Diminished Value Stories From The Web

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Diminished Value Claim Experience

 Here’s the story: I live in a state that allows for diminished value claims and was rear ended around the beginning of December, other driver’s fault. He was insured with Nationwide. My car is currently listed on used car websites for around 20k and the damage totaled a little over 7k. There was no major frame damage, it was all cosmetic. The other drivers insurance paid for it directly and the work looks very good, I cant tell anything was done to the car.

Anyways after getting the car back I sent an email to their claims specialist stating that I wanted to file a diminished value claim due to the fact that the car now shows an accident on its record and was therefore worth less. A few hours later I got a call from a new person that handles diminished value claims. They stated that they would get back to me in about a week with an offer on the car. A few days later they offered $1500 and explained what factors go into that amount.

I talked to the dealer I bought it from and they said that an accident on the record of a car usually lowers its value by about 10%. So I emailed the diminished value claims specialist back stating that comparable cars are listed for 19-20k and I’d like to receive about 10% of the value of the car so $2000. The next day she said that they accept that offer and would be mailing a check with some paperwork to sign. And that’s where I’m at today.

Did I leave money on the table? I don’t know but I plan on keeping this car until its worth about $2k or less so it seemed fine to me. I had no interest in paying for a proper diminished value appraisal and having a long drawn out negotiation with threats of small claims court. A bird in the basket is worth 2 in the bush or something like that right? Most online research indicated to be ready for a fight with the insurance companies but maybe since they have been losing in court they realize that its now cheaper to make slightly more reasonable offers instead of low balling. 

I got some more info from an adjuster

 My wreck was not my fault (I was parked at the time) so I am dealing with the other driver’s insurance. Also, there was obviously no personal injury so things are simpler.

I just finished talking to folks at my insurance to get a feel for gereral protocol. I’ve also talked to several appraisers that I will have to deal with as I proceed. The outlook is good.

First, most insurance companies have specific language in their policies to not pay diminished value on your car if you are responsible for an accident.

However, if I am in an accident and it is my fault, my insurance will pay for diminished value for the other driver’s vehicle but the other driver has to ask for it. They will require the other driver to get an appraisal which will cost the owner several hundred dollars that is not re-imbursable, and negotiations start from there. For the vast majority of cars on the road, the diminshed value you might get is not much more than the appraisal fee. In my case, it is substantial.

Given this policy for my insurance company, I plan to ask the other driver’s insurance for diminished value. If they refuse, I will take the other driver to small claims court and represent myself. In my experience, small claims court bends over backwards to give folks like me the benefit of the doubt if a bunch of lawyers show up for the other driver. I will present in evidence 2 appraisals and a statement from my insurance company of what they would do in this situation. I think this will be a slam-dunk and the other drivers insurance will have to pay court costs and perhaps even my appraisal fees. I don’t have a lot of experience with small claims court but I have found that insurance companies want to settle after their client has been served with a summons to appear in court for a suit.

Given the information I have, I also don’t think I have to worry about my suit being declared frivolous and be responsible for the defendant’s attorney costs. So the most I will lose is about $400 in appraisal fees and court cost. 

Fighting ’til the bitter end!

 Amber had a fight on her hands after getting injured and suffering substantial property damages due to the negligence of another driver and yet she was STILL put through the ringer by the insurance company, even with an attorney on her side!   After submitting our diminished value report, she got a denial, which, like I said, is typical for this company.  Her attorney used our report and ended up putting her diminished value demand in with her injury in court and she settled for an amount that she felt was fair after much fight.  We see this often with a few of the bigger insurance companies and there is no “easy street” to coast down to get your claim settled.  Sometimes it takes digging in your heels and fighting for what you KNOW you are owed and hiring professionals that have the same mission you do.  Amber surrounded herself with a team that had her best interest at heart and she hobbled away with $3,000 and a little relief. 

If your attorney isn’t willing to point you in the right direction to get help with your property damage, GET A NEW ATTORNEY!  We work with lots of auto accident victims referred to us by attorneys who know the work we do and the results we have produced.

Audi A6 Diminished Value

 Scott’s Audi A6 Diminished Value success story is the kind we love to brag about! His repair shop sent him our way because they shared our same mission – to help auto accident victims get justice!  We took a look at his case and he was definitely owed a substantial amount of diminished value on his clean 2012 Audi A6 Quattro Premium.

 We inspected Scott’s Audi A6 and found that he was owed around $7300!  He submitted our USPAP diminished value report and had to be patient while his adjuster was out on vacation.  After waiting a week, one phone call to the adjuster did the trick and Scott became one of our latest diminished value success stories! 

 When you hire a trusted expert to be on your side, especially after a referral from a repair pro, you are likely to end up with a fair settlement with a little follow up and fight if you make sure to research the expert and ask the right questions (which we give on our website here).  Even when you get a denial initially, adjusters will often start offering something if you can provide the right argument.  Scott can attest to the fact that reasonable adjusters DO exist and settle their claims ethically and fairly 

Been in a Car Wreck?

Here’s something I wish I had known about when another driver plowed into my car, a car that was only five months old: diminished value.

The other driver’s insurance company paid to fix my vehicle, but just the fact that it had been in an accident diminished its value. Rightly so. It was no longer as sound. One former general manager says his dealership used to automatically offer 30 percent less for a trade-in if it had frame damage.

 But it wasn’t my fault. When I went to sell the car, the pros easily could tell that it had been wrecked and rebuilt. That other driver — or her insurance company — should have paid me for that. I couldn’t get as much for the car, so I didn’t have as much to put toward my next car.

Many people don’t think about the new, lower value of their vehicle in the aftermath of an accident. Instead, we just worry about how long it’s going to take for the body shop to fix the darn car so we can get back to our lives. If you have a newer vehicle or an expensive one, you must ask to be compensated for diminished value.

The insurance company won’t offer. Insurance companies try to avoid paying for diminished value.

 It’s important to pursue a diminished value claim right away, because most states have a statute of limitations on property damage claims, often three years.

Most insurance contracts prevent you from making a diminished value claim against your own insurance company. Where you may succeed is by going after the other driver’s insurance company because you don’t have a contract with them. Plus, the whole point is that the accident wasn’t your fault, right?

If the other driver’s company resists, consider small claims court to collect diminished value. It should be a fairly easy case to prove: What was your car worth before the crash? How much less is it worth now because it was in an accident ??

Money for the diminished value of your property

Q: I had a wreck in January and I had only had my car a couple of months. It was brand new and the damage was around $10,000.00. They did not total my car but repaired it. Now, the insurance company wants to settle and I asked the adjuster about diminution in value and he said that wasn’t a law.

David, Tuscumbia, AL

A: I am sure that certain insurance companies have contracts with their insureds’ that specify what they will and will not pay. If you are making a claim against your insurance company for collision or comprehensive damage to your own vehicle, the contract (that you haven’t seen or read) between you and your insurance company will define what their obligation to pay is and is not.

If you are making a claim against someone else who negligently caused damage to your car and their insurance company is trying to tell you what the law is, don’t believe them.

The law of damages in Alabama is simple and straight forward and exactly what you think it should be. If someone through carelessness or negligence damages property that you own, you are entitled by law to the value of the property prior to the damage.

Everyone reading this, if given the choice between two identical cars except that one had been wrecked and the other not, would choose the car had not been wrecked. We all know that if you trade in a car that has been previously damaged, it is worth less as a trade in.

What you are really looking at is an issue of evidence and proof. If you can by the testimony of an experienced car salesperson or automotive appraiser, provide competent evidence of how much less your car is worth in its wrecked, repaired condition then the Court should award that amount of money for the diminished value of your property