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The decision to repair or replace
your vehicle should NOT be made without evaluating the
entire property damage claim, which includes:
- Pre Loss Value
- Salvage Value
- Cost of Repair
- Loss of Value
- Loss of Use
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Pre-Repair Inspection
After an injury it may be to your benefit to hire an independent
appraiser that is working for you. A full and complete estimate
of ALL necessary repair operations to restore the vehicle to Pre-Loss
Condition should be evaluated and documented. Additionally,
your loss in market value or diminished value should be evaluated
as part of your repair decision. The accuracy and thoroughness
of your estimated cost of repairs directly effects YOUR decision
to repair or replace the vehicle.
Example
You have a vehicle worth $15,000 and the cost of repairs
is estimated at $7,000. If the estimate is accurate and thorough
the vehicle should be repaired (in most states if the cost to
restore your vehicle to Pre-Loss Condition is under 75% of the
value of the vehicle the election of repair is chosen). After
repairs you should have your Loss in Market Value assessed as
part of your total loss. - BUT - If the $7,000 cost of repair estimate is increased with a supplement
(an additional amount needed to repair the vehicle - found after
repairs have begun) by $2,000 and your Loss in Market Value is
around $2,500 - YOUR VEHICLE SHOULD HAVE BEEN TOTALED
or Replaced and NOT repaired. An accurate estimate of the cost of repairs is KEY and
can eliminate much of this issue in the beginning of the process.
It is important to have someone working for you.
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