diminished value
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1st Gear
Joined: Oct 2002
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From: NJ
diminished value
I was wondering if anyone is familiar with recouping future losses through a claim of diminished value.
After having the dealership repair my car extensively ($30k) from an accident caused by a careless driver, I realize the potential buyer pool will be limited if and when the time comes to sell or trade-in my C4S. Although the car looks and drives great, it would clearly be something I would disclose, and would expect to price accordingly.
Any comments, insight or experiences would be helpful to recover an inevitable loss.
Thanks
After having the dealership repair my car extensively ($30k) from an accident caused by a careless driver, I realize the potential buyer pool will be limited if and when the time comes to sell or trade-in my C4S. Although the car looks and drives great, it would clearly be something I would disclose, and would expect to price accordingly.
Any comments, insight or experiences would be helpful to recover an inevitable loss.
Thanks
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From: Manhattan
Check some earlier threads, but I would also suggest you send me a private message or whatever...I'm starting down the same road myself, and perhaps we can share strategies that are working.
First step seems to be talk to insurance, make sure repairs are flawless. Then work with them to get estimate on pre-crash value, then post crash. That last step is a bit fuzzy yet, but I'm starting the process now.
Good luck and let's stay in touch.
First step seems to be talk to insurance, make sure repairs are flawless. Then work with them to get estimate on pre-crash value, then post crash. That last step is a bit fuzzy yet, but I'm starting the process now.
Good luck and let's stay in touch.
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Joined: Feb 2002
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From: Boston, MA
i went through this when a poor woman on her way to get to daycare at the end of the day to avoid late fees T-boned my 1999 M3.
she caused almost $25k in damages.
it took 15 weeks for them to get all of teh parts from germany and to rebuild the car; i turned around and sold that turkey as soon as it was done. you need to get your insurance agent, if they're intrepid enough, or a lawyer, to act on your behalf to file for the diminished value and then they negotiate normally to arrive at a figure.
not pleaseant, but if you have the correct people on your side, it gets done and the person at fault & their insurance agency will blow you off until you get some legal representation.
she caused almost $25k in damages.
it took 15 weeks for them to get all of teh parts from germany and to rebuild the car; i turned around and sold that turkey as soon as it was done. you need to get your insurance agent, if they're intrepid enough, or a lawyer, to act on your behalf to file for the diminished value and then they negotiate normally to arrive at a figure.
not pleaseant, but if you have the correct people on your side, it gets done and the person at fault & their insurance agency will blow you off until you get some legal representation.
Racer
Joined: Dec 2001
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From: SoCal
My two cents: always, always, always try and get them to TOTAL your car!! Some insurers will resist, others will be more accomodating based on the type of car. "Diminished value" is much tougher to prove up, since the figures I seen range from 10% to as much as 50%!
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From: St. Louis
There have been several lengthy threads discussing this subject. Here's one to get you started which also includes my $.02:
<a href="http://forums.rennlist.com/forums/ultimatebb.php?ubb=get_topic&f=3&t=001740" target="_blank">Accident aftermath...what to do? </a>
Mark's advice to avoid the issue (& the diminished value) by having the car totaled is very sound, but perhaps too late for you. It is hard to believe that a car w/$30k in damage repairs could truly be as it was - including structural integrity.
<a href="http://forums.rennlist.com/forums/ultimatebb.php?ubb=get_topic&f=3&t=001740" target="_blank">Accident aftermath...what to do? </a>
Mark's advice to avoid the issue (& the diminished value) by having the car totaled is very sound, but perhaps too late for you. It is hard to believe that a car w/$30k in damage repairs could truly be as it was - including structural integrity.
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From: new york, new york
questions:
1) does seeking Diminshed value completely screw you with your future insurance - i.e. beyond whatever increase they assign for the claim on the accident.
2) what if the accident is "no-fault" (e.g. you drove over an ice patch and hit a tree - whatever), and you do not have another party to sue?
1) does seeking Diminshed value completely screw you with your future insurance - i.e. beyond whatever increase they assign for the claim on the accident.
2) what if the accident is "no-fault" (e.g. you drove over an ice patch and hit a tree - whatever), and you do not have another party to sue?
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From: Bay Area CA
$30K in repairs is easier to reach in our cars than you might think. An easy hit to my front quarter cost $17K in parts and $4K in labor--note this was all sheet metal repair! No damage to the mechanicals, except the oil cooler!
Car was fine after the repair but I sold it due to all of the stress of getting it repaired right.
DV on a Porsche is typically quoted at 20% of market value.
