There have been a bunch of posts about unfortunate Vette accidents on the forum recently. This makes me want to ask the following:

Has anyone ever had success in recovering what's called "diminished value" from an insurance company, (either your own or the other party,) for an accident to your vehicle?

From the website cited below:

"If you've been in an auto accident ... you may be entitled to a check from your insurance company for diminished value. Diminished value is the automatic loss in value from a collision. Almost every vehicle that has been in a wreck will have some form of inherent diminished value.

"It has been estimated that 55% of consumers would not buy a car that had been in an accident. 81% would not have a car that had been in a wreck unless they were given a large discount."

http://www.appraisalgroupofamerica.c...shed-value.htm

Most people I know run a CarFax report before buying a vehicle. I ran one on each and every Vette I considered before purchasing my '04 Coupe. The CarFax report may show accident activity in years prior to your purchase.

It's something every Vette owner should know about if you're ever in a wreck, specially if someone else caused it.

s'noJob

 

After 2 months of negotiations, the at-fault adjuster has doubled the offer, but I have a second DV appraisal report to send to her. The first report helped some but not enough.

 

The Insurance companies definitely do not like to pay out DV. The above article is accurate in regards to the way people shy away from vehicles that have been in an accident. Even though the vehicle may have been fixed to "as new" condition, many individuals will not consider purchasing it. I think this is where the biggest DV comes into play because you are left dealing with only the individuals looking for that big discount since the vehicle was in the accident.

 

Do a search for my posts on diminished value. Lots of info.

 

Here are a few links to articles on diminished value. As an expert in calculating these losses I see consumers - both insured and claimant - collect for diminished value nearly every day.

Diminished Value Slideshow

Diminished Value: Your Auto Insurance Company's Best Kept Secret

Diminished Value Claims Get Bum Rap in Media

Safe Collision Repair Statistics Show Average Diminished Value is $6,486.54

David Williams
www.SafeCollisionRepairs.com
www.ConsumersGuideToAutoRepair.com

 

I've appraised quite a few DV vehicles. I understand some states do not allow for it under their policies. Especially for a special purpose car like the vette this can have a higher impact!!

 

A favorite subject of mine, a neighbor came home drunk one night at about 12:30 and crashed through my fence, across my yard struck my car (not the vette) just one payment left and totaled it! Well so the insurance company thought, I made them fix it knowing it would never be the same. I drove it for six months just so I could at least have it paid for....Hired a state licensed automotive engineer to assess the vehical before and after repairs. In CA we have a victum compensation law. The neighbor and his lady lawyer thought I could not do it, but the DA and the judge had other ideas. He was ordered to pay 8K for deminished value, plus all the other costs. By the way sounds like I'm a jurk of a neighbor but waking me up at midnight ripping through my fence, yard slaming my car into my wifes car and both into the garage kinda ticks me off....All said and done, 8K trade in for the car, 10K from the neighbor, about 20K out of the insurance company, plus house insurance paid for fence, lawn, and new spiffy garage door, and 5K from the body shop who said no problem we can fix it like new...LOL....The moral here is when in an accident and your car gets repaired hire a pro to assess the value before and after. You'll find, insurance companies, DA's and Judges very ammenable too agree....rather than fight....and like the neighbors lawyer told the judge, I don't have the damaged car any more he traded the car in on a MBZ S class. Judge "cranky old dude" told her and your point is, he got less for the car than it was worth according to the auto. eng.'s report, if your client ever expects to get off probation and his license back I suggest you be quick about restitution, slamed his lil hammer and off we went....after a year, two court appreances I got my $ for diminished value from the guy who did the damage, if I failed I would be going to my insurance company with an amended claim for DV...

 

Very useful info. I need to save this thread for future use--just in case.

 

It's true that in some states insurance companies sell policies that exclude claims for diminished value. But even in these states, IF THE CAR IS NOT REPAIRED TO PRELOSS CONDITION the insurer has to do something to make the insured whole. This usually involves writing a check, though rarely do they call it payment for diminished value.

Since most cars have flaws and defects after an accident and repair that leave them in an inferior condition to their condition prior to the loss, collecting diminished value is not that difficult in first or third party situations. One just has to have an expert document the damage and place a value on what it takes to bring the vehicle up to snuff. Often, this is more than the diminished value would have been. In most states there is no obligation to have a car repaired the first time, so neither is there an obligation to go back a second or third time to get it right. Simply make a demand for payment

David Williams
www.SafeCollisionRepairs.com
www.AutoRepairResources.com
www.ConsumersGuideToAutoRepair.com
www.CheapestWayBodyShop.com

 

Good info! Thanks!!

 

...now if there were only a way to recover the "internal" diminished value one suffers while driving a "fixed" Vette that was once whole.

(sigh)


s'noJob