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Posted: 4/23/2013 11:10:22 AM EDT
Long story short.
I was rear ended while driving my '75 Porsche 911.  Did about $1200 worth of damage.
My car is not in perfect cosmetic shape and so I am going to add money to this and have the whole car painted. I am requesting that the insurance co of the person that hit me (state farm) compensate me for some sort of reduction in value due to the accident.
My argument is that if my car were put next to a similar car in comparable condition, mine would be worth less due to the accident history.

State Farm is the rejecting claim.  They say that I have to have the damage repaired, then they inspect it and then make a decision.  
Once again, my argument is that even with perfect repairs, my car now has an accident history and has been devalued.

Has anyone dealt with this before?
They have rejected me twice now and I am waiting on another call from them.
What legal options do I have?
I was thinking file suit against the person that hit me in small claim court, but maybe I am wrong.
Happened in TN.

Thanks in advance for the info.
Link Posted: 4/23/2013 11:13:53 AM EDT
[#1]
I don't think it works that way.
 
Link Posted: 4/23/2013 11:15:49 AM EDT
[#2]
Quoted:
Long story short.
I was rear ended while driving my '75 Porsche 911.  Did about $1200 worth of damage.
My car is not in perfect cosmetic shape and so I am going to add money to this and have the whole car painted. I am requesting that the insurance co of the person that hit me (state farm) compensate me for some sort of reduction in value due to the accident.
My argument is that if my car were put next to a similar car in comparable condition, mine would be worth less due to the accident history.

State Farm is the rejecting claim.  They say that I have to have the damage repaired, then they inspect it and then make a decision.  
Once again, my argument is that even with perfect repairs, my car now has an accident history and has been devalued.

Has anyone dealt with this before?
They have rejected me twice now and I am waiting on another call from them.
What legal options do I have?
I was thinking file suit against the person that hit me in small claim court, but maybe I am wrong.
Happened in TN.

Thanks in advance for the info.


I don't think that argument will hold much water. If you could argue that successfully, couldn't every person who is in a car accident say the same thing, since every car in an accident now has an "accident history"?

With a classic or antique car, a good lawyer might be able to spin something like that, but I've never heard of it.
Link Posted: 4/23/2013 11:17:27 AM EDT
[#3]
I have dealt with this. I paid $350 dollars for the DV report and got another $6000.00. Travelers insurance was the carrier for the other person and my car was alot newer. It took 18 months to settle the case as I kept refusing the offer. they also gave me the money under the "injury" settlement so as not to admit it was for DV. If you are willing to wait and fight go fo it. Be ready to go all the way. You may have to go to court.
Link Posted: 4/23/2013 11:19:09 AM EDT
[#4]
It varies by state.  Find an experienced lawyer.
Link Posted: 4/23/2013 11:19:42 AM EDT
[#5]
RPMG - Where did you obtain a "Diminished Value" report?
Thanks,

I have not requested any sort of monetary amount  I just told them that the value of the car had gone down.

To the other posters - YES everyone that is the victim in a car accident should request compensation for diminished value.  The number will vary car to car.
Link Posted: 4/23/2013 11:20:08 AM EDT
[#6]
Depends on the laws in your state.  In Indiana there is no such thing as diminished value.
Link Posted: 4/23/2013 11:21:57 AM EDT
[#7]
I was told by State Farm I would have to have the vehicle appraised after the repairs in order to get a diminished value settlement. Real pain in the ass and I didn't follow through but lost about $5000 when selling my truck to Carmax as they could tell it had been damaged even though the Carfax was clean. Who knew you could heat and reshape frame rails?!
Link Posted: 4/23/2013 11:22:25 AM EDT
[#8]
If your car has been in an accident before, considering age and the small amount of damage this time, any DV award will be minimal.
Link Posted: 4/23/2013 11:22:54 AM EDT
[#9]
I am traveling and dont remember the name. It was in ATL. If you IM me I will send you the name when I get home tomorrow.
Link Posted: 4/23/2013 11:23:18 AM EDT
[#10]
Since Carfax and other companies tend to fuck you at resale time, this diminished value should become a standard.  

