Am I entitled to depreciation value?
Depreciation value is that sum of money which accounts for the decrease in the fair market value of your motor vehicle as the direct result of having been damaged in a collision even taking into consideration that your vehicle is repairable or is repaired. It is recognition that a vehicle which has been in a collision and is repaired is of less value than a similar vehicle which has never been damaged. In other words, it is a value of loss over and above the repair costs.
Deprecation is a very uncertain and subjective area and usually only applies to newer model vehicles. The amount of depreciation will also depend on the severity of the damage. If there is minor damage there probably is no depreciation. On the other hand, the more severe the damage the more likely depreciation is present. Depreciation in value, also called diminution of value, usually results when the title to your vehicle will be “marked” because you must disclose that the vehicle has been damaged when you sell it.
When negotiating with the adjuster we negotiate depreciation claims when the damage supports the claim. The value of a vehicle can be reduced just because it was in an accident. Most adjusters will not volunteer depreciation value; therefore, we will raise the issue if you have asked that we do so on your behalf and your vehicle will have a “marked “title. Generally, we will not be able to make a claim unless you have secured a written statement from an adjuster or appraiser that indicates that the vehicle has depreciated. It is not important that the estimator indicate an actual amount. Industry standard usually allows for some range in value of the depreciation. Unfortunately, some companies think because the vehicle is back in its prior condition then it has not depreciated.