Diminished value - claimable on insurance?
#1
Three Wheelin'
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Those who read way down the page will see my car suffered a little damage last week.
My attorney friend does not believe you can claim for diminished value. If he's wrong how do you go about this process? I want to make sure I don't suffer financial loss should I choose to trade it in for a new car.
Anyone tell me how?
MTIA
My attorney friend does not believe you can claim for diminished value. If he's wrong how do you go about this process? I want to make sure I don't suffer financial loss should I choose to trade it in for a new car.
Anyone tell me how?
MTIA
#2
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You can claim whatever you want.
Now if your insurance is covering your loss there's usually a disclaimer that diminshed value wil not be covered only repairs. This is a clause you likely agreed to (knowingly or not) when you took out your policy.
If someone else is at fault and their insurance is covering the loss then just tell them you want compensation for diminished value. They'll probably fight you on this. If so then find a lawyer and turn around and sue the guilty party and let their insurance company deal with the fallout. You have no contract with their insurance company. They are simply indeminifying their customer. If the other party has inadaquate insurance it will come out of his hide.
I'm not a lawyer but that's how I understand it.
Now if your insurance is covering your loss there's usually a disclaimer that diminshed value wil not be covered only repairs. This is a clause you likely agreed to (knowingly or not) when you took out your policy.
If someone else is at fault and their insurance is covering the loss then just tell them you want compensation for diminished value. They'll probably fight you on this. If so then find a lawyer and turn around and sue the guilty party and let their insurance company deal with the fallout. You have no contract with their insurance company. They are simply indeminifying their customer. If the other party has inadaquate insurance it will come out of his hide.
I'm not a lawyer but that's how I understand it.
#3
Drifting
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against your policy, highly unlikely.
against the guy who hit you, assuming the accident was his fault - anything is possible. its whatever you can negotiate and they will agree to.
against the guy who hit you, assuming the accident was his fault - anything is possible. its whatever you can negotiate and they will agree to.
#5
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As boolala said, you can claim whatever you want...but in theory, by properly repairing the vehicle you will be 'made whole', and you aren't entitled to anything more.
It will be hard to prove that you are entitled to additional compensation once your vehicle is properly repaired. Even though enthusiasts will shy away from a previously damaged vehicle, the general public does not consider them to be worth less.
It will be hard to prove that you are entitled to additional compensation once your vehicle is properly repaired. Even though enthusiasts will shy away from a previously damaged vehicle, the general public does not consider them to be worth less.
#6
Three Wheelin'
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The claim will be against my building management. They have already told me that they may pay the repair bill out of cash, but I don't want to lose value on a car that I didn't damage, and when it only has 1870 miles on it.
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#8
Three Wheelin'
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Originally Posted by Le Chef
The claim will be against my building management. They have already told me that they may pay the repair bill out of cash, but I don't want to lose value on a car that I didn't damage, and when it only has 1870 miles on it.
As long as you don't sign anything or cash any checks, you can always visit a lawyer. However, they really don't want that so I suggest you just be civil but firm and explain that this was a new car and you want it replaced with a new car. You can give them the option of finding the same exact car with the same exact options and mileage and explain you'd be happy with that (which I know you won't, but they won't find it either), otherwise you'd like the cash so you can purchase another one yourself.
If they play hard ball, then get a lawyer. Explain how you haven't been able to get any sleep and you are a mental case since this tramatic event has happened to you.
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#9
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Meredith on PPBB (Boxster board) recently claimed diminished value with her insurance company - USAA as I recall. She received a check from USAA that was, in most everyone's opinion, below what it should have been. I'm not sure if she finally accepted the DV settlement or was going to appeal it with data from P-car experts.
You might want to search the Boxster board for that particular thread. There was some really good info on it.
You might want to search the Boxster board for that particular thread. There was some really good info on it.
#10
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In general, the law (depends on state statutes or case law) states that the property will be returned to the pre-accident condition and value. Some insurance policies have a disclaimer for "diminution of value" claims while some states specifically regulate and do not allow such exclusion. A local attorney should advise you as to your state law.
Diminution of value claims are valid claims. In fact, as we speak we are in litigation on three diminution of value cases. You need to get an opinion from a car appraiser to see if the car, after the repairs, has diminished in value due to the fact that at the time of sale you are required to disclose that the car was in an accident. You may also want to check with your dealer to see if they would have any problem taking in trade a car that has been involved in an accident. Some dealers, such as many MB dealers will not take the car because they don't want to deal with the buyer's disclosure.
By the way my standard disclosure: This is not meant to be legal advise. Just some thoughts.
Diminution of value claims are valid claims. In fact, as we speak we are in litigation on three diminution of value cases. You need to get an opinion from a car appraiser to see if the car, after the repairs, has diminished in value due to the fact that at the time of sale you are required to disclose that the car was in an accident. You may also want to check with your dealer to see if they would have any problem taking in trade a car that has been involved in an accident. Some dealers, such as many MB dealers will not take the car because they don't want to deal with the buyer's disclosure.
By the way my standard disclosure: This is not meant to be legal advise. Just some thoughts.
#12
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A very good friend, Chicago PCAer with an '03 Turbo coupe suffered about $35K in repairs (substantial front). Both insured State Farm. Other driver at fault. I got him $15k in "diminished value" after very much effort. Yes, in Illinois, its doable but not easy. Need good evidence, appraisal (before and after), etc.
#13
Drifting
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Let me add another catch 22 to this arguement:
-- If you lease a car and it is banged up, as long as the car is repaired, I believe, the lease company must take it back (they suffer the diminished value), (one of the nice things about leasing actually..)
So, I agree there is a clear loss in value when a car is in an accident (especially if it's two or more panels) but my understanding is also, that value can only be realized when the car is sold.. So maybe if you sell the car right away and get three quotes from dealers when you do it, you might have the evidence you need.
Just a thought !
B
-- If you lease a car and it is banged up, as long as the car is repaired, I believe, the lease company must take it back (they suffer the diminished value), (one of the nice things about leasing actually..)
So, I agree there is a clear loss in value when a car is in an accident (especially if it's two or more panels) but my understanding is also, that value can only be realized when the car is sold.. So maybe if you sell the car right away and get three quotes from dealers when you do it, you might have the evidence you need.
Just a thought !
B
#14
Three Wheelin'
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Quote for repairs "as seen" are $12,000. Spoke to the dealer who told me they will help establish diminished value. Apparently in IL the other party's insurance company has to compensate for dv by law. Case when through State court last year that established this.
There is some structural damage (though not much) to the driver's door pillar area below the waist line. Depending on how bad it really is when they have the car stripped down will determine whether I keep it or sell it.
There is some structural damage (though not much) to the driver's door pillar area below the waist line. Depending on how bad it really is when they have the car stripped down will determine whether I keep it or sell it.
#15
Three Wheelin'
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Originally Posted by Le Chef
Quote for repairs "as seen" are $12,000. Spoke to the dealer who told me they will help establish diminished value. Apparently in IL the other party's insurance company has to compensate for dv by law. Case when through State court last year that established this.
There is some structural damage (though not much) to the driver's door pillar area below the waist line. Depending on how bad it really is when they have the car stripped down will determine whether I keep it or sell it.
There is some structural damage (though not much) to the driver's door pillar area below the waist line. Depending on how bad it really is when they have the car stripped down will determine whether I keep it or sell it.
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If the car is deemed to be totalled, then they owe you sales tax and fees as well. Try to get that shop to determine the extent of the body damage to try to get it declared total. Even if you have to pay a little for the estimate for them to tear it down, you don't have to pay to have them put it back together if you are successful in having it declared totalled (due to structural damage).