TORONTO, Oct. 15, 2013 /CNW/ - As winter approaches, Canadian consumers, especially owners of 2008 Mitsubishi Lancers, are urged to be prepared for hazardous driving or it could cost them a lot in diminished value. Based on data obtained from the Insurance Bureau of Canada of the worst 10 models for collision claims between 1999 - 2011, 2008 Mitsubishi Lancers (Evolution) have had the highest collision rates.
"If such a vehicle was to have an accident and be repaired properly today, the owner would lose approximately $4,056 in diminished value" claims Viraf Baliwalla, developer of website MyCarIsWorthLess.com.
Diminished value is the loss in fair market value of a vehicle after a damage claim is registered on the vehicle's history report. Inherent diminished value is the amount of loss based solely on public perception that an accident vehicle, even if properly repaired, is not as desirable as one with a claims-free history. Inherent diminished value does not require a physical appraisal to establish a fair and reasonable valuation. If inferior parts or poor workmanship are involved, the value would be further diminished and such a valuation would require a physical appraisal. Diminished value can range from hundreds to thousands of dollars.
"In Canada, your own insurance policy does not cover diminished value" says Baliwalla. "However, the at-fault party's liability coverage is responsible for compensating the not-at-fault party for their loss".
Diminished value claims have been much more prevalent in the US, however they are starting to make their way into Canada with several claims having been won in the Canadian courts over the past few years.
"It's new territory in Canada and so people are having to take the matter to court to be compensated" says Baliwalla. "Typically, they are at small claims court levels so it is not a hard or expensive process. However, over time, we believe settlement will happen without court involvement. In fact, some insurance companies are considering additional endorsements which will cover diminished value."
A free step-by-step guide on how to claim for diminished value in Canada and other free resources are provided on the MyCarIsWorthLess.com website. The company is also in the process of establishing a free national legal resource directory for those that would like assistance with the small claims process.
Rounding out the Insurance Bureau's list of worst 10 vehicles for collisions, diminished value would be as follows:
|2005||Subaru Impreza WRX STi 4 Dr. AWD||$2,176|
|2002||BMW M3 2 Dr||$1,670|
|2006||Nissan 350Z 2 Dr Base||$3,142|
|2010||Ford F350 SD 4WD XLT Crew Cab||$3,875|
|2009||Dodge RAM 3500 4WD SLT Mega Cab 4WD||$4,525|
|2006||Chevrolet Trailblazer 4dr 4WD LT||$1,361|
|2009||BMW X6 4Dr AWD 35i||$5,726|
|2008||Mercedes-Benz GL320 4Dr AWD||$4,449|
|2001||Honda S2000 Convertible||$2,737|
MyCarIsWorthLess.com is a Canadian online diminished value calculator owned and operated by TheyWroteOffMyCar.com Inc., a consumer helpline for those involved in auto insurance claims.
For further information:
For media inquiries:
Viraf Baliwalla, President, TheyWroteOffMyCar.com Inc., (866) 249-5474 ext. 303 or [email protected]