How to file a car accident diminished value claim?

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PostPosted: Mon Jun 02, 2008 3:18 pm   Post subject: How to file a car accident diminished value claim?  

I was in an accident 2 months ago. A guy ran a red light in Downtown Houston doing 40 and hit my truck in the side (front end). I was in my 2006 GMC 2500HD. It is a loaded out CC with the duramax diesel and allison transmission. The sticker was $45k when I bought it. It is not my DD and that is why it only has 15k miles and is over 2 yrs old. I am anal and maintain my vehicles very carefully. The repair bill is about $12k so far and is not done. There was minor frame damage according to the body shop. I am going to pursue a car accident diminished value claim. I was not looking to involve attorneys and make a big mess of it. From doing internet research it appears that the true "car diminished value" is more of a ghost figure and I need to employ a firm to assist in this. Is that the case? I am not trying to be difficult to the insurance company and would just assume have a reasonable conversation with some good information and be fair. I just can't find anything regarding how this value is determined.



What is the best way to handle this? TIA


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#Leadfoot
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PostPosted: Tue Jun 03, 2008 10:45 am   Post subject:   

Wait a minute...

Quote:
I was in an accident 2 months ago
Quote:
The repair bill is about $12k so far and is not done
Why isn't it done yet?
Quote:
the true "Diminished Value" is more of a ghost figure and I need to employ a firm to assist in this.
You are correct, it is a 'perception' of diminished value of car, unless and until the car is sold, so it is kind of a ghost figure....There's plenty of ''firms'' that will take your money and type up a report for you....First I'd advise researching to make sure that your state even allows 3rd party dv claims, most states do but I think there are a couple that do not...so check that out first..(look at your states Dept of Ins site)...
Quote:
I just can't find anything regarding how this value is determined.
A dv is the difference in what you would have got to sell your vehicle prior to this accident and what you will get now that it has been repaired...Personally I think you can call about four reputable dealers talk with their used car managers and ask them...'hey how much before and how much after the repair'' simple as that...or you can hire someone and pay them anywhere from 500-2000.00 for pretty much the same thing only a bunch of pages...Talk to the adjuster see what their companies position is on it...YOU do have to PROVE your loss...Personally I'd give it a try myself first.


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PostPosted: Tue Jun 03, 2008 12:31 pm   Post subject:   

Yes, its true that even if the bodyshop may perform an excellent job for this 12k. But lemme tell you that I'd gone thru a survey once, which clearly stated that all vehicles would suffer an inherent diminished value. It also showed how a 55% of the users would not choose a car that has suffered an accident. Again, 81% would only choose such a car upon a big discount offer. So, there lies a piece of the cake in case you gotta argue upon it with the adjuster. Dorrisday


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PostPosted: Tue Jun 03, 2008 12:39 pm   Post subject:   

Hi..

I believe that even for a vehicle which has undergone a damage over the frame or for that matter any structural damage it would be difficult to obtain the worth of a 'certified used vehicle'. It could even put up a blow till about 40% of its worth. Anyone to disagree!

Pearlharborautopsy


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PostPosted: Tue Jun 03, 2008 12:47 pm   Post subject:   

Quote:
Anyone to disagree!
yeah, I do!
Quote:
put up a blow till about 40% of its worth.
Following this logic, nearly all front end impacts are going to total out! If after adding repair cost then 40% of the value for dv then you are going to have a lot of total losses out there....and guess what's going to happen to your rates? Also when you go to buy a used car at a lot...are you honestly telling me that they are going to have on the window sticker...'this vehicle's price has been reduced by 40% because they had an accident that caused the core support to be replaced? NOT!
Quote:
damage over the frame or for that matter any structural damage
I don't know what damage ''over the frame'' means, but I certainly know what ANY structural damage is...for that matter on an unibody car the windshield is even part of the structural integriety of the vehicle...I'll go along with this dv stuff, when I start seeing it on a used car lot...and as yet I sure haven't....


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PostPosted: Wed Jun 04, 2008 2:04 am   Post subject: state farm claim car repairs  

Well, let me see if I can answer everything. For starters the truck is not done yet for several reasons. 1 - State Farm forgot to send an adjust for 2 weeks to look at it. I considered waiting and to see how long State Farm would pay for a rent car before someone noticed there was no work being done to the truck. Luckily I am anal about my vehicles and had kept in close contact with the bodyshop so I knew they had not even returned the bodyshops calls. I decided to be helpful and let them know.

2nd - the adjuster has done a poor job. Everyone that saw my truck knew it neded the entire front end and could clearly see mechanical damage under the hood. The adjuster wanted to wait on the hood even though the bodyshop and I clearly showed him the hood was creased across the entire panel. Each time the bodyshop has had to wait for him to come back out, re-inspect and give approval. Then they have to locate the parts, etc etc. I am not shocked. Esp considering the tried to force used parts and I had to have my local dealer explain that my 100k warranty would no longer be valid and that was unnacceptable.



