Unscrupulous auto repair companies and insurance companies can easily deceive the uninitiated. It is common for them to use confusing terms to convince consumers they are receiving the best possible repair on their vehicle. Diminished Value Carolina defines the main confusing terms you may find when your vehicle is in need of repair.
Main Terms You Should Know About Vehicle Value and Quality Repairs
Unlike attorneys and legislators, the average consumer may not understand how much words matter. Pay attention to the terminology used by your mechanic or insurance adjuster because it can say a lot about the quality of the service.
Diminished value is the difference between your vehicle’s market value before the accident and after it has been repaired.
Recommended Repair Partners
Your insurance company may provide a list of repair shops or body shops. Although insurance companies cannot dictate which repair shop you use, they will often try to direct you to one that suits their liking, for various reasons. This is called “steering” and should be reported to the local BBB and an attorney.
This is when a vehicle is so badly damaged in a crash that repairing it would cost more than replacing it.
An OEM (Original Equipment Manufacturer) part is the only part you should allow on your vehicle. These parts are made by the official vehicle manufacturer and will have the best fit and durability.
Aftermarket Parts Parts
manufactured by third parties do not meet the same specifications as OEM parts. The parts are also called “Like Kind and Quality Parts (LKQ),” “Quality Replacement Parts (QRP)” and “Economy Parts.” You are not obligated to allow them to be used.
Pre-Loss Condition’ refers to the condition of your vehicle before an accident that required repairs. Insurance companies must repair your vehicle to this standard.