Diminished Value Appraisals – They’re Different?

Here’s my license:

 Determine if they have the right experience.

It’s common for auto appraisers to lack actual experience in determining the overall value of a vehicle, especially if they come from automotive areas where overall valuation is not used. We’ve encountered appraisers who claim to have produced tens of thousands of appraisals, only to find out that they did so as estimators at an auto body shop and have no real knowledge of a vehicle’s overall value. In Oregon, someone with at least two years’ experience as an auto body estimator can obtain a vehicle appraiser’s license and be called an “appraiser.” However, it’s important to note that some individuals may falsely claim to have worked as an appraiser for decades when they’ve never determined the overall value of a vehicle before working on diminished value claims. It’s crucial to remember that diminished value is about the overall value of the vehicle, not just the cost of repairs.

Another type of appraiser we run into is the auto adjuster appraiser or the appraiser who works very closely with the insurance companies. Usually stating they have inside information and contacts to “beat the system”.  Again, most have little to no actual previous experience valuating vehicles.

 Determine who they may really be working for.

 Do they actually Testify?

Many DV appraisal companies have crazy terms for testifying. Many start charging $400.00 from the time they leave their office, until the time they get back. In Portland Traffic, that could easily cost you $1,200 to $2,500 just for a few minutes of testimony. Others may state there is a minimum of 4 hours at $400.00 and hour. With depositions as much as $5,000. Most of this is just so they can get out of testifying as many are afraid they’ll perjure themselves. I’ve testified in many different types of cases. Even Victim Restitution cases for the District Attorney.

 Have Your Vehicle Repaired

In Oregon, you do not have to use the auto collision body shop that the insurance company recommends. If they try to make you, this is considered steering and is illegal in Oregon. Choose a reputable shop. I suggest not using a shop that has an insurance company representative on the premises as you may not be the person that the shop is trying to please. 

Request OEM parts is possible. Beware, as the majority of auto body shops will have you sign paperwork stating they can use USED, Non-OEM and Aftermarket Parts on your car or truck without your permission. If required to sign anything, make sure to read the information carefully and if there is a clause allowing them to use USED, Non-OEM and/or Aftermarket Parts request that be taken out of the agreement.

Although many auto appraisers want you to contact them after the repairs have been completed, I highly suggest you contact your chosen appraiser ahead of time. Having an inspection before the repairs start can help the appraiser establish if there was a prior collision to your vehicle. In Oregon, an auto dealer can sell you a car with up to $1,000.00 in warranty cost repairs without having to disclose the repairs to you 2015 ORS 650.155¹. This could translate to thousands of dollars in retail repair costs. I’ve seen this many times where the owner has no clue their car was previously damaged and it can severely affect how quickly and for how much you can settle for.

If you don’t want to have an appraiser involved yet, I advise you to take as many pictures of the vehicle immediately after the loss as possible. Photograph the front, rear, sides, inside trunk, engine, tires/wheels, odometer, vin plate, the seats, headliner and carpets. You never know when you’re going to be in another accident or if the car or truck can be damaged at the collision center while your repairs are in process.

Once your vehicle has been repaired, have someone other than yourself look closely at the repairs. Are the gaps uniform? Are they pinched or wider in spots? Are there bolts or nuts that have broken paint? I’ve found many bad repairs as I inspect vehicles over the years including:

• Fraudulent repairs where a shop states they did something on the estimate, but they didn’t.
• Bad repairs such as Orange peel, dirt in paint, bad welds, not applying paint or corrossion resistant finishes or seals.
• Improper determination of repairs, such as missing parts that were damaged.

 Prepare Evidence of Your Loss of Value.

In Oregon, the burden of proof is on you. This normally means that you have to supply evidence that you have actually lost value and not been made whole. There are several ways you can establish that you have suffered a loss of value, including preparing evidence yourself. Although, we don’t advise it, as it may appear bias. Most insurance companies will request that you submit a diminished value appraisal from an independent auto appraiser licensed in the State of Oregon. There are many appraisal firms online including appraisers who receive the majority of their work from the insurance companies, similar to insurance companies’ “preferred repair shops”. 

There are companies who advertise heavily and may produce poor quality reports that may not establish credible evidence. Most are “arbitrary” values based on the car appraiser’s opinion. Unlike Real Estate Appraisals produced in Oregon, that must follow USPAP standards, there is no specific law that states that an auto appraiser must follow any standards when preparing their appraisal. Because of this, sometimes we see very low quality DV reports that fail to produce any legitimate evidence to prove a claimant’s diminution of value.

The better the appraisal, the better the chance of the insurance company accepting the credibility of the appraisal and paying the claim faster and for more money. Just because a company prepares the appraisal the same day or within 24 hours of the assignment, doesn’t mean you’re going to receive a faster settlement. Normally the opposite happens. Insurance companies come up with new objections monthly, the more objections addressed in the appraisal, the better the chances that the objection can easily be overcome instead of becoming a reason for the insurance company to make a low offer or even denial.  Which, could cause you to go to court or arbitration instead of settling quickly and easily.

 Submitting your claim if under $10,000.00

You now have to submit a demand with the attached evidence of your loss of value to the at-fault driver or their insurance company. We supply sample demand letters with our appraisals. In Oregon, the recipient of a demand has 30 days to reply with a “Best Offer” under ORS. 20.080. This ordinance states: