- Inherent DV: Describes a general conviction that a wrecked vehicle, which is then repaired, is less valuable than a vehicle that has never been damaged. This belief is unaffected by having information on the scope of the repairs or by whether there are any visible signs of repair. It is the perception that any significant damage reduces a vehicle’s worth.
Claim Related DV: This refers to any instance where an insurer's action or practice results in an inferior vehicle repair. This is subjective because parties can argue over what is meant by inadequate repair. Insurer actions that could trigger claims-related DV include an insurer's:
- insistence upon the use of selected auto repair shops
- requirement that a repair facility use after-market, rather than original, equipment and manufacturer parts
- refusal to pay for additional repairs identified by a repair shop
Repair Related DV: This refers to any instance where a repair shop's action or practice results in an inferior vehicle repair. What is considered a below-standard result that is created by a repair shop may involve:
- completed work which includes below standard labor or improper procedures
- completed repairs where below-standard parts were used when an insurer authorized standard parts
- incomplete repairs when an insurer authorized that all needed repairs be performed.