Diminshed value claim

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Jpro
Posts: 1
Joined: Sat Aug 31, 2019 4:41 pm

Diminshed value claim

Post by Jpro » Sat Aug 31, 2019 5:15 pm

Hi,

Thanks in advance for any advise I may receive on this topic.

July 25th my brand new 2019 GMC Sierra crew cab truck was involved in a not at fault collision. I had only owned the truck for about two weeks and there was about 550 miles on the odometer. I paid 54k for it. The total damages were extensive and came to about 19k. The other drivers insurance company (Ohio Mutual) 100% refused to total the truck. I sent it to the body shop to be repaired and last Friday I picked it up. I'm going to be reaching out to the the other drivers insurance company on Tuesday to request diminished value compensation.

I've read a little bit about the 17c formula and after running the numbers it appears that if they use this formula they will offer me about 3,200.00. I don't think this is sufficient in recovering the diminished value of my truck that was just repaired to the tune of 19k and will now have a major black eye on a vin check report.

My questions are: Has anyone else had to deal with a DV claim on such a new and low mileage vehicle and do you have any advice to offer? Do I have a real case for more then what they'll offer under the 17c formula? Should I just get my attorney involved right from the get go, or do I have a real chance to get to a desirable settlement offer without his involvement? As I mentioned, I'm going to start the process on Tuesday and I'd like to be as informed as possible when I make contact with them. Also, I'm located in Maine if that has any relavance.

Thanks again for advice anyone has on how to proceed with this...

strafe
Posts: 964
Joined: Sat Mar 03, 2007 12:49 pm

Re: Diminshed value claim

Post by strafe » Sat Aug 31, 2019 5:42 pm

IANAL but entitlement to diminished value compensation varies by state. You should lookup the rules for Maine.

The amount involved for a pickup truck is small enough that it may not be worth engaging a lawyer.

If diminished value claims are allowed in Maine but insurer will not pay an appropriate amount, small claims suit against the owner may be an option.

There are diminished value appraisers. You can also get trade in quotes from dealers.

As a negotiation strategy may be worth keeping any medical claim settlement open until this is resolved. (Hope you fared ok.)

Either way I would replace the truck.

Jim Beaux
Posts: 49
Joined: Sun Jul 23, 2017 4:29 pm

Re: Diminshed value claim

Post by Jim Beaux » Sun Sep 01, 2019 2:20 pm

My wife's brand new 2000 Honda Accord was hit by an uninsured driver (Texas). After the deductible the balance was around 3K. The car listed for $25K and I expected 10% DV ($2500) The insurance company told me they didnt pay DV. I told them they would.

They danced around with me and thought they could wait me out. My argument was if there were 2 identical cars and everything equal, which would be the preferred? The one that had been wrecked or the one that was pristine and just how much $$ would it take for a potential buyer overlook the damaged car? The adjuster held fast.

I contacted used car dealers and body shops for appraisal statement and didnt get a lot of help as they had no skin in the game and feared having to appear in court.

I had time and didnt need the money, so time was on my side. One day I received a call about settling, again without DV. I responded that everyday was money in my pocket & the day was coming when I would take them to small claims in MY COUNTY, and they would have to pay a lawyer and if they were ruled against, court costs and interest. I also reminded them that as a local voter, Im sure the JP would give me every consideration possible over some hot shot insurance lawyer. 8-)

A few months later a manager called and asked what it would take for me to go away. I never conceded a dime or compromised. I repeated almost word for word every time we talked. "All I wanted was the money I was out, interest and of course DV". He exclaimed, is that all? I said yep. He appeared outraged that his people had let this drag out, and said he needed to clear the books and I could expect a check very soon.

I dont remember how long this went on, but probably 6 months and the entire time I stayed cool, friendly and steadfast.

As I understand, the laws have become more favorable for the insured and there is a better system, ie mediation, for insureds collecting DV. I also understand that there are adjusters who will establish DV to the insureds. Google should help you.

pennylane
Posts: 244
Joined: Thu Apr 12, 2018 10:22 am

Re: Diminshed value claim

Post by pennylane » Sun Sep 01, 2019 3:10 pm

Diminished value of a car is 10% of market value. It may not be worth fighting for.

