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E46 (1999 - 2006)
The fourth generation 3 Series (E46 chassis) was introduced in 1999 and set the standard for engineering and performance during it's years of production including being named to Car & Driver's 10 best list every one of those years! ! -- View the E46 Wiki

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  #1  
Old 02-21-2006, 12:55 PM
vimal vimal is offline
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Mein Auto: Nissan Maxima
325i accident - depreciation value from insurance?

Hi,

I had a small accident last week.
A guy from behind hit my car, while trying to pass me and scratched the rear left.

My friend said that since my car was involved in an accident, it will have some depreciation. He also said that I can claim that amount (value depreciated) from the insurance of the guy who hit me.

Anyone had such an experience, and can you tell me how much should I bargain for as depreciation value?

My car has scratches in the rear bumper and the hood above that. Most probably I guess body shop will repair them and not replace them, but Iam not sure.

Its a 2005 325i.
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  #2  
Old 02-21-2006, 01:19 PM
miztuhdan miztuhdan is offline
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Location: Atlanta
 
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Mein Auto: '05 M3 '05 ZHP
I believe it will lose value since it has to be repaired, not quite sure sorry!
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  #3  
Old 02-21-2006, 02:02 PM
gesoffen gesoffen is offline
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Industry jargon is "diminished value" or "dimunition of value". A search here and on google should bring up plenty of info.

I've gone through this process before (on my MCS) and am getting ready to go through it again on my 325it. There is little precedent for "diminished value" claims so there is little in the way of concrete guidelines - not to mention each insurance company has their own procedures and guidelines. Assuming your claim against the at fault's insurance company was handled by your insurance company (i.e. you filled the claim against your policy and let your insurance company reclaim repair/rental/deductable costs), I'd talk to your insurace company about your intent to file a DV claim. They may or may not be willing to act on your behalf. You may also consider talking to your leinholder (if there is one) as they obviously have a vested interest in the value of your car.

If you plan on going it alone, I'd look into hiring an appraiser to assess the value of the vehicle and the impact the accident had on its pre-accident value. This could be as simple as a trade in assessment at your local dealer comparing value pre accident disclosure vs. post. Regardless, be prepared to get a few independent appraisals and be prepared to pay for someones time to do so (i.e. don't do it under the guise of actually trading in your car in order to get the appraisal for free).

Once you have that info in hand, you can process the DV claim against the insured. Unless you have lawyers on your side, be prepared to go through a lot of hassle to recover the full DV or be prepared to settle for a partial amount. The insurance company will make it difficult and confusing. They seem to be keeping this a closely guarded secret as it could cost them millions. This may be a good thing because what costs insurance companies millions costs policy holders more.

All that said, if its a minor scratch that has been repaired properly, there should be very little to no DV. In fact many vehicles sold as new will have minor finish repairs done due to damage during shipping. If replacement panels, frame alignments, airbag deployments, etc are involved, then a DV claim may have some merit.
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Last edited by gesoffen; 02-22-2006 at 05:44 AM.
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  #4  
Old 02-21-2006, 04:10 PM
Getsmmr Getsmmr is offline
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Chances are your ins. co will not entertain the claim - and it's not even worth the hassle on your part. If the other party's insurance is paying, your able to file a claim. Legal precedent has been set, but i believe only in GA. Google search will find it quickly. If it's minor, i wouln't worry about it - just keep the invoice from the body shop. Keep in mind most state law doesn't favor getting the claim.

good luck.
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  #5  
Old 02-22-2006, 08:10 AM
vimal vimal is offline
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Quote:
Originally Posted by gesoffen
Industry jargon is "diminished value" or "dimunition of value". A search here and on google should bring up plenty of info.

I've gone through this process before (on my MCS) and am getting ready to go through it again on my 325it. There is little precedent for "diminished value" claims so there is little in the way of concrete guidelines - not to mention each insurance company has their own procedures and guidelines. Assuming your claim against the at fault's insurance company was handled by your insurance company (i.e. you filled the claim against your policy and let your insurance company reclaim repair/rental/deductable costs), I'd talk to your insurace company about your intent to file a DV claim. They may or may not be willing to act on your behalf. You may also consider talking to your leinholder (if there is one) as they obviously have a vested interest in the value of your car.

If you plan on going it alone, I'd look into hiring an appraiser to assess the value of the vehicle and the impact the accident had on its pre-accident value. This could be as simple as a trade in assessment at your local dealer comparing value pre accident disclosure vs. post. Regardless, be prepared to get a few independent appraisals and be prepared to pay for someones time to do so (i.e. don't do it under the guise of actually trading in your car in order to get the appraisal for free).

Once you have that info in hand, you can process the DV claim against the insured. Unless you have lawyers on your side, be prepared to go through a lot of hassle to recover the full DV or be prepared to settle for a partial amount. The insurance company will make it difficult and confusing. They seem to be keeping this a closely guarded secret as it could cost them millions. This may be a good thing because what costs insurance companies millions costs policy holders more.

All that said, if its a minor scratch that has been repaired properly, there should be very little to no DV. In fact many vehicles sold as new will have minor finish repairs done due to damage during shipping. If replacement panels, frame alignments, airbag deployments, etc are involved, then a DV claim may have some merit.
This is very helpful . Thanks.
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  #6  
Old 02-22-2006, 08:11 AM
vimal vimal is offline
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Quote:
Originally Posted by Getsmmr
Chances are your ins. co will not entertain the claim - and it's not even worth the hassle on your part. If the other party's insurance is paying, your able to file a claim. Legal precedent has been set, but i believe only in GA. Google search will find it quickly. If it's minor, i wouln't worry about it - just keep the invoice from the body shop. Keep in mind most state law doesn't favor getting the claim.

good luck.
Thanks, I just spoke to the other party's ins. They accepted responsibiity for the accdt.
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  #7  
Old 02-22-2006, 10:18 AM
dm5x dm5x is offline
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Mein Auto: 325
Quote:
Originally Posted by vimal
Hi,
My car has scratches in the rear bumper and the hood above that. Most probably I guess body shop will repair them and not replace them, but Iam not sure.
Post pictures of the damage as well as the final bill from the body shop. If they just replace or repaint the bumper, you're not likely to get anything in terms of DV. If they have to paint body panels above that, you may have a claim if they can't do a proper blend. Rather than worrying about DV at this time, I would be concerned with which body shop handles the repair, and exactly how they are going to work on the body panels.
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