OT: Diminished Value Claim after accident?
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Burning Brakes
Joined: Jun 2001
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From: Incline Village, NV
OT: Diminished Value Claim after accident?
Do any of you have experience with filing a diminished value claim subsequent to a vehicle accident? My wife's nearly new car was rear ended. (Porsche related content: We used this car to tow my 993 back from the fabricator) While in the big picture all is good - no injuries and the car has been repaired - the car can never be resold as undamaged. It's certainly not a collectible car or anything, but one day I'll take a hit on resale.
Just wondering what the approximate percentage of value reduction might be?
TIA,
Don
Just wondering what the approximate percentage of value reduction might be?
TIA,
Don
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From: North Dakota
Don,
This is a very rough road to persue. I doubt that any insurance company will listen to your claim or offer to settle. You'll need to find experts and have them ready to testify in your claim against the other insurance company. By the time this comes to court or mediation, your experts may be gone or disinterested, and your car is a few years older and the major chunk of diminished value is gone. Its a nasty fight. Sorry and good luck.
This is a very rough road to persue. I doubt that any insurance company will listen to your claim or offer to settle. You'll need to find experts and have them ready to testify in your claim against the other insurance company. By the time this comes to court or mediation, your experts may be gone or disinterested, and your car is a few years older and the major chunk of diminished value is gone. Its a nasty fight. Sorry and good luck.
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From: Portsmouth, Ohio
In Ohio, you can either have the car fixed (cost of repair) or totalled (value of the car prior to accident). You can't have both. Problem is, you can't argue the loss of value because who knows what that would be when and if you decide to sell it. Too speculative. For example, if you assume a 10% reduction in value, that ten percent could mean alot (if you sold it tomorrow) or very little if you hold on to if for 5 years.
I am currently defending a case on this very issue.
I am currently defending a case on this very issue.
Racer
Joined: Jun 2002
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From: Manhattan, NY
When someone rear ended me in GA (very light damage . . . probably hit me at 5 mph in the rain), State Farm sent me a check for diminished value before I even asked about it . . . it just showed up in the mail. Not sure of the State Farm computation, however, I was satisfied with the amount so didn't want to waste any time on any questions.
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From: Ruckersville, VA
Don:
Since you state the car was nearly new, ask the other party's insurance company to buy your car for retail, and then go buy yourselves another one. That way, any dimished value is the problem of the insurance company. (Good luck getting an insurance company to take you seriously until you file suit)
The problem with peoples' argument about the dimished value becoming less over time is that it fails to take into account that damages (all that can be offered to settle a case in the USA) are supposed to make you whole at the time of the accident. That should mean that you get the car repaired and then get the difference in value between a repaired car and one that was never in an accident, as determined at the time of the accident. Unfortunately, insurance companies are among the largest contributors to state lagislators' campaignes, and therefore California passed a statute prohibiting collection of dimished value after a car has been repaired.
Are you sure your wife's neck doesn't hurt? Just a little? (all you lawyer haters-zip it. This is an attempt at humor)
Good luck.
Michael
Since you state the car was nearly new, ask the other party's insurance company to buy your car for retail, and then go buy yourselves another one. That way, any dimished value is the problem of the insurance company. (Good luck getting an insurance company to take you seriously until you file suit)
The problem with peoples' argument about the dimished value becoming less over time is that it fails to take into account that damages (all that can be offered to settle a case in the USA) are supposed to make you whole at the time of the accident. That should mean that you get the car repaired and then get the difference in value between a repaired car and one that was never in an accident, as determined at the time of the accident. Unfortunately, insurance companies are among the largest contributors to state lagislators' campaignes, and therefore California passed a statute prohibiting collection of dimished value after a car has been repaired.
Are you sure your wife's neck doesn't hurt? Just a little? (all you lawyer haters-zip it. This is an attempt at humor)
Good luck.
Michael
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From: Plymouth MN/Scottsdale AZ
Originally Posted by John H
In Ohio, you can either have the car fixed (cost of repair) or totalled (value of the car prior to accident). You can't have both. Problem is, you can't argue the loss of value because who knows what that would be when and if you decide to sell it. Too speculative. For example, if you assume a 10% reduction in value, that ten percent could mean alot (if you sold it tomorrow) or very little if you hold on to if for 5 years.