Car was fine after the repair but I sold it due to all of the stress of getting it repaired right.
DV on a Porsche is typically quoted at 20% of market value.
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From: St. Louis
[quote]Originally posted by Rob 97 993c2:
<strong>questions:
1) does seeking Diminshed value completely screw you with your future insurance - i.e. beyond whatever increase they assign for the claim on the accident.
2) what if the accident is "no-fault" (e.g. you drove over an ice patch and hit a tree - whatever), and you do not have another party to sue?</strong><hr></blockquote>
1) It shouldn't.
2) You are then dealing w/your insurer & recovery will be governed by the terms of your specific policy. Read the "fine print" to determine how covered losses are defined. It may be limited to the actual cost of repair.
<strong>questions:
1) does seeking Diminshed value completely screw you with your future insurance - i.e. beyond whatever increase they assign for the claim on the accident.
2) what if the accident is "no-fault" (e.g. you drove over an ice patch and hit a tree - whatever), and you do not have another party to sue?</strong><hr></blockquote>
1) It shouldn't.
2) You are then dealing w/your insurer & recovery will be governed by the terms of your specific policy. Read the "fine print" to determine how covered losses are defined. It may be limited to the actual cost of repair.
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From: Boston, MA
just read what Dan had posted on that prior thread.
um, i disagree with the person pressing for the "total" category on the car. there is no way. it's far cheaper to pay $30k to fix a car plus $5000 or whatever than it is to pay $50,000.
we're dealing with people who do algorithms on how to extract the most money and do the least coverage/least amount of work. fat chance, i say. work within their parameters and at the very least you'll get some money to cover "diminished value"; try to work outside their parameters and you'll just end up with nothing.
um, i disagree with the person pressing for the "total" category on the car. there is no way. it's far cheaper to pay $30k to fix a car plus $5000 or whatever than it is to pay $50,000.
we're dealing with people who do algorithms on how to extract the most money and do the least coverage/least amount of work. fat chance, i say. work within their parameters and at the very least you'll get some money to cover "diminished value"; try to work outside their parameters and you'll just end up with nothing.
Racer
Joined: Dec 2001
Posts: 390
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From: SoCal
[quote]Originally posted by blackdawg:
<strong>just read what Dan had posted on that prior thread.
um, i disagree with the person pressing for the "total" category on the car. there is no way. it's far cheaper to pay $30k to fix a car plus $5000 or whatever than it is to pay $50,000.
try to work outside their parameters and you'll just end up with nothing.</strong><hr></blockquote>
LOL! End up with nothing? So, what you are saying is, accept what the insurance company wants to give you or you won't get anything?? Last time I checked this was the US, not Russia.
There is no way? My advice was to TRY.....you lose nothing by trying. And I know MANY people who were able to convince their (or the other parties') insurance companies to total their car. Why, you ask? Because while they may pay out more in the short run, they get to keep the cars, which they then sell off to recoup some of their payouts. Then they can raise insurance rates based on the higher claim amounts.
If you look at a claim of $30K in repairs with NO mechanical damage on a car worth around $55K, they would possibly pay out LESS money to total the car and sell it. Fixing the car would cost them a total of $35K to $45K, depending on the diminshed value. If you didn't accept their diminished value figure, they risk being sued, and possibly subjected to a bad faith claim. If they paid the $55K, they could EASILY sell the car for $15K to $20K, given that there was no mechanical damage. If you do the math, it makes no difference to them money-wise.
<strong>just read what Dan had posted on that prior thread.
um, i disagree with the person pressing for the "total" category on the car. there is no way. it's far cheaper to pay $30k to fix a car plus $5000 or whatever than it is to pay $50,000.
try to work outside their parameters and you'll just end up with nothing.</strong><hr></blockquote>
LOL! End up with nothing? So, what you are saying is, accept what the insurance company wants to give you or you won't get anything?? Last time I checked this was the US, not Russia.
There is no way? My advice was to TRY.....you lose nothing by trying. And I know MANY people who were able to convince their (or the other parties') insurance companies to total their car. Why, you ask? Because while they may pay out more in the short run, they get to keep the cars, which they then sell off to recoup some of their payouts. Then they can raise insurance rates based on the higher claim amounts.
If you look at a claim of $30K in repairs with NO mechanical damage on a car worth around $55K, they would possibly pay out LESS money to total the car and sell it. Fixing the car would cost them a total of $35K to $45K, depending on the diminshed value. If you didn't accept their diminished value figure, they risk being sued, and possibly subjected to a bad faith claim. If they paid the $55K, they could EASILY sell the car for $15K to $20K, given that there was no mechanical damage. If you do the math, it makes no difference to them money-wise.