I can personally understand the loss of value. I am picky about my cars. Myself and most of my friends won't by a car that has had ANY bodywork done. My DD is a car I bought back in 1997. I looked for 10 months to find one that had not had bodywork and was priced appropriately. I used to work at a local GM dealership in service. They might certify a wrecked vehicle, but it is not as likely. The manager doesn't want a bad deal coming back on them. I had to work on a Camaro that was sold vertified by another dealer in my time there. Needless to say the other dealer was sued, refused to settle, and lost. It created much bad press for them. I can def understand why a dealer might try to auction a vehicle and offer less because it has been damaged. Given high fuel prices currently, dealers are already refusing some larger vehicles in trade. This would be the perfect excuse to use for refusing it or giving me much less.



Like I said, I am not looking to be a pain, but I was not at fault and am simply trying to make sure I take care of myself.



I had not thought of your suggestion. Having worked in the dealership world, I still know some people there. I can try to see if I can at least fine a few that will spend a few minutes explaining there position on a wrecked vehicle and how much value they consider lost from it being wrecked.


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PostPosted: Wed Jun 04, 2008 10:14 am   Post subject: state farm claim car repairs  

Quote:
State Farm forgot to send an adjust for 2 weeks to look at it.
WHOOPS! Rolling Eyes
Quote:
I considered waiting and to see how long State Farm would pay for a rent car before someone noticed there was no work being done to the truck
WinkLaughing That's funny....and tempting! LaughingLaughing I'd bet there was a collective, '''OH CRAP!"" throughout that office once this was discovered!
Quote:
the adjuster has done a poor job
That's obvious, and a shame, and not doing his job, and costing his company a lot of extra money!
Quote:
Given high fuel prices currently, dealers are already refusing some larger vehicles in trade. This would be the perfect excuse to use for refusing it or giving me much less.
You're right, I hadn't thought of that aspect...
Quote:
Like I said, I am not looking to be a pain, but I was not at fault and am simply trying to make sure I take care of myself.
I totally get/understand that...and don't blame you at all..
Quote:
I had not thought of your suggestion. Having worked in the dealership world, I still know some people there. I can try to see if I can at least fine a few that will spend a few minutes explaining there position on a wrecked vehicle and how much value they consider lost from it being wrecked._______
See if they won't type or write you up something on their letter head...you more than likely will need this in writing, also don't forget to check your states DOI site, to make sure third party diminished value is allowed...



Please let us know if we can be of further assistance, and how your claim is progressing.


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PostPosted: Thu Jun 05, 2008 2:16 pm   Post subject: DV is real not percieved.  

Poster, the courts in all states recognize third party car insurance diminished value. It is not a perceived loss as the insurance company adjusters that post here will tell you. You do not have to sell the vehicle to realize the loss. The courts have determined that the loss occurs at the moment of impact. You most likely have minimum three years to file this claim against the negligent party. Because the insurer will refuse to even admit that DV exists, you will have to speak to someone who understands your loss and is willing to help you in Texas.



You will wind up in a circular argument that you can not win if you try to handle this with your assigned appraiser or insurance posters here. Because people perceive and others who have suffered losses realize after they take it in the shorts as much as 40 to 50 percent at trade in time, diminishment of value becomes relevant and not perceived.



Poster, please ignore the personal attacks and namecalling that will begin on me because they believe I come here only to hawk my DV consulting business. I feel strongly as you, that this is not perceived but a real loss. I hope you find good counsel in Texas to assist you. Reseach DV online but be careful to hire an inspection or assessment from someone who does not reside in your state.



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PostPosted: Thu Jun 05, 2008 8:46 pm   Post subject: state farm claim car repairs  

Why would it matter if the DV inspection come from someone outside of the state?



And actually State Farm has recognized that diminished value exists. They said we should continue the discussion once the truck repair is complete.


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PostPosted: Thu Jun 05, 2008 11:04 pm   Post subject:   

Quote:
And actually State Farm has recognized that diminished value exists. They said we should continue the discussion once the truck repair is complete.


See there we're not all jerks are we Mike?



Let us know if we can help you in any other way leadfoot...also keep us updated on your progress...


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PostPosted: Thu Jun 05, 2008 11:59 pm   Post subject: state farm claim car repairs  

Poster, pay no attention to that woman behind the curtain!



They are just stalling.



Quote:
Quote:

And actually State Farm has recognized that diminished value exists. They said we should continue the discussion once the truck repair is complete.




When the work is complete, they will say any problem you now have is with the repair shop since they paid to restore to preloss condition.



You can get DV assessments from all over the country from 49.95 to 299.95. Many use a formula that is modeled after a Georgia formula known as the 17c rule. This formula was to be used only in absence of any other method availabe to assess your loss and is the ones insurers like to use if they agree to pay your loss. It is easily refuted and has flaws and pays peanuts compared to the value of your loss.



