Diminished value
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Joined: Sep 2018
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Diminished value
I was recently involved in an accident that was found to be 100% the other persons fault. I just got a letter from Allstate, the other persons insurance. The letter said that if I ever trade the car in and get a statement from the dealer showing how much I got for the trade compared to how much I could have gotten if it was accident-free, they will pay me the difference. I have never heard of this and I wanted to pass it along.
Pro
Joined: Feb 2018
Posts: 685
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From: Texas
That’s an interesting twist on how Allstate intends to handle third party diminution in value claims. I worked as an auto adjuster for Allstate many years ago and I can tell you they play hardball. I don’t think DIV should apply only when or if you trade in your car to a dealer. What about private party sales? Sounds like bad faith to me. I truly hate to recommend you get an attorney but you might want to inquire with one as your options in your state.
Thread Starter
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Joined: Sep 2018
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That’s an interesting twist on how Allstate intends to handle third party diminution in value claims. I worked as an auto adjuster for Allstate many years ago and I can tell you they play hardball. I don’t think DIV should apply only when or if you trade in your car to a dealer. What about private party sales? Sounds like bad faith to me. I truly hate to recommend you get an attorney but you might want to inquire with one as your options in your state.
Racer
Joined: Apr 2018
Posts: 251
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From: So Cal
Sounds like typical Allstate bs to me. They are one of the worst insurance companies. All of their divisions are equally bad, though their homeowners insurance is the probable the worst hardball. Perhaps your insurance could try to persuade Allstate to treat you more fairly?
Pro
Joined: Feb 2018
Posts: 685
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From: Texas
Whom you eventually sell it to should not matter. Things have probably changed but when I last handled diminution in value claims all that was needed was a statement from any used car dealer manager stating how much DIV to allow if they were to take the car in on trade. In my opinion the insurer should pay the DIV as of the date of loss and subsequent repairs and not when you might trade it in some years from now and after the statute of limitations for filing a claim has expired. When I worked for Allstate I hated having to argue Allstate’s company stance against DIV when I knew as a car enthusiast that it’s a legitimate claim.
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I agree that the insurance should pay as of the date of the loss and that there should be more reasonable ways to collect, but I just don't see that happening. I'm not involved in the insurance business, so I don't really know how these things go but actually I was happy to get the letter. I was expecting nothing.
Pro
Joined: Feb 2018
Posts: 685
Likes: 443
From: Texas
I agree that the insurance should pay as of the date of the loss and that there should be more reasonable ways to collect, but I just don't see that happening. I'm not involved in the insurance business, so I don't really know how these things go but actually I was happy to get the letter. I was expecting nothing.
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Instructor
Joined: Nov 2010
Posts: 141
Likes: 35
From: Fort Pierce Florida
edzvet, Your car will lose 10%-15% of its pre-accident trade-in value as a result of undergoing repairs for minor crash damage and the resultant repair history.
Interesting response from Allstate but get a clarification.
Just this week, on a conference call involving myself, the car owner and the insurance claims handler, the insurance rep stated there was no loss in value until the car was sold. I asked whether that meant that they would compensate the car owner for the amount he lost when selling his car, she quickly restated that she never said that and amended her statement by saying "after the car owner sells the car then they would "review it."
Knowledge is power. Make all of your correspondences in writing. Had the claims handler made her original "offer" in writing, the car owner could potentially sell his car to a family member at a deep discount and collect the difference from the insurer.
Interesting response from Allstate but get a clarification.
Just this week, on a conference call involving myself, the car owner and the insurance claims handler, the insurance rep stated there was no loss in value until the car was sold. I asked whether that meant that they would compensate the car owner for the amount he lost when selling his car, she quickly restated that she never said that and amended her statement by saying "after the car owner sells the car then they would "review it."
Knowledge is power. Make all of your correspondences in writing. Had the claims handler made her original "offer" in writing, the car owner could potentially sell his car to a family member at a deep discount and collect the difference from the insurer.
Drifting
Joined: May 2018
Posts: 1,478
Likes: 984
From: Houston Texas
Property and casualty insurance companies improve their financial results by two ways, minimize payouts and defer them (time value of money). This does both. You would want the diminished value now, as the value of the "accident" falls as the car gets older. Also, you do not have the use of the money. Good luck. Please post back if you pursue it now, I would be interested to hear.
Racer
Joined: Apr 2012
Posts: 378
Likes: 188
F'ck Allstate.
My wife and I were driving through a parking lot and some person back straight into us. Because they impacted our lear left quarter and Allstate "considers that part of the rear of the car" they said it was a no fault since apparently we backed into eachother cause it was rear to rear collision by their definition.
My wife and I were driving through a parking lot and some person back straight into us. Because they impacted our lear left quarter and Allstate "considers that part of the rear of the car" they said it was a no fault since apparently we backed into eachother cause it was rear to rear collision by their definition.
