Insurers Routinely Undervalue DV Claims — Here’s the Truth Behind the Numbers

After a collision, even if your vehicle is fully repaired, its resale value often takes a major hit. That loss in value is known as diminished value (DV), and it can amount to thousands of dollars, especially on newer vehicles, luxury models, or those with structural or frame damage.

While you’re entitled to recover that loss when you’re not at fault, most insurers either deny diminished value claims outright or offer drastically reduced settlements. The reason? They rely on software platforms and internal processes that are neither independent nor market-transparent.

The Hidden Influence of CCC and Mitchell

Most insurance carriers rely on just a few key vendors to produce valuation data: CCC One, Mitchell WorkCenter, and Audatex. These platforms are not neutral. They are industry-owned tools built to automate claims processing — not to deliver objective market valuations for consumers.

In 2008, the Federal Trade Commission (FTC) filed suit to block a proposed $1.4 billion merger between CCC and Mitchell. The FTC warned that combining the two companies would eliminate meaningful competition in both collision estimation and total loss valuation (TLV) software markets.

“There is no doubt that this merger would reduce competition… and ultimately would lead to higher prices and less innovation for consumers.”
— FTC Bureau of Competition, 2008

The merger was abandoned — but the market today remains exactly what the FTC feared: highly concentrated, opaque, and unchallenged.

State Farm and the “Typical Negotiation Adjustment” Controversy

In a recent federal case (Williams et al. v. State Farm), the court reviewed allegations that State Farm instructed its valuation vendor to apply a “typical negotiation adjustment” — a percentage-based reduction (4–11%) applied to comparable vehicle prices to lower total loss settlement offers.

• The adjustment was not disclosed in the policy
• It was not based on actual sale prices or market negotiations
• It was applied uniformly, regardless of location, time, or vehicle type

The court denied State Farm’s motion to dismiss, finding the plaintiffs’ fraud and consumer protection claims plausible — particularly because no state regulation authorized such an adjustment.

These same valuation tools and adjustment logic are often used to suppress or deny diminished value claims, even when policyholders submit legitimate documentation.

Why DV Claims Are So Often Denied or Lowballed

Even when a claim is valid and properly submitted, insurance companies frequently argue:

• “Your vehicle was restored to pre-loss condition.”
• “There is no measurable loss in value.”
• “Our system shows zero diminished value.”

But these positions often rely on internally generated estimates using CCC or Mitchell, not actual market comparables or resale outcomes. These tools may exclude private sales, ignore branding history, and undervalue vehicles with structural damage — all factors that materially impact resale value.

Your Right to an Independent Diminished Value Appraisal

In most states, when someone else is at fault, you have the legal right to:

• Submit a third-party diminished value report
• Challenge the insurer’s valuation
• Pursue full compensation through negotiation, invocation of the appraisal clause, mediation, arbitration, or legal action

What you don’t have to do is accept a zero-dollar offer based on internal insurer math.

ClaimAccept™: Built for Diminished Value Recovery

ClaimAccept™ is the dedicated appraisal platform developed by Fair Claim Help to deliver independent, professionally prepared diminished value (DV) reports — built specifically to help you challenge undervalued or denied claims.

Each report includes:

• A market-based assessment reflecting real resale impact
• Analysis of accident severity, structural damage, and visibility on history reports
• Consideration of local comparables, OEM vs. non-OEM parts, and post-repair factors
• Clear documentation designed to support negotiation, arbitration, or litigation

While individual sales comps are not listed, each valuation reflects consideration of regional market behavior and accepted valuation methodology.

In many cases, the cost of your DV report can be submitted as part of your claim and may be reimbursed in a final settlement.

Don’t Let Hidden Algorithms Decide Your Claim

If your diminished value claim was denied, minimized, or never filed – you may still have options.

At ClaimAccept™, we provide :

• Certified, independent auto valuation reports
• Legally grounded documentation trusted by claimants and attorneys
• Expert-backed valuations when insurer estimates fall short

Eligibility reviews may be processed through a consumer advocacy organization to streamline intake and support.

ClaimAccept™ reports are based on fair market valuation methods and expert-certified appraiser analysis – never insurer-biased software.

About ClaimAccept™

ClaimAccept™ is the dedicated platform for certified diminished value (DV) and auto valuation reports.
Used by policyholders, attorneys, and insurance professionals nationwide — where permitted by law — our reports provide independent documentation to support fair market valuations, rather than low, auto-generated insurer estimates.