The reason you should use someone in your own state and preferably close to you is that if you wish to pursue an amount you feel is owed and the insurer does not agree they owe the amount on behalf of their negligent insured, you may have to litigate. They make you work for it, because their pockets are deeper when it comes to litigation and the only way to prove your loss is through litigation and a jury would be easy to convince that this is an owed loss.



To get any reasonable settlement besides the token settlement they feel they owe you, You will have to work with an attorney that will take your case on contingency and their expert will need to be available for deposition or trial as your expert witness. Most of the time a negotiated settlement can be reached.



There is one nationally advertised legal firm that will take your case on contingency and I know of at least one inspector in Texas that works with that firm. Insurers do not take seriously your DV claims unless they feel there is a chance that you will litigate. They will stall on this issue unless they fear you have representation.



Sixty six percent of what an attorney will help you get is substantially more than you will get on your own.



Let the slings and arrows of condemnation from the opposing point of view begin! If you want more information from me on this, register and pm me as I will not have enough hours in the day to justify my argument to those that feel differently. You can find those debates on other posts and I do not care to address their remarks and have no desire to rehash old posts.


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PostPosted: Fri Jun 06, 2008 9:38 am   Post subject: state farm claim car repairs  

Quote:
They will stall on this issue unless they fear you have representation.


No ins company nor adjuster ever 'fears' representaion I assure you...If you think for one second that the largest insurer in the US (state farm) is going to cringe even a tiny bit over someone getting rep'd Mike you are more dilusional than I thought! Rolling Eyes More times than not it is the injured party that ends up on the losing end, after the fees are paid they generally get what they would've got on their own or less...(after the fees )



Leadfoot will need to make his/her own decisions regarding motivation for posting on this site...(just review some threads). Personally I think this OP is more than intelligent enough to make a few calls and prove his diminished value without having to pay someone to type up a report...Or fill in a few blanks on one...for a fee....but it's his money....



Again leadfoot if we can be of any further assistance please don't hesitate to ask...


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PostPosted: Fri Jun 06, 2008 2:28 pm   Post subject:   

Quote:
No ins company nor adjuster ever 'fears' representaion I assure you...If you think for one second that the largest insurer in the US (state farm) is going to cringe even a tiny bit over someone getting rep'd Mike you are more dilusional than I thought! More times than not it is the injured party that ends up on the losing end, after the fees are paid they generally get what they would've got on their own or less...(after the fees )




Fear was probably not a good analogy, I think the reality is that the insurer will not respect your claim without representation, for then they will be requred to respond in good faith at that point. Until then they will do what they do best; Deny and delay owing you for this loss. What they want is to clear their files and desk of your claim, what annoys them, is your claim dragging on.



If you feel that about ten percent of your repair cost is a fair settlement (which is what they most likely will offer you) for the loss of value, then by all means negotiate on your own behalf, but if you feel that 12,000 dollars in damage on an 06 duramax will reduce the value by 25 percent or more, you'd better be prepared to have good documentation and an attorney that understands the value of property and how accident damage affects value. Your loss of value is the difference of the fair market value just prior to the loss or impact and the post repaired fair market value that your vehicle would sale for today disclosing all the damage and whether it was restored with oem parts or imitation parts.


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PostPosted: Fri Jun 06, 2008 8:14 pm   Post subject:   

Quote:
will reduce the value by 25 percent or more, you'd better be prepared to have good documentation and an attorney
You'd also better be prepared for that puppy to total! Or come darn close...Salvage bid (round these parts) is gonna be 15-18k...you do the math Mike...subtract the salvage from the ACV (and I'm probably valueing it too low without know all his options)..that's how much you got to spend...add your 25% plus the 12k repair, then throw in the rental...bingo bango, that dog ain't huntin' no more! Course Leadfoot is gonna want to retain the salvage, he loves his truck (don't blame you by the way)...Now you want to talk about diminished value! Try selling that truck with a former salvage title and see what you get.. Rolling Eyes


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PostPosted: Fri Jun 06, 2008 9:31 pm   Post subject:   

Quote:
Course Leadfoot is gonna want to retain the salvage, he loves his truck (don't blame you by the way)...Now you want to talk about diminished value! Try selling that truck with a former salvage title and see what you get..




If he retains it and it does not total, (most likely won't) he will have some comfort in dollars to ease the pain of the loss of value. The poster most likey was going to take it in the shorts come trade in time with that much damage on car fax anyway. Those heavily damaged and repaired vehicles usually wind up at the auction with disclosure or on pay by the week lots if used as a trade.



Not sure what the laws are in Texas with regard to salvage and total losses, but my understanding is that sales tax, tires, batteries, air bags, seatbelts, radios, loss of use, do not figure towards the threshold of a property total loss in Missouri, could be the same there.


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