What is Insurance Related Diminished Value

This loss is based on remaining flaws, defects, and damage, which the insurer had neglected to address. When an insurer negotiates the settlement of an automobile damage claim, they will typically provide an estimate of repairs, which outlines all specific procedures, parts, and materials that they are willing to pay to the claimant or insured. This itemized listing of insurer authorized repairs will be generated by one of the following entities:
An “in-house” appraiser, who is hired as a full time employee of the insurer, then trained to assess collision damage in accordance with policy provisions.
An “independent” appraiser who is hired as a subcontractor to assess the damage on behalf of the insurer, who also follows insurer guidelines.
An employee of a “Direct Repair” body shop, who agrees to prepare the assessments using the guidelines established by the insurer in exchange for consumer referrals from the insurer.
In some cases, the insurer will offer to pay based on the lowest of three estimates. This will cause the level of compensation to be based upon the estimator with the least experience, inspecting the vehicle for the shortest time, using the poorest repair techniques, and potentially overlooking the most damage.