You can save hundreds off of used private auto sales tax!

First Posting! !

2009-08-22T00:56:00.002-05:00

I'm starting this blog as a free information service to individuals that need information about insurance claims or insurance adjusting. I will never give legal advice as I am not an attorney, but I will try and answer any question related to insurance claims or adjusting that I have the ability to answer, free of charge!