I am currently defending a case on this very issue.
I am currently defending a case on this very issue.
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From: Portsmouth, Ohio
Originally Posted by dfarrow
John - the car was hit today (figuratively) not 5 years from now so the dimished value today is the loss of the victim. This is a lot less speculative than trying to figure the future damage from an injury which is done all the time. Besides, he's not asking for both The presumption is that having the car fixed (cost of repair) PLUS the diminished value PLUS the value of the damaged car EQUALS totalled (value of the car prior to accident)
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From: North Dakota
John,
I am obviously not an attorney, but how is this any different then if your car sustains $500 in damage, and you choose not to fix it? You are still entitled to the $500. Its just that in the case of diminished value, the facts (amount of damage) are more difficult to determine.
I am obviously not an attorney, but how is this any different then if your car sustains $500 in damage, and you choose not to fix it? You are still entitled to the $500. Its just that in the case of diminished value, the facts (amount of damage) are more difficult to determine.
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If the market price for my 100 shares of PCAG declines by $1/share today, the value of my portfolio has dimished by $100 whether I choose to sell or not. His ability to get the value of the vehicle pre-accident has been damaged. Tell us what the court decides and how Ohio-precedent-specific the result is. 
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Burning Brakes
Joined: Jun 2001
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From: Incline Village, NV
Thanks for all the input so far.
The car has been repaired. What started off as a $4K repair was a $10K project to replace rear frame rails, etc. I'm the sort of guy that can spot body work/paint from across a parking lot - this car will always look damaged to me. So if it bothers me enough I can sell the car and buy another one.
So I ran simple KBB numbers changing only the no bodywork and frame damage sections which changed the valuation from high to low book - about 14%. But since I would have difficulty selling this in a private party setting as I've always done, now I'm at trade-in low book - a whopping 27% delta. Yes, over time this delta will decrease, but theoretically, that's the reduction in value I suffer today.
I'm not intending to hire an attorney or file a lawsuit - life is too short for that. My question ultimately is if I approach the responsible insurance company with a claim for the reduction in value, am I going to be laughed out of the office or do I have a shot? JustAnotherRed993, you have a PM.
The car has been repaired. What started off as a $4K repair was a $10K project to replace rear frame rails, etc. I'm the sort of guy that can spot body work/paint from across a parking lot - this car will always look damaged to me. So if it bothers me enough I can sell the car and buy another one.
So I ran simple KBB numbers changing only the no bodywork and frame damage sections which changed the valuation from high to low book - about 14%. But since I would have difficulty selling this in a private party setting as I've always done, now I'm at trade-in low book - a whopping 27% delta. Yes, over time this delta will decrease, but theoretically, that's the reduction in value I suffer today.
I'm not intending to hire an attorney or file a lawsuit - life is too short for that. My question ultimately is if I approach the responsible insurance company with a claim for the reduction in value, am I going to be laughed out of the office or do I have a shot? JustAnotherRed993, you have a PM.
Last edited by Don Plumley; Jun 22, 2006 at 06:40 PM.
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From: Sacramento, CA
Hi Don, Thanks for the shifter.
I would suggest small claims (up to $5000). File your suit, have the papers served by the deputy, and pay some appraiser 200 bucks to show up and testify for you in court. When you win, hand the bill over to the person who hit you and they can forward it to their insurance, pay you, or you can tag it onto their credit report (I wouldn't do that, but its legitimate if they don't pay).
Done. No lawyers needed. If you loose big deal. You basically pay for the filing fee.
I would suggest small claims (up to $5000). File your suit, have the papers served by the deputy, and pay some appraiser 200 bucks to show up and testify for you in court. When you win, hand the bill over to the person who hit you and they can forward it to their insurance, pay you, or you can tag it onto their credit report (I wouldn't do that, but its legitimate if they don't pay).
Done. No lawyers needed. If you loose big deal. You basically pay for the filing fee.