Elgin business assists auto accident victims with diminished value

An interview with Kenneth J. Klein, owner of Consumers’ Auto Detective in Elgin.

Q: Describe your business. What do you do?

A: We help people who were victims of an auto accident get the money they are entitled to in diminished value. After a car has been involved in an accident, even after it has been repaired, it has lost value simply by virtue of being in that accident. This is referred to as “diminished value.” This can be a significant amount of money, usually a minimum of 20 percent of the retail value of the car. The more expensive the car, the more money is involved. At Consumers’ Auto Detective we inspect the vehicle for appearance, function and safety as well as value, assess the “diminished value,” provide a comprehensive report and, if necessary, are available to provide expert testimony. Let’s face it, no one wants to buy a car that has been wrecked, and no one can restore a vehicle’s pre-accident value. With today’s high prices for new and used cars along with CarFax and similar vehicle history reports, collecting that lost or diminished value is more important than ever.

Q: What made you start your business?

A: I started Consumers’ Auto Detective for several reasons. First, the general public usually has no idea that diminished value is money they legitimately have coming. Second, many lawyers don’t mention diminished value to their clients or simply don’t want to deal with it. And insurance companies won’t mention it or will actively discourage pursuing diminished value. Most people feel that they have no option but to accept what the insurance companies tell them. We’re here to tell them they have options.

Q: What has been the most difficult obstacle in running or starting a small business?

A: Getting the word out to people that there is money being left on the table that is rightfully theirs. It is a simple concept that if someone hits your car they are responsible to return it to its pre-accident condition. Because it cannot be restored to its pre-accident value one is owed compensation. Simple fact is a used car purchaser will always ask two questions: 1. How much do you want? And, 2. Has it ever been in an accident? Not necessarily in that order. If they get a “yes” to the accident question they may not be interested at any price. Additionally, many attorneys, although one does not necessarily need an attorney to collect, are aware of diminished value but fail to inform their clients of the potential for recovery. Do not be afraid to ask.

Q: What do you enjoy most about operating your business?

A: Easy answer; helping people. Whether it’s determining the quality of a repair or helping secure a diminished value claim, we help people by providing expert opinion. Recently, one of our clients had a car with a retail value of $40,000. It was hit by another car and was repaired at a cost to the insurance company of $21,000. We inspected the car and provided a report that estimated the post accident, post repair value at $21,500. Because of our report our client received a check for $18,500, the full diminished value payment.

Q: Is this what you pictured yourself doing when you were young?

A: I always loved cars, as a kid I wanted to fix wrecked automobiles. I went to a trade school, got a job as an apprentice, worked at my craft. I climbed the ladder and worked hard at every job from car wash to shop manager to shop owner.

Q: If you could give one tip to a rookie business owner, what would it be?

A: Do something that you are passionate about. Running your own business means a major investment of your energy and a belief in what you are doing will keep the fires burning.

— Kim Mikus

Ÿ Every Monday we feature a small, suburban business. We want to hear about yours. Contact us at kmikus@dailyherald.com.

Business: Consumers’ Auto Detective

Address: 215 W. Chicago St., Elgin

Owner: Kenneth J. Klein

Year business started: 1999

Web address: www.autodetective.org