Wednesday, 20 January 2016 17:54

Auto Damage Experts Warns Against Insurers Using CARFAX to Resolve Diminished Value Claims

 

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According to Auto Damage Experts, Inc. (ADE), a national insurer has attempted to employ and utilize erroneous information as a means of attempting undervalued settlements in claims for diminution in value.

In a recent correspondence to a consumer/claimant, an Allstate Insurance claims person offered a diminished value claim settlement supported by information obtained from a portion of CARFAX vehicle history report referred to as “History Impact.”

Content of the insurer’s letter is as follows:

“Enclosed for your records is a copy of your vehicle’s CarFax Vehicle History Report which indicates the value of your vehicle is worth an amount + $60.00 above retail book value.”

CARFAX had augmented their Vehicle History Reports with what they refer to as “History Impact.” In a July, 2010 reply to ADE’s inquiry in this regard, CARFAX stated in part:

“The CARFAX History Impact is not the same as diminished value.”

The CARFAX History Impact is a tool that analyzes millions of used car transactions to measure how the reported information impacts the value of a particular vehicle.

ADE is concerned whereby this information may be used to harm consumers and would like to see CARFAX state within their reports that the “History Impact” does not constitute diminished value and should not be used as a basis for the settlement of such claims.

For more information in this and other auto damage and repair related issues please visit the ADE website- www.AutoDamageExperts.com 

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