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maxcat
01-19-2006, 04:35 PM
:bawling: My wife crashed her 1 week old TL today. Everyone was okay but the accident was her fault. Has anyone had any experience with a diminished value claim? A general internet search came up with multiple companies that say theyare able to help with a claim and represent you on your behalf with the insurance company. They have some interesting stats regarding buyer aversion to previously damaged cars no matter how good the repairs.

There are also several good articles that I found at MSN money regarding diminished value. I live in Florida and according to 1 of the MSN articles it is 1 of 14 states that allow for diminished value claims.

Has anyone had any experience, good or bad, with a diminished value insurance claim?
If so, any recommendations on any of these companies that represent auto owners?

Thanks for any replies.

chuck92103
01-19-2006, 04:42 PM
No way to tell how much the car is diminished in value until it is sold. And then, the affect of the wreck on the sales price is subjective.

The words "diminished value" have been blurted out for years, but you will be hard pressed to utilize this language in any court or with any insurance company when it comes to a car.

I am confused since your wife crashed her car and you said it was her fault. Are you suing yourself? :dunno:

wwb4
01-19-2006, 04:58 PM
Yeah, I'm a bit confused too. Who are you suing? :dunno:

LA525iT
01-19-2006, 04:59 PM
Good luck getting reimbursed for diminished value on a 1st party claim.

maxcat
01-19-2006, 06:06 PM
No, we are not planning to sue ourselves. The diminished value, if paid, is part of the insurance settlement.

X amount of dollars for body work labor
X amount of dollars for parts
X amount of dollars for rental car reimbursement
X amount of dollars for diminished value A/K/A loss of value
Etc.

According to the articles that I read on MSN money a car can lose up to 18% of its value once it is put into the systems such as Carfax as a damaged car. Since the car is new and we've already lost $4,000 +/- in depreciation by driving the car off of the dealers lot, I hate to have an additional loss of value due to the accident.

My research shows that first party claims can be paid and I hope that is the case with our mishap. Thanks for the replies.

chuck92103
01-19-2006, 07:26 PM
If insurance companies did in fact pay for diminished value, our rates would be a lot higher.

If you get your carrier to pay, good for you, but I would be surprised.

philippek
01-19-2006, 07:37 PM
No way to tell how much the car is diminished in value until it is sold.
:stupid:
Until then the question is moot.

Biff Trout
01-19-2006, 07:56 PM
I cannot speak for all states but most have ruled that collision coverage does not include reimbursement to the insured for diminished value resulting from damage to the vehicle. A claim under collision is a 1st party claim as pointed out by LA525iT. It does not matter whose fault it is; only that you are seeking reimbursement under your own collision coverage.

On the other hand, if are attempting to collect from another party who is at fault (a 3rd party claim), most courts recognize that you are entitled to be put back into the same position that you were in immediately prior to the accident. Accordingly, you are generally allowed to collect diminution in value FROM THE AT FAULT PARTY on 3rd party claims.

Check with someone familiar with Florida law - my guess is that yo will not be able to collect the diminution in value. Focus on getting the car repaired at a collision center of your choosing with maximum replacement of damaged parts with new parts vs. repair of damanged parts or worse yet, replacement of damaged parts with used parts. Do not use a center that does lots of work for your insurer as they will be less likely to put up a fight for new parts with an insurer who feeds them lots of cars to repair.

kc5
01-19-2006, 08:29 PM
Biff is correct. :stupid:

Bruce
01-20-2006, 05:43 AM
A friend of mine works in claims for State Farm...in Texas you can't be at fault and collect diminshed value.

adgrant
01-20-2006, 08:44 AM
The best protection against diminished value or other unforseen deprecation problems (e.g Ford Explorer roll overs) is to always lease your car.

chuck92103
01-20-2006, 08:52 AM
The best protection against diminished value or other unforseen deprecation problems (e.g Ford Explorer roll overs) is to always lease your car.

By doing a lease loop, you are essentially paying extra for the diminished value insurance.

adgrant
01-20-2006, 09:15 AM
By doing a lease loop, you are essentially paying extra for the diminished value insurance.

Of course, extra insurance always costs more. You are not just getting diminished value insurance though. You get gap insurance (protects you if the car is stolen or damaged beyond ecominc repair) and insurance against external events effecting the value of the car (e.g. Ford Explorer roll over problems, new model launches, gas price increases changing tastes, old lady crashes Audi and sues for "unintended acceleration", etc etc).

govtec
01-20-2006, 11:56 AM
The best protection against diminished value or other unforseen deprecation problems (e.g Ford Explorer roll overs) is to always lease your car.

i think it should be factored into lease or buy decision but should not heavily rely on one factor, unless it's a pos domestic car.

iove75
01-20-2006, 08:24 PM
What a coincidence. My latest renewal with Statefarm has an amendment that specifically excludes diminished value claims. Not sure if they would have paid it before but even if you were to pursue the diminshed value claim, the expense and the hassle of attorney, headaches and court costs would swallow your claim. You can ask and the most they can do is say no.

But do let us know how it works out.

maxcat
01-21-2006, 05:43 AM
Thanks for the replies and I will post updates as to how this works out since most every body is in an accident or has family/friend in an accident at some time and I may find this is worth pursuing.

I did get some information from a woman I used to work with who did get paid for diminished value in an accident that was not her fault. However, it was not easy to get and she was offered either $500 or the option of finding an independent adjuster to come up with a diminished value and try to negotiate a higher number. Her husband works for an insurance company and spoke to a couple of their staff adjusters who recommended they take the $500 since most independent adjusters do work for various insurance companies and don't have much incentive to be an advocate or put up a huge fight on the car owners behalf vs. the people (insurance companies) who send them a steady stream of work.

As someone posted it doesn't hurt to ask. All they can do is say no.

As for progress on the claim so far there is none. I called in the new car information to my agent on Thursday morning and my wife crashed at lunch time Thursday. The car is not showing up in the insurance companies system yet, takes 24-48 hours, so no visit from an adjuster yet. Meanwhile the clock has sarted on the rental car.