Wednesday, July 1, 2015

Accelerated Depreciation / Diminished Value FAQ

Accelerated depreciation FAQ

What is accelerated depreciation?

Accelerated depreciation, also known as "diminished value", is what happens to a vehicle after it has been damaged and then repaired.  Depending on the value and type of repairs, this depreciation can fluctuate.  For an in-depth explanation Click here.

Am I eligible to claim accelerated depreciation?

The laws and processes in which accelerated depreciation is determined varies depending on the location of the accident.  The following information pertains to British Columbia only.

The 2 components of an eligible accelerated depreciation claim are:
·          You are not at fault for the accident
·          There was another driver involved who is at fault.  There must be another person to name in the case of a lawsuit.  We have not seen success in accidents involving animals, hit and runs or vandalism.

Where do I start?

This depends on your situation, listed below are a few scenarios and the associated paths.

Scenario 1 - Your vehicle was involved in an accident where the following apply:
o    you were not at fault,
o    you were not injured
o    your insurance company is WILLING to pay accelerated depreciation

In these situations, you will need to hire an expert to assess the losses and provide a report which is given to your adjuster (our services). Ideally, your adjuster will accept the losses and compensate you for both the losses and the cost of the report.  We have seen this happen before, as recently as last week (June 2015).

Scenario 2 - Your vehicle was involved in an accident where the following apply:
o    you were not at fault,
o    you were not injured
o    your insurance company is UNWILLING to pay accelerated depreciation

There is where you would need to follow these steps - Do it yourself - Suing for accelerated depreciation

Scenario 3 - Your vehicle was involved in an accident where the following apply:
o    you were not at fault,
o    you were injured
o    you have chosen to hire a lawyer

Your personal injury lawyer would represent your accelerated depreciation claim at the same time as your personal injury claim.  Make sure your lawyer understands that accelerated depreciation is an important part of your claim, as some will not represent property losses

Scenario 4 – Your vehicle was involved in an accident where the following apply:
o    you were not at fault
o    you were injured
o    you have chosen not to hire a lawyer

In this situation, your adjuster may choose to accept an accelerated depreciation claim to minimize the potential risk of a personal injury lawsuit. Please refer to Scenario 2.

Links:

Online articles related to Accelerated Depreciation in Canada

Precedent Cases

The Fournier Auto Group Ltd. Provides Accelerated Depreciation reports:
Services - 
Services

Sample Report - Sample Accelerated Depreciation Report
For a free consultation call 778-908-2804 or Click here to submit a “Request for a free consultation with an IVE"


How to make a claim - Click Here