Jim Beaux
Posts: 49
Joined: Sun Jul 23, 2017 4:29 pm

Re: Diminshed value claim

Post by Jim Beaux » Sun Sep 01, 2019 8:20 pm

pennylane wrote:
Sun Sep 01, 2019 3:10 pm
Diminished value of a car is 10% of market value. It may not be worth fighting for.
Seems the insurance company doesnt have the same opinion. :happy

pennylane
Posts: 244
Joined: Thu Apr 12, 2018 10:22 am

Re: Diminshed value claim

Post by pennylane » Mon Sep 02, 2019 8:03 pm

Jim Beaux wrote:
Sun Sep 01, 2019 8:20 pm
pennylane wrote:
Sun Sep 01, 2019 3:10 pm
Diminished value of a car is 10% of market value. It may not be worth fighting for.
Seems the insurance company doesnt have the same opinion. :happy
OP states that the insurance is offering him $3200 when he paid 54k for the vehicle.

Vehicle is probably worth about 40k now. 10% is a real world number. That’s what a dealership would knock an accident car compared to non accident car.

jcchen
Posts: 87
Joined: Mon Oct 27, 2014 11:08 pm

Re: Diminshed value claim

Post by jcchen » Mon Sep 02, 2019 8:25 pm

carfax website will estimate value of your car post accident for free. give your vin. vin will indicate car has accident.

Helo80
Posts: 1079
Joined: Sat Apr 29, 2017 8:47 pm

Re: Diminshed value claim

Post by Helo80 » Mon Sep 02, 2019 8:42 pm

Funny... insurance companies always dance around DV claims and pretend like something super obvious prohibits you from what you're entitled to.

Also, OP --- sent you a PM for a guy that may know a guy.

bbqguru
Posts: 87
Joined: Sat Sep 17, 2011 8:31 pm

Re: Diminshed value claim

Post by bbqguru » Tue Sep 03, 2019 7:49 am

Ran into a similar issue earlier this summer when my wife and I got hit. We have a 18 Lincoln Navigator with around 20,000 miles, and asked GEICO for diminished value. Bought the car off-lease from a dealer for $76k. Total damage was around $9000. Our adjuster went online and found some blue book numbers for good and fair conditions and offered us the difference between the two-- around $1750. Knowing we had a higher trim level and that there aren't many Navigators in existence compared to other large SUVs,

I paid ($400) for an auto appraiser to come and go over the vehicle. They gave a full condition report, pictures, and an entire spreadsheet of vehicles that had been through the national auctions- both damaged and undamaged. Appraisal company came back with a diminished value of $3800. Sent the report and comps to the adjuster and I had a check or $3800 within the week. No questions or hassle. In fact, the adjuster said he appreciated having the report- that they didn't do many diminished value claims (apparently people don't know to ask) and it made things easier for them. Could I have received more, maybe, but at the end of the day, we're keeping the vehicle for at least 8-10 years and yeah...

Helo80
Posts: 1079
Joined: Sat Apr 29, 2017 8:47 pm

Re: Diminshed value claim

Post by Helo80 » Tue Sep 03, 2019 2:32 pm

bbqguru wrote:
Tue Sep 03, 2019 7:49 am
Ran into a similar issue earlier this summer when my wife and I got hit. We have a 18 Lincoln Navigator with around 20,000 miles, and asked GEICO for diminished value. Bought the car off-lease from a dealer for $76k. Total damage was around $9000. Our adjuster went online and found some blue book numbers for good and fair conditions and offered us the difference between the two-- around $1750. Knowing we had a higher trim level and that there aren't many Navigators in existence compared to other large SUVs,

I paid ($400) for an auto appraiser to come and go over the vehicle. They gave a full condition report, pictures, and an entire spreadsheet of vehicles that had been through the national auctions- both damaged and undamaged. Appraisal company came back with a diminished value of $3800. Sent the report and comps to the adjuster and I had a check or $3800 within the week. No questions or hassle. In fact, the adjuster said he appreciated having the report- that they didn't do many diminished value claims (apparently people don't know to ask) and it made things easier for them. Could I have received more, maybe, but at the end of the day, we're keeping the vehicle for at least 8-10 years and yeah...

Yup, and when people do ask, they come up with some BS reason why your car is an exception.

If the truck had 150k miles on it and were 10+ years old, I'd still ask for compensation, but would be thrilled to get a few hundred out of it. But, the extent of the damage --- if it were $19k in damages, such vehicle would have been written off.

