diminished value insurance claim

[boolonj]

My '24 Lariat was t-boned by a car failing to heed a stop sign. His insurance took responsibility and paid the 14k repair bill including my deductible. It's my understanding I can file a claim with the other parties insurance for diminished value as my vehicle now shows having been in an accident. I guess I would need to establish before and after accident values and present the difference as a claim. Anyone been down this road and how did it work out?

Gerry B, 24 Lariat FWD 15k miles

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[Ryom]

Tried against the other guys Progressive and with my State Farm, denied in Pennsylvania. I provided documents showing before and after valuation and prior adjudication and government docs citing average diminished value claims.

 

[notfast]

Good luck. You might be better off suing the guy in civil court. Diminished value claims are tricky because you're making a case for the present value of future unknowns, which insurance companies hate. Some of the unknowns are:

• When you're gonna sell the car, if ever. If you never sell the car, or sell it 30 years from now, you just got paid today for a loss you may either never realize or will have a disproportionate payout.
• What the future value of the vehicle will be if/when you decide to sell it, depending on mileage/condition/market, etc etc. If you sell it tomorrow, you should rightfully get a larger payout. If you sell it in 30 years, the present value of that future diminished value might be a hundred bucks.

You stand a better chance if you eliminate the main unknown of when you plan on selling the car. If you got, say, AutoNation and CarMax 7-day offers on deck and can reasonably prove that you plan on selling within the next month or two, you can make a stronger case that the vehicle would be worth more if it had a clean history.

Insurance exists to "make you whole" after a loss. In their eyes, you're made whole by having a repaired vehicle because those are actual realized losses with a known present value.

It's the same reason why rarity has little effect on payout. So if you had like, a '25 Eruption Green Maverick bought brand new in a configuration that isn't common (say, it was a fleet XL with a power seat) that was totaled, they can't rewind time and get you a new one exactly like it. They just punch in the options/condition/etc, get the value at the time of loss, and cut you a check so that you can buy a used one "of like kind and quality" to make you whole.

 

[MaverickDragon]

@notfast - Good points.
It can be an uphill battle that varies by the state.
This article may be worth the read for the OP.
Fortunately, in Indiana, diminished value is recognized.
Indiana allows third-party claims within a 2-year statute of limitations and recognizes inherent, repair-related, and immediate diminished value types.
Good luck!

 

[710-oil-614]

Why did you have a deductible if you weren’t at fault?

 

[notfast]

Why did you have a deductible if you weren’t at fault?

If I'm understanding correctly, his deductible got returned by the other person's insurance company.

When I got nerfed, I just paid my collision deductible and used my insurance to get my car repaired sooner than waiting for the other party to accept liability, which they eventually did, so my insurance subrogated theirs and got their money and my deductible back.

 

[MaverickDragon]

Not that unusual as it may not be worth the wait while the other insurance company drags their feet.

You can sue or include a claim to settle with the insurance company for taking too long to settle a claim, as they are legally obligated to handle claims within reasonable timeframes.
If the delay is deemed unreasonable, you may be entitled to interest on the claim amount.

 

[mwelby]

My '24 Lariat was t-boned by a car failing to heed a stop sign. His insurance took responsibility and paid the 14k repair bill including my deductible. It's my understanding I can file a claim with the other parties insurance for diminished value as my vehicle now shows having been in an accident. I guess I would need to establish before and after accident values and present the difference as a claim. Anyone been down this road and how did it work out?

Gerry B, 24 Lariat FWD 15k miles

My guess is that your vehicle was actually totaled because of the structural damage but neither the body shop or the insurance company will tell you that. Where you will really see the hit is if you take it to trade it in on another car - that’s where your diminished value will show up on trade-in value because CarFax will list it as structural damage.

 

[KenR]

I got $500 from other parity insurance company for lost value after about a $3,000 repair on wife's car. The $500 just took two phone calls.

 

[Suzukiridr14]

Good luck. You might be better off suing the guy in civil court. Diminished value claims are tricky because you're making a case for the present value of future unknowns, which insurance companies hate. Some of the unknowns are:

• When you're gonna sell the car, if ever. If you never sell the car, or sell it 30 years from now, you just got paid today for a loss you may either never realize or will have a disproportionate payout.
• What the future value of the vehicle will be if/when you decide to sell it, depending on mileage/condition/market, etc etc. If you sell it tomorrow, you should rightfully get a larger payout. If you sell it in 30 years, the present value of that future diminished value might be a hundred bucks.

You stand a better chance if you eliminate the main unknown of when you plan on selling the car. If you got, say, AutoNation and CarMax 7-day offers on deck and can reasonably prove that you plan on selling within the next month or two, you can make a stronger case that the vehicle would be worth more if it had a clean history.

Insurance exists to "make you whole" after a loss. In their eyes, you're made whole by having a repaired vehicle because those are actual realized losses with a known present value.

It's the same reason why rarity has little effect on payout. So if you had like, a '25 Eruption Green Maverick bought brand new in a configuration that isn't common (say, it was a fleet XL with a power seat) that was totaled, they can't rewind time and get you a new one exactly like it. They just punch in the options/condition/etc, get the value at the time of loss, and cut you a check so that you can buy a used one "of like kind and quality" to make you whole.

Thank you for your reply to this question. I hope to never need this information, but it makes me fell good to know how the system works.

 

[Cancunbadlands]

Do not initiate the diminished value claim until the physical repairs are fully completed and inspected.

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