Car's "Diminished Value" After Accident?

[shavefan]

Long story short, a couple of weeks ago some guy happened to smack into my parked car at 3:30am. Insurance is taking care of it and my car's in the shop as I type this. Someone mentioned to me that one can sue the insurance company for diminished value of the vehicle due to the accident. Basically the vehicle is now worth less because it has been involved in an accident and from what I understand the insurance company has the obligation to make me whole. I've researched a bit and what I'm finding is that results are all over the map. Anyone here ever been through this? Advice is appreciated.

 

[kelbro]

Good luck. Most of the insurance companies have a max $$ or max percentage that they will reimburse you. Documenting the diminished value is where they get you because it's ultimately at their discretion.

It is possible that an accident will not diminish the value. My wife had a fender bender in her Vette that added up to over $12K when they were through. It never showed up on Carfax and we sold it for full book trade-in.

 

[RayClem]

If the accident is serious enough to cause major damage (anything other than bent sheet metal, broken glass, and scraped paint), it is likely to affect the resale value.

However, whether you get any compensation for the lost value will depend upon your carrier and your coverage. If you tried to reduce your insurance cost by purchasing from the lowest bidder, do not count you much help.

 

[hydro-magic]

If it's fixed well, it shouldn't affect value too much. So make sure it's fixed well. The paint should match. Look at it under several different types of light to be sure you can't tell the color of the new paint from the old. Make sure the doors, trunk lid, hatch, etc. have the correct gaps, line up correctly, and seal so water can't get in. If the shop hasn't fixed it well, don't take it back. Take pictures that show the problems then force them to redo any work that isn't done correctly.

 

[BigFoot]

I always lease, this is a concern for me. I need to talk to my leasing agent if an accident affects residual at lease end.

 

[ackvil]

The problem you will find is that every accident no matter how small is reported and appears on a CarFax report.

As an illustration, I was in Indiana on family business when I brought my car to a car wash to remove the salt and dirt. The car wash dented the back of the car and crackedd a taillight lens in the process. The cost to repair was about $600. Three years later I went to trade in the car and learned that the CarFax Report reported the damage and the dealer assumed the car had been in an accident and, therefore, lowered the trade-in value. Fortunately, I had the original paperwork reporting the damage which showed the car was not involved in a collision.

 

[BigFoot]

The problem you will find is that every accident no matter how small is reported and appears on a CarFax report.

As an illustration, I was in Indiana on family business when I brought my car to a car wash to remove the salt and dirt. The car wash dented the back of the car and crackedd a taillight lens in the process. The cost to repair was about $600. Three years later I went to trade in the car and learned that the CarFax Report reported the damage and the dealer assumed the car had been in an accident and, therefore, lowered the trade-in value. Fortunately, I had the original paperwork reporting the damage which showed the car was not involved in a collision.

I am trying to make a lawyer joke out of this Jim.

 

[ackvil]

I am trying to make a lawyer joke out of this Jim.

No, Scott, it's an insurance joke!

 

[RayClem]

No, Scott, it's an insurance joke!

Insurance agent jokes, lawyer jokes? Is there a difference?

 

[Esox]

If it's fixed well, it shouldn't affect value too much. So make sure it's fixed well.

Wise advice above. Not all insurance adjusters are the same and they dont all know vehicles as intimately as you might.

I had an accident with my 1984 GMC short box 4x4. It was lifted 4 inches with 35" BFG Mud Terrain tires on it. A brand new Ford Crown Victoria taxi with a brand new driver pulled out in front of me and I hit that car right in the door post at 40MPH. I didnt even have time to hit the brakes so he took the full force. If he had been wearing a seat belt he would have been killed.

Visible damage to my truck was right side fender, headlights, headlight bezel, front grill and front wheel. The car was a writeoff. I pushed the pillar between front and back seats over to the dome light in the middle of the car.

Only after the insurance adjuster filed his report and wheel, fender, grill, headlights and paint was fixed did I find out the rear of the right front spring shackle, rear of the right front leaf spring, main tie rod and sway bar was bent and I needed new ball joints on the right side. I had signed off on the adjusters report so I was screwed and had to buy all new parts and bushings.

