Diminished value

Hello all. As I mentioned in this thread, my 2011 DBL cab 4x4 was rear ended on Monday. I live in Georgia, which is one of the few states that requires insurance companies pay diminished value. For those that don't know, the diminished value is the amount the value of your vehicle decreased by simply being involved in an accident. This amount can vary greatly depending on the amount of damage involved, especially if frame damage is involved, which in my case it was. From the research I have done, it seems a very large percentage of people don't know they are entitled to diminished value compensation, so they don't ask about it. If you don't ask, most of the time the insurance company isn't going to mention it.

Yesterday I met with the other driver's insurance co adjuster to get a preliminary estimate on the damage. Before meeting with the adjuster, I did a little research on diminished value. I asked my dealer how much less he would give me for my truck knowing it had been in an accident, and his response was that it would lose between 20-30% of its value. He can't resell my truck to an individual because of liability issues due to the frame damage. If he bought my truck, he would have to send it to auction. Blue book on my truck is around 26,500 so that works out to be between 5300 and 7950. I mentioned this amount to the adjuster, and his response was an immediate BULLSHIT. He stated that the diminished value claim will be handled after the repairs are made, but it doesn't sound like he plans on giving me anywhere near the amount my dealer said.

My dealer has offered to put the diminished value in writing. I plan on trying to get this amount in writing from at least one more dealer. Has anyone else ever received a diminished value check from an insurance company? Do you feel it was a fair amount? Anyone ever argued the amount and gotten more? Ever went to court about it?

I am worried that I am going to have a fight on my hands. I shouldn't be upside-down $5-8k on my loan because SOMEONE ELSE rear ended me.

Right now, my truck is at the body shop being torn down and looked over. The service writer at the shop immediately saw damage that neither I nor the adjuster saw before even tearing the truck down. The bed is no longer in perfect line with the cab. Expecting a call from him within the next few hours to tell me the full extent of the damage. Hope to have the truck back in a week and then the fight with the insurance company begins.

 

I have heard of diminished value being paid, but have no idea about negotiating it. Sorry no help there.

I would call my insurance agent and ask them to intervene or at least discuss it with you. They can put a lot more pressure on another insurance company than you can and it won't cost you a thing.

 

Sadly, when I called my insurance company (State Farm), the said I would be lucky to get a few hundred bucks. I have read in my research that State Farm was one of the worst insurance agencies about paying diminished value claims.

 

it appears that a new frame is cheaper than a diminished value payment...and dealers sell cars with bent frames every day. What your dealer is saying that he would "wash" the salvage/repair title with an out of state sale.

There has been awful abuses by rebuilders on vehicles that should have never been rebuilt. Usually the rebuilders specialize is specific models/years and buy every wreck at auction they can, sometimes just to have enough, cheap parts around.

A properly repaired vehicle should be a good as new. The key is properly repaired.

Howard

 

This is correct, but when it is trade in time all the dealer sees is a ding on the Carfax report.

My 2010 was hit in the back corner and had minimal damage (around $2400). Basically the bumper was replaced and the bed right behind the mud flap was repainted due to a scratch. After getting offers from a couple of dealers, I finally traded it in for just over $3K less than the KBB/Black Book/NADA trade in value because that was the best anyone would give me for it. The dealer I traded it in at was the dealer whose in-house body shop did the repairs. They told me they would not put any truck with Carfax reported repairs on their used lot because they don't sell.

If my truck is ever hit by anyone again my neck WILL hurt, and I will use that to get as big of a 'now you can't sue us' check from the other person's insurance company. Unfortunately, I don't think you are going to get a $5-8K check for diminished value without a lawyer being involved.

Absolutely sucks for those of us on the receiving end, but what can you do? Good luck.

 

I would stay with the figure the dealer quoted you regarding the diminished value. Ky is a state which allows for diminished value claims. A friend of mine who got rear ended in an Infiniti with 235 miles on it collected 5K for diminished value once the car was repaired by Infiniti. Unfortunately good luck with collecting it and State Farm has to be the worst insurance regardless if you are the insured or the other unit. Keep us posted as to how this turns out, I find it interesting how insurance companies want big premiums but want to provide little service.
Bill

 

This ever happen to anyone in Canada? I was involved in a accident a few weeks back, $5500 in damages on the front end of my 09 Taco (car pulled out directly in front of me, says he didn't see me, wrote off the '12 Corolla) Part of the reasoning behind my Taco purchase was the resell value, but now with a front end collision showing up on the car proof or car fax report, I feel that will be thrown out the window. I used to sell cars, and we used to do the exact same thing, any negative on the car proof report and the car is gone to auction, because it's an extremely hard sell when you know none of the actual history and it's just shows that the vehicle has been involved in a collision.

 

What about Texas? I was rear ended about a month ago. Got a payout for my rear bumper (about $800), but now there is damage to the bed as well. I am working with USAA to get this corrected as well. My truck is a 2014 TRD Sport.. Can I get paid for diminished value??

 

Ok so a little story about my rear-end accident. I got rear-ended back in may, The guy didn't have insurance so I had to turn it into my company. They valued my truck around $20k (2006 ACLB). My frame was bent badly to the point I could put a golf ball in the bed and it would very quickly roll out. My company paid for a new frame! $13k in damages. The reason for this was my company (Nationwide) doesn't total a vehicle unless there is 80% damage. I was right at the line, but they fixed it. I didn't get diminished value but if I had, and had I had rental car coverage, it most likely would of been totaled. I still need to go to the dealer to see how much I can expect to get on resale. Now for your situation, the other guys Company has to pay you diminished value, but they are not gonna give into your request easily. I work in the insurance industry and insurance companies hate to pay lol so my advice to you is to use everything you can to demand diminished value

 

Another reason not to live in GA

 

Got my wife a new Subaru Outback in 2011. That car was reared by a 3/4 ton Chevy at a stop light. About $8K in damage to my wife's three month old Subaru. Got it back from the shop (A reputable one at that) and the color didn't match as well as the rest of the paint on the car, there was a driveline clunk we, nor the Subaru dealer could never sort out.

