RE:  Greater Potential Recovery on BI Claims / Diminished Value

An attorney once confessed that because vehicle damages are often repaired before bodily injuries are settled, attorneys are falsely lulled into believing that their client’s property settlement has already been accomplished.  As a result, attorneys don’t always realize the responsibility they have with the property damage part of a claim, or that the potential for serious problems and financial loss still exists for their clients.  Here are some statistics we recently compiled that reveal some of the losses many clients face AFTER property settlements have been finalized.

• More than 40% of repaired autos are reconstructed so poorly, they are rendered unsafe to drive.
  
• More than 70% of repaired cars are less valuable than they were prior to the loss.
  
• On average, consumer’s diminished value amounts to more than 30% of the car’s pre-loss value.  A typical car with a pre-loss value of about $20,000, suffering $10,000 or more in damages and average quality repairs, will lose approximately $6,000 when sold with full disclosure. [more info]
  
• On a scale of 1 to 7, (1 representing true pre-loss condition and 7 being junk) the body shop report card shows the level of repair quality at 4.5 in the tri states of Ohio, Kentucky and West Virginia.
  
• Consumers will lose OEM warranty coverage they paid for, and their cars will no longer qualify for inclusion in manufacturer pre-owned certification programs.

For more than 10 years now, I have been working with consumers and their attorneys to document poor quality repairs and calculate diminished value to cars, trucks, motorcycles, and motor homes.  We have witnessed first-hand, and it probably shouldn’t surprise you to learn that insurers often write auto damage estimates for half of the actual cost to repair a car, hoping a claimant and his/her attorney will be none the wiser.  Body shops readily agree to repair for the lower amount, just to have the work – then they cut corners to make it profitable.  But, when the full measures of damages to vehicles are considered, attorneys report that their potential to recover a larger amount of money for bodily injuries increases significantly.  Ask yourself, would it be easier to substantiate bodily injuries with $10,000 in property damage as opposed to $5,000 in damage?

*Depending on inspection location, travel costs my be incurred

• More than 40% of repaired autos are reconstructed so poorly, they are rendered unsafe to drive.
  
• More than 70% of repaired cars are less valuable than they were prior to the loss.
  
• On average, consumer’s diminished value amounts to more than 30% of the car’s pre-loss value.  A typical car with a pre-loss value of about $20,000, suffering $10,000 or more in damages and average quality repairs, will lose approximately $6,000 when sold with full disclosure. [more info]
  
• On a scale of 1 to 7, (1 representing true pre-loss condition and 7 being junk) the body shop report card shows the level of repair quality at 4.5 in the tri states of Ohio, Kentucky and West Virginia.
  
• Consumers will lose OEM warranty coverage they paid for, and their cars will no longer qualify for inclusion in manufacturer pre-owned certification programs.

For more than 10 years now, I have been working with consumers and their attorneys to document poor quality repairs and calculate diminished value to cars, trucks, motorcycles, and motor homes.  We have witnessed first-hand, and it probably shouldn’t surprise you to learn that insurers often write auto damage estimates for half of the actual cost to repair a car, hoping a claimant and his/her attorney will be none the wiser.  Body shops readily agree to repair for the lower amount, just to have the work – then they cut corners to make it profitable.  But, when the full measures of damages to vehicles are considered, attorneys report that their potential to recover a larger amount of money for bodily injuries increases significantly.  Ask yourself, would it be easier to substantiate bodily injuries with $10,000 in property damage as opposed to $5,000 in damage?

*Depending on inspection location, travel costs my be incurred

content & design 2002-2008 David Williams and SafeCollisionRepairs.com

About Safe Collision Repairs

For more than ten years, David Williams of Wheelersburg, Ohio's Safe Collision Repairs has worked with consumers and attorneys in the tri-states of Ohio, Kentucky and West Virginia to expose unsafe auto repairs and maximize recovery on auto insurance claims. Some of the company's services include Post-Repair Inspections, Prepurchase Inspections, Auto Damage Assessments, Lemon Law Investigations, Expert Court Testimony and Diminished Value Calculations using an advanced version of Network Information Communication's WreckCheck program.

Inquiries can be directed to: Safe Collision Repairs David A. Williams Post Office Box 70 Wheelersburg, Ohio 45694 (740) 456-1111 (740) 355-4056

Disclaimer

The content expressed on this website and in the article above represents the opinions of David A. Williams. Williams is neither an attorney nor public insurance adjuster, but is an expert, consultant, and writer specializing in the field of automotive collision repair and valuations. The information provided herein is not intended to be a substitute for legal or insurance advice. Because collision repair is a continually evolving science, any text, materials or links found herein are provided without claim or guarantee to their accuracy or completeness.