Diminished Value (1 Viewer)

sj

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I got my 100 back, looks great. The insurance called me today about diminished value. He said they give 10% of the repair bill. Mine was 17k so they will write me a check today for $1700. I asked about looking it up online and he said no need that was his job. I took that as just accept our value for it. I looked a little and can't really find an "equation" for how to determine DV. Anybody have any ideas? I will keep searching.


Sean
 
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r2m

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I'm sorry, but what in the world are you talking about?
My best guess it that you were in an accident and the insurance is only giving 10% of the damage? Is diminished value the same as depreciation? If so, can’t you get that from Kelly Blue Book?
 
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Diminished value is the reduction in value to the car from an accident even after the damage is repaired. Theoretically any later purchaser will want to pay less for the vehicle since it was in a serious accident. 17k in body work is a lot and it will show when inspected later.

A first stab would be to run the truck through a used car valuation at Edmunds.com. First with it's initial condition and then using a "rough condition". That's a reduction of around 5K!

SJ - Need to get Year, model and mileage in your sig. Location will help too.

Diminished value FAQ by some internet Collision firm

These guys claim to evaluate your claim online for $14.95 -
Auto,Vehicle Diminished Value Assessment from DVAssess.com
 
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at the end of the day, you're the guy who will have the burden of selling the repaired vehicle. the insurance has the responsibility to make you whole - equal to the position you were in prior to the accident. do not settle for anything less.
 

TheFuzz

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at the end of the day, you're the guy who will have the burden of selling the repaired vehicle. the insurance has the responsibility to make you whole - equal to the position you were in prior to the accident. do not settle for anything less.
^^This. I was in a minor accident recently and trashed my right front fender and turn signal assembly. USAA sent an appraiser out, and cut me a check for $2300, body shop of my choice, no BS (getting an ARB with a chunk of the money, but more on that later :D).

Now I'm not sure what exactly the $1700 is going toward, but as long as the insurance company is fulfulling their obligation to you, your vehicle is properly repaired and you are in the same boat you were in before the accident, then you're good. If not, then you need to push back a little and make sure things are made right.
 
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^^This. I was in a minor accident recently and trashed my right front fender and turn signal assembly. USAA sent an appraiser out, and cut me a check for $2300, body shop of my choice, no BS (getting an ARB with a chunk of the money, but more on that later :D).
Yeah, USAA rocks man!
 
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^^This. I was in a minor accident recently and trashed my right front fender and turn signal assembly. USAA sent an appraiser out, and cut me a check for $2300, body shop of my choice, no BS (getting an ARB with a chunk of the money, but more on that later :D).
 

TheFuzz

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As soon as I get the ARB installed I'll start a build thread...which will include pics of my little booboo. :flipoff2:
 

re_guderian

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^^This. I was in a minor accident recently and trashed my right front fender and turn signal assembly. USAA sent an appraiser out, and cut me a check for $2300, body shop of my choice, no BS (getting an ARB with a chunk of the money, but more on that later :D).

Now I'm not sure what exactly the $1700 is going toward, but as long as the insurance company is fulfulling their obligation to you, your vehicle is properly repaired and you are in the same boat you were in before the accident, then you're good. If not, then you need to push back a little and make sure things are made right.
I'm not sure that's what he's getting at. Just getting it repaired doesn't get you back in the same boat you were in before the accident. When the OP goes to sell a vehicle that has had as substantial of repairs as his had, it won't command nearly the same retail price. I surely wouldn't pay equal for a repaired truck, nor would I even dream of paying only $1700 less for a majorly repaired truck as compared to an original truck. I don't have any direct experience, but 10% of the repair seems kind of low. Is your policy fixed on this? If it were me, I'd actually consult an attorney. The inusurance guy has all the motivation to write this off as cheaply as possible - to your detriment.
 

TheFuzz

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I know, thats why I added the part about "as long as you're in the same boat you were in before the repair", meaning as long as the insurance company takes care of him, he's good. I wasn't inferring that the repair alone would constitute him being made whole. Part of my confusion, much like the OP, is with the "diminished value" side of the equation. I've never been in a situation that required a DV payout, so I'm not sure what "fair" is in that case.

