Is the insurance required to disclose how to determine the DV?

by LOU

After I demanded the diminished value, my insurance threw out a little more than $100 without explanation. Then I requested the insurance to explain how they determined the diminished value.

The claims rep. did not disclose the facts they used but just wrote the diminished value amount was calculated taking into consideration NADA pre-loss value, vehicle mileage and severity of damages from this loss.

We calculated the amount paid based on current tools and resources available and recognized by the state of Georgia. Is the insurance required to disclose the facts such as the value, mileage, modifier of the severity of damages they used to calculate the diminished value amount after the insured requested it or they can refuse to disclose it?

Answer:


Hello Lou,

They are not required per Georgia regulation, but they must be reasonable. $100 is not being reasonable, they probably want to put the burden on you to show that your diminished value is more than that. Go to a dealership and ask them if they would put on writing how much they would take your vehicle in a trade. If they would/ how much they would take it without the accident and how much with the accident.

The difference should be your diminish value. You should do this at couple of different places.

This is not the only way to show diminish value, and the insurance company might refuse to take it into account, in which case you should consider talking to a lawyer and taking legal action. Here is an article on the subject:

http://www.auto-insurance-claim-advice.com/diminished-value-claim.html

Good Luck,

http://www.auto-insurance-claim-advice.com

Follow Up Question

Thank you for your reply.

You said, “They (insurance company) are not required per Georgia regulation, but they must be reasonable. “ I am trying to exam whether the DV they determined is reasonable or not.

Do you mean the insurance is not obligated to disclose the NADA pre-loss value, vehicle mileage and modifier of the severity of damage they used to determine the diminished value, even if the insured has requested those information?

Answer:


No. What I mean is that they have to show how they are coming to that value. Reasonable means "open and clear", they cannot tell you a number and not back it up. This is good as nothing.

Remember, you are their insured, they have a FIDUCIARY duty to you, which means they have a duty to inform you, act in good faith, and protect YOUR interest.

Trying to keep anything hidden from you is not in compliance with that. If you have issues, you need to report them with the department of the insurance.

Good Luck,

http://www.auto-insurance-claim-advice.com