had an accident which was not my fault. One of friend told m

by ayya1316 » Tue Dec 07, 2010 08:56 am

had an accident which was not my fault. One of friend told me that I can get teh depreciation money from the other insurance. do you tell me where I need to ask for this. My car is 2004 pointiac vibe. Do you know how much money I may be getting as depreciation money for this accident. I am in South Carolina Thanks,

Total Comments: 5

Posted: Tue Dec 07, 2010 05:35 pm Post Subject:

You file a claim with the at fault party's insurance company and wait for their offer. The damage to your vehicle is insured for "Actual Cash Value" -- the market value LESS the depreciation. You don't get "the depreciation" from the insurance company.

You'll have to research the value of your vehicle based on its mileage and other factors, such as modifications, enhancements, factory-installed equipment. We can't do that for you.

Posted: Sat Dec 11, 2010 08:00 pm Post Subject:

ayya1316, First let the insurance company repair the vehicle and make sure there are no issues with the repair. Just search around for "Diminished Value Claim" and you should find more information. If the damage was minimal (say a fender & bumper) the claim will be minimal as well but if there was extensive unibody damage you should be entitled to a reasonable amount. More than likely you will need to pay for an appraisal on your vehicle to substantiate the diminished value.

Max, yes of course the other party, and thus their insurance carrier, would be responsible for paying the diminished value of the vehicle which is infact the "depreciation" which would be the difference between the value of the car with repaired collision damage vs the value of the same car in the same condition without any repaired collision damage. Vehicles with collision damage, no matter how well repaired will never have the same value as they did before the damage. For example it is impossible to replicate the factory paint process, well it is but it wouldn't be practical as it would cost way more than the potential value of the diminished value claim, and thus even if the exact OEM repair processes are followed including the recommended paint products that aftermarket paint will never hold up the same as the original paint would.

Posted: Sat Dec 11, 2010 09:48 pm Post Subject:

no matter how well repaired will never have the same value as they did before the damage.

I have to laugh a little when I hear this. A 7 year old vehicle with a 7 year old fender and a brand new one is put on with new paint and for some reason it's worth less now. Yet when people sell a car or anything else they are quick to point out what is new on it as a way to get a higher price. Odd. Just odd.

Posted: Mon Dec 13, 2010 07:28 am Post Subject:

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tcope wrote:

no matter how well repaired will never have the same value as they did before the damage.



That's do to the _real_ perception that Damaged Goods are not as valuable as identical [ never-damaged ] goods. Over the years I've ask many consumers if they would prefer to pay the same amount for a damaged / repaired item as an undamaged item. They always say NO. Yet many will add "they would buy the damaged / repaired item if the price was lowered enough.


I have to laugh a little when I hear this. A 7 year old vehicle with a 7 year old fender and a brand new one is put on with new paint and for some reason it's worth less now. Yet when people sell a car or anything else they are quick to point out what is new on it as a way to get a higher price. Odd. Just odd.



Well, I do agree that the New OEM fender is worth more that the 7 year old used one that it replaced, that is if we are comparing the value of fenders, but like you stated the higher valued fender does not add much (if any) value to the automobile itself.

Soooo I have to ask... why do insurer's claim that a new part adds value and gives insurers the right to _Deduct_ an abartray amount from a claimants settlement that is called "Betterment"

Also since in the insurer's view "betterment" applies when OE parts a used shouldn't "worsement" also apply when they are not used ?

Posted: Mon Dec 13, 2010 03:57 pm Post Subject:

"Betterment" only applies when the final result puts the claimant in a situation where, following the repair, the object of the repair is now worth more after the repair than it was worth prior to the loss. Insurance is not intended to provide a profit, only to restore to whole.

Aside from the fact that there is no such thing as "worsenment", using parts other than factory originals, merely complies with the purpose of indemnity -- to restore the claimant to whole. Prior to the loss he has an undamaged fender. After the repairs, he had an undamaged fender. Replacing a fender following a collision (whether with a OEM part or a lookalike) should not result in betterment in most auto collision circumstances.

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