Go over the vehicle with the adjuster and look for everything that can be damaged in the direction of impact and point it out to the adjuster on the spot. They rarely catch all the damage.

 

[shavefan]

Wise advice above. Not all insurance adjusters are the same and they dont all know vehicles as intimately as you might.

I had an accident with my 1984 GMC short box 4x4. It was lifted 4 inches with 35" BFG Mud Terrain tires on it. A brand new Ford Crown Victoria taxi with a brand new driver pulled out in front of me and I hit that car right in the door post at 40MPH. I didnt even have time to hit the brakes so he took the full force. If he had been wearing a seat belt he would have been killed.

Visible damage to my truck was right side fender, headlights, headlight bezel, front grill and front wheel. The car was a writeoff. I pushed the pillar between front and back seats over to the dome light in the middle of the car.

Only after the insurance adjuster filed his report and wheel, fender, grill, headlights and paint was fixed did I find out the rear of the right front spring shackle, rear of the right front leaf spring, main tie rod and sway bar was bent and I needed new ball joints on the right side. I had signed off on the adjusters report so I was screwed and had to buy all new parts and bushings.

Go over the vehicle with the adjuster and look for everything that can be damaged in the direction of impact and point it out to the adjuster on the spot. They rarely catch all the damage.

Mechanically and structurally I know my way around vehicles. When the adjuster came out I could tell pretty much straight away that he wasn't on top of his game, I needed to point out several pretty obvious things he missed. When the initial estimate came in I literally laughed. $3,700. I told my wife "yeah, we'll see how that goes...". The body shop's claim is up to nearly $8,000. When I met the manager of the body shop we shot the **** for a while. I'm pretty sure he knows that I know cars and trust me, I'll be looking at the finished work closely.

Anyway, back to the real subject of the thread... I'll go ahead and try for the diminished value thing. Might as well, I figure I have nothing to lose.

 

[Esox]

Might as well, I figure I have nothing to lose.

You might even have something to gain. I'll be curious to hear how it all comes out in the end.

 

[ackvil]

Insurance agent jokes, lawyer jokes? Is there a difference?

Insurance jokes carry a double indemnity.

 

[Alacrity59]

The concept of trade in value is amusing.

 

[ackvil]

The concept of trade in value is amusing.

Out here, the competition among car dealers is fierce. You can get very close to the retail blue book value on a auto in good condition to make the deal happen. In Florida, that would never happen.

 

[Alacrity59]

Out here, the competition among car dealers is fierce. You can get very close to the retail blue book value on a auto in good condition to make the deal happen. In Florida, that would never happen.

I hear you.

Would it be fair to say that you might be better off to sell your old car on the open market before accepting a trade in value? I think a lot of trade in cars just get fired off to auto auction . . . for a couple hundred bucks "as is"

 

[shavefan]

Out here, the competition among car dealers is fierce. You can get very close to the retail blue book value on a auto in good condition to make the deal happen. In Florida, that would never happen.

Same here in the North Texas area

 

[kelbro]

Our trade-in value was very close to retail. Hot market and a limited edition car with super low mileage. I didn't have to worry about bogus cashiers checks, flakes driving our car or folks not being able to secure financing.

 

[shavefan]

Good luck. Most of the insurance companies have a max $$ or max percentage that they will reimburse you. Documenting the diminished value is where they get you because it's ultimately at their discretion...

Yeah, I'm wondering about the best way to document any loss.

...However, whether you get any compensation for the lost value will depend upon your carrier and your coverage. If you tried to reduce your insurance cost by purchasing from the lowest bidder, do not count you much help.

Is this true? I assume all insurance companies, budget or premium, are subject to the same laws within the the state.

 

[shavefan]

Our trade-in value was very close to retail. Hot market and a limited edition car with super low mileage. I didn't have to worry about bogus cashiers checks, flakes driving our car or folks not being able to secure financing.

^^^Yep. If you have a lot of time, don't mind dealing with low ballers and scammers or getting robbed, then you might benefit by selling the vehicle yourself. As has been pointed out, it's area dependent.