Just note BHs, if you're the cause of the accident, you can't claim DV.... (at least in my state). E.g. your brand new GMC fishtails off the road into a concrete barrier.... no DV check. Or, you rear end somebody...same deal.

barnaclebob
Posts: 3964
Joined: Thu Aug 09, 2012 10:54 am

Re: Diminshed value claim

Post by barnaclebob » Tue Sep 03, 2019 2:38 pm

Helo80 wrote:
Tue Sep 03, 2019 2:32 pm
bbqguru wrote:
Tue Sep 03, 2019 7:49 am
Ran into a similar issue earlier this summer when my wife and I got hit. We have a 18 Lincoln Navigator with around 20,000 miles, and asked GEICO for diminished value. Bought the car off-lease from a dealer for $76k. Total damage was around $9000. Our adjuster went online and found some blue book numbers for good and fair conditions and offered us the difference between the two-- around $1750. Knowing we had a higher trim level and that there aren't many Navigators in existence compared to other large SUVs,

I paid ($400) for an auto appraiser to come and go over the vehicle. They gave a full condition report, pictures, and an entire spreadsheet of vehicles that had been through the national auctions- both damaged and undamaged. Appraisal company came back with a diminished value of $3800. Sent the report and comps to the adjuster and I had a check or $3800 within the week. No questions or hassle. In fact, the adjuster said he appreciated having the report- that they didn't do many diminished value claims (apparently people don't know to ask) and it made things easier for them. Could I have received more, maybe, but at the end of the day, we're keeping the vehicle for at least 8-10 years and yeah...

Yup, and when people do ask, they come up with some BS reason why your car is an exception.

If the truck had 150k miles on it and were 10+ years old, I'd still ask for compensation, but would be thrilled to get a few hundred out of it. But, the extent of the damage --- if it were $19k in damages, such vehicle would have been written off.

Just note BHs, if you're the cause of the accident, you can't claim DV.... (at least in my state). E.g. your brand new GMC fishtails off the road into a concrete barrier.... no DV check. Or, you rear end somebody...same deal.
I thought the reason you can't claim DV when you are at fault is the contract with the insurer which likely specifies that DV is not covered for at fault accidents vs state law saying its cant be claimed.

bbqguru
Posts: 87
Joined: Sat Sep 17, 2011 8:31 pm

Re: Diminshed value claim

Post by bbqguru » Tue Sep 03, 2019 3:06 pm

barnaclebob wrote:
Tue Sep 03, 2019 2:38 pm
Helo80 wrote:
Tue Sep 03, 2019 2:32 pm
bbqguru wrote:
Tue Sep 03, 2019 7:49 am
Ran into a similar issue earlier this summer when my wife and I got hit. We have a 18 Lincoln Navigator with around 20,000 miles, and asked GEICO for diminished value. Bought the car off-lease from a dealer for $76k. Total damage was around $9000. Our adjuster went online and found some blue book numbers for good and fair conditions and offered us the difference between the two-- around $1750. Knowing we had a higher trim level and that there aren't many Navigators in existence compared to other large SUVs,

I paid ($400) for an auto appraiser to come and go over the vehicle. They gave a full condition report, pictures, and an entire spreadsheet of vehicles that had been through the national auctions- both damaged and undamaged. Appraisal company came back with a diminished value of $3800. Sent the report and comps to the adjuster and I had a check or $3800 within the week. No questions or hassle. In fact, the adjuster said he appreciated having the report- that they didn't do many diminished value claims (apparently people don't know to ask) and it made things easier for them. Could I have received more, maybe, but at the end of the day, we're keeping the vehicle for at least 8-10 years and yeah...

Yup, and when people do ask, they come up with some BS reason why your car is an exception.

If the truck had 150k miles on it and were 10+ years old, I'd still ask for compensation, but would be thrilled to get a few hundred out of it. But, the extent of the damage --- if it were $19k in damages, such vehicle would have been written off.

Just note BHs, if you're the cause of the accident, you can't claim DV.... (at least in my state). E.g. your brand new GMC fishtails off the road into a concrete barrier.... no DV check. Or, you rear end somebody...same deal.
I thought the reason you can't claim DV when you are at fault is the contract with the insurer which likely specifies that DV is not covered for at fault accidents vs state law saying its cant be claimed.
This sounds correct. We have an endorsement on our policy that will pay diminished value (among many other things) if we're at fault- it's 10% of the cost of repairs. Simple and straight to the point.

Helo80
Posts: 1079
Joined: Sat Apr 29, 2017 8:47 pm

Re: Diminshed value claim

Post by Helo80 » Tue Sep 03, 2019 6:02 pm

barnaclebob wrote:
Tue Sep 03, 2019 2:38 pm

I thought the reason you can't claim DV when you are at fault is the contract with the insurer which likely specifies that DV is not covered for at fault accidents vs state law saying its cant be claimed.

There could very well be riders for DV coverage when at fault.

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