Out of spite, we decided to "trade" the car in, as my wife was no longer confident driving it any longer. Dealer gave us $4K less than book value in lieu of the CarFax accident history. Car was less than about two years old when we traded it, and at about 22K miles.

While they could not give us a penny more for the car in the accident, they gave us a steep discount on the new 2013 Outback (That was fully loaded unlike her first) MSRP was like $34K and we left the Subaru dealer for $28,500.

Ultimately we took a bath on the old car, but our state doesn't peruse, nor stand on the claimants side for DV. I did nt want to own that 2011 Subaru after the warranty period, given the issues we started having with it preceding the accident and repairs.

 

Similar situation, in GA rearended with only about $1200 damage. Two people with state farm hit me. One was first then another SF idiot hit them and they hit me again. Truck held up awesome and the other vehicles were towed off.

Anyways, state farm offered me $87 yes $87... I went to an appraiser and he said my DV should be between 1k and 1500. Himmed and hawed with state farm for about a month. Got em up to $250 if memory serves. It was all about principle now and I was pretty mad. Hired a lawyer, yea I know its nuts hiring a lawyer for 1k but SF wasn't going to get one over on this guy. We filed and was one week before court and they settled for $3k covered my lawyers fees, filing and all that. Lawyers take 40-50% when you go to court so I netted about $1500.

When I was handling SF myself I told them 1k and I would go away. All and all I felt good. It cost SF alot more than just 3k since they had to hire council and all on their side.

Short story is, don't give up. Get a formal DV estimate and present, you don't get good results lawyer up. Plenty of folks sign that first check, and if you read the fine print if you cash they are no longer liable for damages or DV.

It probably took 6mos to a year to go thru. But I was pretty upset and it was about principle at that point.

 

I agree you should not be taking a hit because somebody hit your car. But here is the problem: if it happens to a fairly new car the loss in value is high and you could easily come up with the amounts posted. If you drive your tacoma now for the next 10 years and then trade it in, it will not have such a big loss in value pre accident vs post accident.

If you drive it until the wheels fall off it will not have an impact at all...

 

I agree with you there. My plan when I bought the truck was keep it for 5 years, and trade it in. I'm thinking the diminished value would be somewhere around $2500. If I went to trade in now, I would definitely loose that just because it was in an accident.

 

So I just emailed my dealer for a trade in value on my truck, they said 14k. it's a 09 trd sport 4x4 with 150000kms on it. I then told them there was a $8000 in repairs recently from a accident, my value then went to $6000! Any tips on how to go after the insurance company to make up the difference. The accident was 100% the other persons fault. I'm now pissed! It's been over 3 months and it's still not repaired 100%, and now this...not a happy camper!

 

So the dealer was going to give you $14K and now they want to give you $6K!? That's insane. I've worked at many dealers and an $8K hit will never reduce what a vehicle's worth that much. The dealer is screwing you around.

Sell it privately. Check Trader to see what they are going for retail and then reduce it by $2-3K because of the hit. You'll find a buyer.

Of course the wild card in all of this is, what do you mean by not repaired 100%?

 

Not fixed 100%$ means my air conditioner still doesn't work, the compressor has a hole in it, they say it's a coincidence with the accident, and not caused from it. The headlights don't match, the 2009 trd headlights have been changed from the original part number to a new one. There is a extended warranty for bubbling in the US, but because I live in Canada and the warranty campaign isn't in Canada, even though my VIN is in the extended warranty in the US. Doesn't make much sense to me. Everyday I look at the truck and it pisses me off. The car I hit was wrote off, 2 days later he was driving a new corolla, and here I am 4 months later still trying to get mine fixed, and will take a huge hit when I trade in the truck. it doesn't make much sense, and pisses me off. Think it's worth talking to a lawyer about?

 

Yeah that sounds terrible. Ultimately I'd be complaining to your insurance company. Especially if you went through a body shop that they recommended.

Why did they change the headlights to different ones? Do you have a clause in your insurance contract saying they can use used parts?

I found out the hard way I used to have a clause like that in my insurance. I changed companies and made sure only new and OEM parts where available are used.

 

You cant get them. The orginal part number which is what is on the passenger side was replaced by another updated part number which is what they ordered, and is on the drivers side. Now they won't change the passenger side because they say it wasn't broke, which technically it isn't, but it doesn't match the new one which pisses me off! It would piss anyone off. The air conditioner does not work now, the body shop said it's unrelated to the accident, yet the AC worked great when I was in the accident and now it does not, to me it looks accident related, and it should be fixed. I'm doing some research now on diminished value cases, and I'll be going to a couple dealers to get a trade in value, and tell them after I have that number that it was in a accident and see what they have to say then, and hopefully if I get 3 on paper, the insurance company will do something. I think my truck is worth more than 8k like the toyota dealer said. it's a 09 double cab 4x4 trd with 90k miles on it, in excellent shape aside from the accident.

 

So the lights look different? I didn't know there was a difference in headlights. If they do look different I'd be pissed too. Maybe try and buy the correct headlight and sell your current one. You would probably break even that way.

I'd be more worried about the A/C being repaired properly.

Good luck!