Diminished value appraisal Report is the term that perfectly suits the saying that one size doesn’t fit all. In the event of a car accident, the victim may have to issue a report on diminished value appraisal Seattle. As a standard of proof or evidence, insurance companies will believe whatever the documentation presents as official. In other cases, the insurance company may deny the diminished value claim due to one reason or the other. Thus, a person must know that some insurance companies may be a pain in the neck at certain times.
Basically, there are simple steps in the whole process. A wrong first step a victim can make is to print out trade-in values or get a trade-in appraisal from a dealer. These count as examples of hopeful thinking. The step above will mean that the dealer defrauds the victim to make extra cash off the deal. A simple case study is when a victim approaches about ten dealers to get a diminished car appraisal. On the average, the dealers gave four different prices for the worth of the car.
- The first group gives the victim a KKB with promises that the victim gets a new car which the company can balance off for the profit they will make and what they pay for the trade in
- The second group will put up the crashed car for wholesale and give a low amount such that they can make profits when they sell to another dealer
- The third group will generate a price that is based on the average
- The fourth group will give a price for auction pricing based on the MMR
These four groups are not even close to being accurate in the real market. There are two scenarios that the injured party may find themselves
- The first scenario is to go online for an instant valuation based on the wholesale market which is absolutely inaccurate
- The second scenario is to go to a redundant consumer book
A careful caution to consider is that some dealers may hoard relevant books from consumers. Also, there are many variables in the market. Finding a specific car for sale at a particular price doesn’t necessarily mean it is the average.
In different states, it is common practice to discover different methods of calculating losses in insurance and tort. A few of them are:
- FMV Broad evidence rule by an expert
- Replacement Cost without Reduction for Depreciation, and
- Replacement Costs Minus Depreciation
Also, every state has differing formulas for acceptable comparable vehicles and USPAP appraisal standards. A certain ‘rule 702’ refers to every expert appraisal as an expert opinion. Thus, another popular term for the rule is a standard of evidence.
The legality of an instant report which bears no signature or review repairs may be dicey. More so, assessments are illegal. Rather, they are estimates that are regarded as formula-based reports.
According to the definition of the diminished value assessment, the value is an estimate. Hence, it is worthless because it may be subject to automation online or without human expert review.