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From: Austin TX
Mark,
Very same thing happened to my uncle in his late 90's 7 Series. He rear ended someone, damage was significant but not what you would think of as a total. Insurance company totalled the car because the salvage value + the repair damage was more than what the car's market value was. I don't know what the exact figure was but the salvage value was over half of what the car's market value was.
Very same thing happened to my uncle in his late 90's 7 Series. He rear ended someone, damage was significant but not what you would think of as a total. Insurance company totalled the car because the salvage value + the repair damage was more than what the car's market value was. I don't know what the exact figure was but the salvage value was over half of what the car's market value was.
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From: Manhattan
Well, totalling is not an option for me.
A) Insurance never brought it up and B) just got it back yesterday!! Woo hoo. Put the Euro Turbo bumper on it...looks great, btw.
I haven't started the diminished value process yet, but have opened a dialog (dialogue to translate to our UK friends
)
In any case, for my insurance, if I claim on the other guy's policy, diminished value is open for discussion. If I claim on mine, it is not (fine print = actual repair value). However, the other guy did an illegal u turn, so hopefully the Force is with me. Of course, in screwy America legal wrangling, he sees the Porsche and of course assumes I am rich and must have been doing SOMETHING wrong, so better get a lawyer...net net is had to claim on my ins. for now to get car back. Plan to work with adjuster to get DV figured out now, then when dust settles, have it all laid out...I figure this will take awhile anyway, and I expect him to lowball me. I do plan, however, to push hard for at least 20%.
If anyone has any tricks/strategies that have worked, I'm certainly open...either on the board or via private message.
A) Insurance never brought it up and B) just got it back yesterday!! Woo hoo. Put the Euro Turbo bumper on it...looks great, btw.
I haven't started the diminished value process yet, but have opened a dialog (dialogue to translate to our UK friends
)In any case, for my insurance, if I claim on the other guy's policy, diminished value is open for discussion. If I claim on mine, it is not (fine print = actual repair value). However, the other guy did an illegal u turn, so hopefully the Force is with me. Of course, in screwy America legal wrangling, he sees the Porsche and of course assumes I am rich and must have been doing SOMETHING wrong, so better get a lawyer...net net is had to claim on my ins. for now to get car back. Plan to work with adjuster to get DV figured out now, then when dust settles, have it all laid out...I figure this will take awhile anyway, and I expect him to lowball me. I do plan, however, to push hard for at least 20%.
If anyone has any tricks/strategies that have worked, I'm certainly open...either on the board or via private message.
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From: Manhattan
Well, totalling is not an option for me.
A) Insurance never brought it up and B) just got it back yesterday!! Woo hoo. Put the Euro Turbo bumper on it...looks great, btw.
I haven't started the diminished value process yet, but have opened a dialog (dialogue to translate to our UK friends )
In any case, for my insurance, if I claim on the other guy's policy, diminished value is open for discussion. If I claim on mine, it is not (fine print = actual repair value). However, the other guy did an illegal u turn, so hopefully the Force is with me. Of course, in screwy America legal wrangling, he sees the Porsche and of course assumes I am rich and must have been doing SOMETHING wrong, so better get a lawyer...net net is had to claim on my ins. for now to get car back. Plan to work with adjuster to get DV figured out now, then when dust settles, have it all laid out...I figure this will take awhile anyway, and I expect him to lowball me. I do plan, however, to push hard for at least 20%.
If anyone has any tricks/strategies that have worked, I'm certainly open...either on the board or via private message.
A) Insurance never brought it up and B) just got it back yesterday!! Woo hoo. Put the Euro Turbo bumper on it...looks great, btw.
I haven't started the diminished value process yet, but have opened a dialog (dialogue to translate to our UK friends
)In any case, for my insurance, if I claim on the other guy's policy, diminished value is open for discussion. If I claim on mine, it is not (fine print = actual repair value). However, the other guy did an illegal u turn, so hopefully the Force is with me. Of course, in screwy America legal wrangling, he sees the Porsche and of course assumes I am rich and must have been doing SOMETHING wrong, so better get a lawyer...net net is had to claim on my ins. for now to get car back. Plan to work with adjuster to get DV figured out now, then when dust settles, have it all laid out...I figure this will take awhile anyway, and I expect him to lowball me. I do plan, however, to push hard for at least 20%.
If anyone has any tricks/strategies that have worked, I'm certainly open...either on the board or via private message.