I got fucked by a false hit and run fraudulent report, and Carfax still fucked me at trade in.
Link Posted: 4/23/2013 11:23:32 AM EDT
[#11]
Quoted:
RPMG - Where did you obtain a "Diminished Value" report?
Thanks,

I have not requested any sort of monetary amount  I just told them that the value of the car had gone down.

To the other posters - YES everyone that is the victim in a car accident should request compensation for diminished value.  The number will vary car to car.



It would help if you gave them a number.  As it stands, you gave them nothing, and got nothing in return.

Besides, aren't you supposed to send your insurance after theirs?
Link Posted: 4/23/2013 11:24:12 AM EDT
[#12]
Right, unfortunately I am painting the whole car in addition to repairing the damage that was done.  
Also, my argument isn't the quality of the repairs, it is the fact I now have a previously damaged and repaired vehicle.
I will probably just have to contact an attorney but was hoping someone on here could give me some direction.
Link Posted: 4/23/2013 11:24:29 AM EDT
[#13]
Quoted:

To the other posters - YES everyone that is the victim in a car accident should request compensation for diminished value.  The number will vary car to car.


Hmm you're right, just looked up the FL statute. Never heard of it before. I'd imagine paying a lawyer would cost more than you'd recover (unless you have a $100k+ car).
Link Posted: 4/23/2013 11:25:13 AM EDT
[#14]
I have worked in the autobody repair industry for the majority of the last 12 years, in 3 different states. I have yet to see a customer win when it comes to diminished value. However, I do know each state has their own laws pertaining to it. But unsurprisingly, most of those favor the insurance company. The thought process behind it is that the insurance company owes you for actual damage caused to your person or property. Anything beyond that is speculative.
Link Posted: 4/23/2013 11:25:18 AM EDT
[#15]
Quoted:
Depends on the laws in your state.  In Indiana there is no such thing as diminished value.


I don't know why this is such a grey area.  On what planet is a late model or classic car, read "non-POS", worth remotely the same after sustaining extensive damage and being pieced back together as it was pre-loss?

2 identical cars, placed for sale side-by-side, one with a "history" and the other without.  Which one sells first and which one requires SIGNIFICANT discounting to sell?
Link Posted: 4/23/2013 11:26:47 AM EDT
[#16]
Quoted:
RPMG - Where did you obtain a "Diminished Value" report?
Thanks,

I have not requested any sort of monetary amount  I just told them that the value of the car had gone down.

To the other posters - YES everyone that is the victim in a car accident should request compensation for diminished value.  The number will vary car to car.


I use Nadaguides.com when we have boats that need valued, it looks like your car is 16K-27K in value.
Link Posted: 4/23/2013 11:32:22 AM EDT
[#17]



Quoted:


I have worked in the autobody repair industry for the majority of the last 12 years, in 3 different states. I have yet to see a customer win when it comes to diminished value. However, I do know each state has their own laws pertaining to it. But unsurprisingly, most of those favor the insurance company. The thought process behind it is that the insurance company owes you for actual damage caused to your person or property. Anything beyond that is speculative.


I have to agree with that logic.
 
Link Posted: 4/23/2013 11:39:35 AM EDT
[#18]
Diminished value is VERY hard to get.  Everytone is going to feel that they deserve it - but proving it is another story.  The insurance company will normally claim that based upon your claim and the repairs -m that the car (and by extension.... you) have been made whole.



You would have to prove that the repair failed to restore the car to it's pre-accident value - and that you have suffered a specific, measurable loss.  That is often either very hard or impossible to do.  On an older car - harder.  On a really old car - much harder.



Most insurance companies would rather die than grant it.  And frankly - its easy to put the burden on you to prove it (not just your opinion).



How much was the pre-accident value and how much DV are you claiming - and for specifically what?
Link Posted: 4/23/2013 11:39:46 AM EDT
[#19]
Quoted:

Quoted:
I have worked in the autobody repair industry for the majority of the last 12 years, in 3 different states. I have yet to see a customer win when it comes to diminished value. However, I do know each state has their own laws pertaining to it. But unsurprisingly, most of those favor the insurance company. The thought process behind it is that the insurance company owes you for actual damage caused to your person or property. Anything beyond that is speculative.

I have to agree with that logic.


