Diminished Value Claim: real or unicorn?

[Stewie]

Originally Posted by Jawnathin

Is there a limit on the length of time to pursue a DV claim?

Yes. Usually there is a statute of limitations for property damage claims. It too ranges from state to state.

[Chimpo]

The person that caused the accident uses the same insurance company that I do so it was actually pretty easy dealing with them up until I brought up the DV claim, and then they immediately tried to sway me from going after it since it's so "difficult to prove the worth of my car before the accident."

I kinda see where they'd like to come from with that, but at the same time the accident happened, the damaged part of the car was fixed and everything is basically the same since it just happened and I literally just got the car back. I've already been compiling basics (price vs mileage vs etc) from autotrader / KBB on used '13 FR-S into an excel doc to come up with rough values for dealer trade in, private party values, etc etc. One thing I've found is that there basically isn't much of a trend in data between autotrader adds for private and dealer (R^2 of 0.067 and 0.018 respectively, aiming for 1). Basically a big blob of dots from high teens to low 20s.

I haven't signed any release yet other than saying I have no further medical expenses.

And sorry for the confusion. I did not pay $7500 out of pocket, that is the total paid by insurance to repair the car. What I meant was is that $7500 is only what the insurance company would pay, which is less than what the body shop quoted.

[Shady195]

Okay so I have been going through this myself.

Look up your state law, not all states have guidelines/laws regarding diminishing value. Here in NYS for example I am entitled to diminished value for up to 3 years after an incident.

THE OTHER DRIVER MUST BE 100% AT FAULT. YOU CANNOT CLAIM DIMINISHING VALUE ON A NO FAULT OR AN ACCIDENT THAT WAS SUSTAINED ON YOUR OWN DRIVING (Hitting a deer, a pole, your wife whatever). THE CAR MUST ALSO BE COMPLETELY FIXED.
I had not heard of it until a member here mentioned it, then a co-worker that same day mentioned it as well.

Your insurance company as well as the other parties will more than likely try and deny it exists. Be PERSISTENT, it's a real thing. Luckily the insurance company of the driver who hit me acknowledged that it does indeed exist and i was surprised to find out they even gave me the guidelines in regards to the paperwork I would need in order to submit the claim.

IT DOES EXIST. The insurance company will deny it however with enough pressure and threat of legal involvement will get them to change their tune.

Now, what you will want to do because it will greatly help your case; Look up KBB and NADA book value ALSO go to a dealer and figure out what they will give you for your car. If you're lucky a dealer may give you an on the spot number before they ever look at the car fax. EVEN IF THEY GIVE YOU A VALUE KNOWING IT WAS IN AN ACCIDENT ASK THEM WHAT IT WOULD HAVE BEEN WORTH TO THEM HAD IT NOT BEEN.

Ask them if they are willing to write up the paperwork to show what your car is worth, ask them to also state what it would have been worth had an accident not been shown. I was lucky and was able to get 2 dealers to do this for me, I asked nicely and made them aware of the situation.

I also have signed forms showing the value a dealer is willing to give me now along with KBB, NADA and BlackBook values without an accident showing.

In my case it was about an 1800-2200 dollar difference just because of an accident even though it was nothing more than needing a bumper replaced (A Bus backed over my car in a parking spot).

You will need proof that there is diminished value, get estimates and as much paperwork as you can such as printouts of KBB, NADA and even online offers from autotrader disclosing the accident and not disclosing the accident; the more examples the better even if their not all the same to at least show the diminished value does now exist.

THE INSURANCE COMPANY WILL THEN TRY TO BEND YOU OVER. There is some absurd formula some insurance companies use called the 17c formula, basically this will be their attempt to show you car is only now worth a few hundred less (in my case it would have only been 400 dollars vs the 1800 dollar difference in real world dealers would offer)

DONT LET THEM DO THIS. Push them, and if need be have your lawyer write them an official letter threatening legal action.

I am still in the process, but my co-worker who told me to peruse this in the first place put me in contact with a friend of his who is an insurance agent, he straight up told me to be persistant and have as much paperwork as I can possibly get showing estimates etc in the different values. Most people give up and think something is better than nothing but if you push them you should be able to get a real world figure that makes sense for your diminished value..

I apologize for my long drawn out post, hopefully it helps though.

[Stewie]

Originally Posted by Chimpo

The person that caused the accident uses the same insurance company that I do so it was actually pretty easy dealing with them up until I brought up the DV claim, and then they immediately tried to sway me from going after it since it's so "difficult to prove the worth of my car before the accident."

I kinda see where they'd like to come from with that, but at the same time the accident happened, the damaged part of the car was fixed and everything is basically the same since it just happened and I literally just got the car back. I've already been compiling basics (price vs mileage vs etc) from autotrader / KBB on used '13 FR-S into an excel doc to come up with rough values for dealer trade in, private party values, etc etc. One thing I've found is that there basically isn't much of a trend in data between autotrader adds for private and dealer (R^2 of 0.067 and 0.018 respectively, aiming for 1). Basically a big blob of dots from high teens to low 20s.

I haven't signed any release yet other than saying I have no further medical expenses.

And sorry for the confusion. I did not pay $7500 out of pocket, that is the total paid by insurance to repair the car. What I meant was is that $7500 is only what the insurance company would pay, which is less than what the body shop quoted.

You're going to want to consult an expert auto property appraiser that can provide a supported opinion on the value of your vehicle given the reported accident and likely frame damage that was repaired. He/she will need a copy of the final repair estimate/invoice with any/all supplemental estimates/invoices attached, photos of the damage, and then to inspect your vehicle post repair. If the estimate has a line item that says setup, measure, and pull...that means they had to get the unit-body frame realigned. Major loss in value. If any of the suspension was damaged and repaired as well, the value could be even more adversely affected.

Double check the language on the release you signed regarding the medical expenses and make 100% sure it said nothing about releasing their insured from any further liability from the accident for bodily injury and/ or property property damage.

[bodayguy]

This is why I decided to lease my FR-S. Diminished value is the biggest issue in those first three years and if someone hits me, I either pursue a DV claim or just plan to give the car back when the lease ends and it's the dealership's problem, not mine. I got hurt on my last trade-in because of a simple fender bender and it probably cost me $1500 in value. Would have pursued DV if I had known about it then!