Diminished value claims in NJ? archived

http://articles.moneycentral.msn.com/Insurance/InsureYourCar/YourCarWillNeverBeTheSameAfterAnAccident.aspx

I'd think it would be quite difficult to claim damages based on a non- existent, future possible transaction and win.

If you had a real loss based on the actions of the other driver, you might win. For example, you could prove that you had an agreement to trade-in or sell your car for a specific amount and the accident occurred as you were driving the car to the dealer to turn it in. But you'd probably still have to get it repaired under the policy and then sue the other driver for the remaining. I'm not sure whether a suit would be allowable under "threshold coverage" - if you have it- or would be considered some other kind of suit.

That said, depending on the amount of damage & how it is repaired, the loss may not be that bad. I had several (not at fault) accidents in my 2002 Passat. Only one was bad enough to impact the value. If you are hearing 50% diminished from your dealer, then the frame must have been bent. If it has to be straightened, you should consider fighting to have it totaled; it won't live as long, the structural integrity is challenged and it will cost you less to have another car payment now than not being able to sell it or trade it in.

If only it were as simple as hiring a licensed appraiser and submitting their automobile diminished value report to the insurance company. When prospective clients call us with questions, after they hear the answers, most of them disappear - never to be heard from again. St Lucie Appraisal prepares the best auto diminished value appraisal that can be obtained in any of the 50 states. We hate to turn away business but the cold hard truth is, regardless of the fact that you'll be submitting irrefutable evidence of how much value your car has lost after collision repairs, companies like Allstate, American Family, Farmers, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers and USAA will still offer settlements representing a fraction the actual diminished value. Where do these people vanish to? Perhaps other independent appraisal companies promise huge settlements or maybe people become frustrated and meekly accept these lowball payouts but being dishonest about our customers' prospects is no way to do business. A more reasonable reality is that you'll need to make a formal complaint to your state's insurance department for unfair claims practices and, perhaps, go so far as hiring an attorney. But in the event your complaint escalates into a courtroom battle, you'll be asking for compensation for appraisal and attorney fees on top of your diminished value and there's a good chance you'll win! Why? Read on.

The automobile diminished value report you receive from St. Lucie Appraisal is based entirely on the opinions of used car managers at automobile dealerships. Was your Honda wrecked and repaired? Our report provides six quotes from Honda dealerships that specifically address your actual vehicle and the exact amount and severity of damage that was repaired. When people trade their cars in, those are the guys who buy them so their opinions are valid. Other appraisal companies providing diminished value reports may use formulas such as the inappropriate (as ruled by The Georgia Supreme Court) Rule 17-C or collect data from auto auctions to formulate their figures. I'm not guaranteeing success if you march into court with this type of appraisal. Insurers can successfully argue that they do not address your specific car or the damages it incurred.

The Georgia Supreme Court's ruling on the inequity of Rule 17-C laid the foundation for fair automobile diminished value settlements in all 50 states. Formulas such as State Farm's Rule 17-C severely shortchanged vehicle owners and, in doing so, provided themselves and other insurers using formulas to determine diminished value with unjust enrichment.

Subsequent to your accident, the adjuster from the responsible driver's insurance company will offer you a settlement for diminished value. If you ask them how they came up with the figure they will either point to a formula, a "certified" appraiser's report or simply refuse to explain their process altogether. I have seen the diminished value reports prepared by independent appraisers hired by insurers and they are a joke. They contain no reasonable facts to back up their assumptions. Most of them are not licensed in any state. Note that "certified" appraisers belong to pay-to-be-certified organizations, not unlike the Better Business Bureau and should not be confused with "licensed" appraisers. A number of insurance company attorneys have contacted St. Lucie Appraisal in the past to inquire about hiring us. Once they learned about our process of using dealer quotes, however, their interest faded quickly as they realized that our reports would result in higher (translation: fair) diminished value settlements. In front of a magistrate or mediator, these types of reports provide actual evidence of how much less your car is worth in the real world. Appraisals based on formulas or auction results can not compare. And insurance company diminished value estimates made up out of thin air (yes, they do exist) will certainly be looked upon as unfair at best and possibly fraudulent in the eyes of a judge.

Face it, even your own insurance agent or broker hasn't informed you of your right to collect diminished value from the insurer of the responsible driver. Regardless of the fact that the settlement isn't even costing your own insurer a dime, agents are mum on the subject altogether. Automobile diminished value is the newest thorn in the insurance companies' side. Their mission is to keep it a secret and their hope is that it will go away.

They have an obligation to restore the car to its pre-accident value.

I just went through a car accident and received payment for a diminished value claim - in addition, to the cost to repair the car.

We had a new car, which was hit - no fault of ours. The other side's insurance covered the repair and then we filed a diminished value claim. Therer are several calculators on the web to estimate the diminished value - about $2,000 in our case - as the damage wasn't extensive. The other person's insurance company countered with $200 and we finally met in the middle at $1,200.

Google "diminished value claim" and you will see several entries and calculators. They aren't all free but you need a starting point for your discussions with the insurance company.

I have a "gap" provision which makes up the difference between value and amt owed. I don't know how this could work though if you owned your car outright.We are leasing so technically don't own the car but are responsible for keeping it insured.