"Diminished Value" claims....HELP!

justin

I have a 2001 Honda Civic EX Coupe Automatic. I was in an accident (other guys insurance is paying - his fault), and my car has about $4800 worth of front end damage, including frame damage. Now, I KNOW that I am going to lose money on this when it comes time to trade, because they ask if you had an accident, and that effect the trade amount. Allstate is saying that I need to file a "Dimished Value" claim. No one that I know of knows what that is....including dealers.

Any advice??

Thanks

seanblue

Justin,

I was in a similar situation a year ago, and got no where pursuing a diminished value claim. Insurances will only re-imburse to make you "whole" but that only includes for the car to be driveable, and any bodily injury.

Contact a "Wreck-Check" advisor. And I recommend - trading the car as soon as possible. Otherwise the value continues to decrease in time.

kinley

DV has been dealt with in that venue. Basically, the DV is the difference now between the damaged car (after repair)and an identical car undamaged. Opinions in writing from dealers will usually support the amount of DV. Good Luck

Mr_Shiftright

Thank you kinley.

My advice for a DV claim is to have an independent appraiser do it for you. You cannot sue your own insurance company for DV but you can sue the other insurance company because you didn't sign any agreement with them to waive DV as you did with your company (didn't know you signed that, huh?--well, you did and you agreed to mediation in disputes).

Insurance companies hate, despise and loath DV claims and will fight you to the death, so be prepared for a long haul. The reason I suggest an appraiser rather than a car dealer is that the appraiser to judged to be more "impartial" than a dealer, who has a vested interest in the value of automobiles.

If your car has frame damage, and if you reveal this to the next buyer of your car, you will no doubt suffer some Diminution of VAlue. I'd say, as a rough guide, about 30% off the wholesale price of your car.

DVs are tough to win, and you may need an attorney.

occupant1

don't just not mention it. The frame damage will be revealed especially if you trade it in. About 75% of dealer appraisers are trained enough to notice it in seconds. It's tough to disguise medium to major bodywork. Now changing a fender and a headlight, that's different, you can paint the bolts or in some cases re-use the old ones and you can't tell. But $4800 of damage to a $18,000 car WILL be noticed after repairs. They won't issue you a salvage title because the damage is FAR less than the 70-80% required to total a car. But the damage will probably give you a hit, maybe not more than $500 or so, but that extra money needs to come from somewhere, might as well be from his insurance company.

justin

I will just take it to Carmax, let them appraise it KNOWING it was in an accident, and then ask them what they would have given me had it not been in an accident, or just take an average of nada and kbb values. The car is only three months old - mint condition otherwise. i will keep you posted....car won't even be out of the shop until the week after next I think..

Mr_Shiftright

Well, carmax is not a disinterested party...their appraisal can be legally challenged...it is in their interest to keep the value of your car low. The insurance company will hammer you on that point I assure you. You really need an independent appraisal if you are going to file a DV claim.

mrnimmo

Will vary state to state. In some states, you can collect a DV claim from your own insurer. In my state, you can.

I agree with Shiftright, get several estimates of what the car is worth now. Your adjuster may help if it is in his or her interest. That is, if you (and your insurer) are suing another insurance company. Otherwise, your on your own and may need an attorney.

Mr_Shiftright

What state are you in? In California, 1st party DV claims are VERBOTEN