DVC

Posted: Wed Dec 09, 2009 05:01 pm Post Subject:

Maybe you should send them a copy of this directive, they probably didn't get the message. The Georgia 17-C formula is to be used only in the event you have no other methodology to arrive at the diminished value and is not sanctioned or endorsed by the Georgia DOI.

Insurance Commissioner John Oxendine has issued a directive
informing automobile insurance companies licensed to conduct
business in Georgia about the proper handling of diminished value
claims.
Commissioner Oxendine ordered all auto insurance companies to cease
using any language that implies that the Department of Insurance has
endorsed or approved a particular formula for determining diminution
of value in physical damage automobile claims.
Diminished value refers to the loss of value in a vehicle that has been
damaged and repaired. The Commissioner issued a previous directive
in 2001 regarding the Georgia Supreme Court ruling that set precedent for diminished value claims.
What this clarification means for consumers is that their insurer will have to settle each claim on an individual basis,
because no single formula can be applied to all diminished value claims.

Posted: Wed Dec 09, 2009 05:10 pm Post Subject: CVC

Thanks for the information. I could understand if I was even asking for the full value of the claim sent to them but after not returning my phone calls and emails for over 3 weeks and them coming back stating they were approving to pay me $500 is crazy. I just want them to be fair. This car is paid for and it is only an 07 car so 2 years old and was in pretty average shape before the accident. The damage was approximately $6500 and it took them 2 and half months to make those repairs. I'm just so fustrated at this point! Thanks for your advise, I truley appreciate it!

Posted: Wed Dec 09, 2009 06:20 pm Post Subject:

It will also depend on what type of dv claim you have. Immediate or Inherent. The formula was named rule 17c. It is outdated and extremely inaccurate. A lot of false hoods are practiced by insurance companies to day, and is or sounds like a script that they give to their adjusters. Rule 17 came out the Mabry vs State Farm case in GA. Some insurers will incorrectly tell you the method for measuring DV has been ordered by the Georgia Supreme Court. That is false.

Posted: Wed Dec 09, 2009 06:26 pm Post Subject: DVC

Not sure what the difference is?

Posted: Wed Dec 09, 2009 06:41 pm Post Subject:

Immediate Diminished Value is the difference in resale value of a vehicle immediately before damage has occurred and immediately after damage has occurred (prior to repair). Most jurisdictions (courts) will use this standard as the primary measure of damage when courts are employed to seek reimbursement for damage from a negligent party. As courts are rarely the chosen venue for recovery of property damage, the standard of “Immediate Diminished Value” is rarely employed in resolving Diminished Value Claims.

Inherent Diminished Value assumes optimal repair quality has been achieved and is defined as the amount by which the resale value of a repaired vehicle has been reduced simply because the subject vehicle now has a significant damage history. “Inherent Diminished Value” is the most widely recognized and accepted form of Diminished Value. It is also the basis upon which any supplemental form of Diminished Value would be added. A common “Supplemental” form of Diminished Value is “Repair Related Diminished Value

Posted: Wed Dec 09, 2009 07:01 pm Post Subject:

Your best bet would be to find an adjuster or firm in your area that can assist you with preparing a report.

Posted: Wed Dec 09, 2009 07:18 pm Post Subject:

Frankly I think they undervalued your DV claim. Did you use an online company or did an appraiser actually inspect the damage, take photos, and give you any documentation as to how they arrived at their figure?
Did the inspector perform a post repair inspection of the work to make sure you got what you paid for and that the repairs were completed at a level of oem recommendations? Is the person available for deposition if you turn it over to an attorney or are they willing to assist you as an expert in a venue such as small claims court?

You are also entitled to collect the cost of your report to prove your loss. Why not use small claims and sue the at fault party using your report as a proof of loss. Use your correspondence that they made you an offer admitting they owed you for the loss but with your report you are disputing their findings. Your DV professional should be able to assist you by providing you documents disputing the methodology and validity of the 17C formula they most likely used.

Posted: Wed Dec 09, 2009 08:10 pm Post Subject: DVC

I know they have undervalued my DV claim. When I orignally talked to this company, by the way, their truck was driving in Texas and lost 2 18wheeler tires off the back of their truck which bounced off hit the road and another oncoming 18 wheeler then finally hit my 18 year old sons car within inches of coming through his windshield. It hit a 1/2 above the front drivers side headlight and skidded all the way to the windshield bar...busted the windsheild, pushed the entire dash board in about 2 1/2 inches and smashed in the drivers side of the hood. The total repair cost was like $6000.00 and they paid that, took 2 months to repair. When I called and talked to the adj, he said "You should go locally and have someone look at it and give you a report then send it along, with the cost of the report, to me and I will see what I can do, but we (the ins co.) figure close to 900 or a little more. So I did just that and the report cost me $75.00 and they estimated (the local appraiser) the DV to be $1,500.00. That is what I sent to the ins co. After not responding to my calls and emails for 3 weeks, I called a finally ask to speak to his manager. Within 10 mins, he sent me an email stating they used the GA formula and came up with $222.50 and he has convinced them to offer me $570.00...that is where we are now and I told him that it wasnt enough or fair. I'm waiting on the local guy who did the DVC to return my phone call to see what he can do to help me get at least more than $570.00.

I appreciate all of your advise and will keep everyone posted on the claim!

Posted: Wed Dec 09, 2009 09:28 pm Post Subject:

The GA formula is only used as a back up when all other documented resources for calculating the claim has been exhausted. I can gaurntee you that they more than likely only used this and nothing else (insurers do this with much frequency). You need to ask what resources besides 17c did they use to calculate. If they bring it up again, you may need to get a lawyer involved. If this goes to court, the court will ask them the same thing. If they can't provide the information, it maybe in your favor. This summer I did a DV claim for a lady. The carrier only used the 17c forumla. On an $8000 repair to her 08 Camry, the court ordered the carrier to pay the amount of $1900.00 that I recommended.