I do agree though that 10% of the repair cost seems substantially low.
 
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I know, thats why I added the part about "as long as you're in the same boat you were in before the repair", meaning as long as the insurance company takes care of him, he's good. I wasn't inferring that the repair alone would constitute him being made whole. Part of my confusion, much like the OP, is with the "diminished value" side of the equation. I've never been in a situation that required a DV payout, so I'm not sure what "fair" is in that case.

I do agree though that 10% of the repair cost seems substantially low.
My dad had this happen with an RSX. He ended up getting an attorney, which the other side ultimately ended up paying for (in addition to the DV). There's a little game where you have to send an official demand letter, they have to reject it, you have to file a notice of intention to sue, etc. At the end of the day, it was well worth it as he got around $3500 DV for a car which probably should have been totaled. The 10% thing would have only gotten him $1100. A quick meeting with an attorney who specializes in this type of claim in your state will cost you maybe $200, but IMO would be worth it. You'll know what to expect and can make an informed judgment call on how to proceed.

With Carfax/Autocheck it's very damaging to have a vehicle with a documented accident no matter how minor. If truly minor, make sure to take pictures to show to a prospective buyer some day so that they may understand how little the damage actually was.
 
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Absolutely take lots of pics of any accident. My wife had a tiny ding on her car from a lady backing into her in a parking lot. $750 fix, but carfax listed it as an accident since the lady used insurance to pay for the work. Just sold the car, and if not for the pics and receipt showing what was done, we'd have had a much tougher time selling for fair value.

Sounds like pics of your accident may not help you though, other than negotiating the DV.
 
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FYI from my personal experience with my fiance's 4 runner:

Sounds like its too late now but body shops are only required to use genuine toyota parts on vehicles 3 years old a newer. Older than that and they can use aftermarket parts.

U can talk to them and press for Toyota parts and get them to budge a little and then show a potential seller that genuine parts were used in the repair.

Deminition of value is negotiable. Your insurance company will do a "market survey" to determine the amount deminished if you fight them over the 10%.
 

sj

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I wasn't really sure what my options were for this. I didn't really feel like getting a lawyer. Maybe it's a life lesson. I spoke with the adjuster earlier and mentioned some of my concerns. He ended up giving $1900 for DV. Reading over this thread, maybe I should have hired a lawyer. I guess I did what insurance companies want.

Good news is that we have lc back, all the work was done by a local dealership with the work being guaranteed for as long as I own the vehicle. They said the only exception is that if I move out of the state I have to take it to a Toyota dealership and they will still cover the guarantee.
 

re_guderian

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I wasn't really sure what my options were for this. I didn't really feel like getting a lawyer. Maybe it's a life lesson. I spoke with the adjuster earlier and mentioned some of my concerns. He ended up giving $1900 for DV. Reading over this thread, maybe I should have hired a lawyer. I guess I did what insurance companies want.

Good news is that we have lc back, all the work was done by a local dealership with the work being guaranteed for as long as I own the vehicle. They said the only exception is that if I move out of the state I have to take it to a Toyota dealership and they will still cover the guarantee.
Well, if you plan on owning the cruiser for a long time, then its of little relevance, as the difference in price between a "pristine" truck and one that's been repaired will get smaller and smaller. :meh: The 100's a great truck, and it looks like they did a great job on the repair, so you shouldn't have to worry about anything.

On the lawyer thing, I tried to "take the high road" once when dealing with a medical issue with one of my kids. Boy, was that a mistake... :rolleyes: It turned out "OK", but only because of the good nature of some individuals, not any institutional benevolence. Despite my abhorrance of frivolous litigation, I will never hesitate to involve a lawyer when dealing with insurance co's, whether automotive or medical. The power of money is just too great to trust people to "do the right thing", even when it's painfully obvious and mutally apparent.
 

TheFuzz

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Bummer on the accident, man... you didn't have to call the cops, did you? :D
I didn't have to, but I did anyway since I'm still somewhat morally responsible (juuuust a little). :D LPD sent a motor cop out (one who I know), he asked what happened, I told him, and he drove away laughing.





I hate you all, by the way. :flipoff2:
 

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