 


I had my car publicly posted for sale and had several buyers who wanted it.  After the accident, those buyers backed out.
So this is not purely speculative in nature.
Link Posted: 4/23/2013 11:44:09 AM EDT
[#20]



Quoted:



Quoted:




Quoted:

I have worked in the autobody repair industry for the majority of the last 12 years, in 3 different states. I have yet to see a customer win when it comes to diminished value. However, I do know each state has their own laws pertaining to it. But unsurprisingly, most of those favor the insurance company. The thought process behind it is that the insurance company owes you for actual damage caused to your person or property. Anything beyond that is speculative.


I have to agree with that logic.





 




I had my car publicly posted for sale and had several buyers who wanted it.  After the accident, those buyers backed out.

So this is not purely speculative in nature.



But the values we're talking about are entirely subjective.



I'd say you need a lawyer, and a buncha luck. I hope you get the resolution you seek.





 
Link Posted: 4/23/2013 11:44:38 AM EDT
[#21]



Quoted:



Quoted:




Quoted:

I have worked in the autobody repair industry for the majority of the last 12 years, in 3 different states. I have yet to see a customer win when it comes to diminished value. However, I do know each state has their own laws pertaining to it. But unsurprisingly, most of those favor the insurance company. The thought process behind it is that the insurance company owes you for actual damage caused to your person or property. Anything beyond that is speculative.


I have to agree with that logic.





 




I had my car publicly posted for sale and had several buyers who wanted it.  After the accident, those buyers backed out.

So this is not purely speculative in nature.



"Wanting" is no basis for claim or proof of any kind.  Neither is an asking price.  A completed transaction with paperwork IS.



 
Link Posted: 4/23/2013 11:53:19 AM EDT
[#22]
You can hire a professional to make an appraisal of your car, indicating the lesser value after a repair. Google around a little and you will find it. I have done this twice.
Link Posted: 4/23/2013 12:02:21 PM EDT
[#23]
Wife was hit in our 4 runner a cpl years ago. The other guys insurance (state farm) cut us a check for diminished value, about 2200 bucks.. Im in TN.. I basically called them told them I was pissed about my car being hit and that when I tried to sell my car I wouldnt get as much for it now... Tough to say what you need to do since it sounds like they are rejecting your claim anyways..
Link Posted: 4/23/2013 12:05:08 PM EDT
[#24]
Great info wpsharpshooter.

Did they make you go get the vehicle inspected after repairs in order to determine the diminished value?
Link Posted: 4/23/2013 12:41:22 PM EDT
[#25]
Nope, BUT... Only because I accepted their offer.. If I would have declined it I would have had to get it inspected. Then the offer they gave me would have either went up, or down.. I was good with their 1st offer so I didnt pursue arguing about the value lost.
Link Posted: 4/23/2013 12:49:10 PM EDT
[#26]
Just tell them you have back and neck pain and get your money that way
Link Posted: 4/23/2013 1:13:42 PM EDT
[#27]
Diminished value is a valid legal concept.  You deserve to be compensated for the full value of your vehicle, including any reduction in resale value that results from it now having an accident history.

In Tennessee the relevant legal precedent is Senter v. Tennessee Farmers Mut. Ins. Co. (link).

Each of the three factors -- function, appearance, and value -- must be substantially restored. If the repairs restore function and appearance but not fair market value, then the insured is entitled to recovery. We believe that the measure of recovery should be the difference in the fair market value of the property immediately before the accident and immediately after the accident assuming all repairs had been completed.


Insurance companies hate diminished value claims. Almost certainly the contract you signed with your insurance company had you waive any rights to diminished value if your insurance company has to pay a claim to you (for example an uninsured motorist claim).  However, you have no contractual relationship with the other driver's insurance company and your rights to diminished value are intact.

It is not your responsibility to follow State Farm's procedures.  You can just as well demand they follow your procedures. Get the car repaired at the shop of your choice, get an DV report that documents the market value reduction of your car, and sent the bill to the other driver.  If you don't receive payment in a timely manner then take the other driver to small claims court.

Your likelihood of getting what you want from State Farm is directly in proportion to you making them believe that they will have to see you in court if they don't.
Link Posted: 4/23/2013 2:11:47 PM EDT
[#28]
Search google for your city using "<city name> diminished value". There should be numerous shops that specialize in doing it. From the cases I've read about people successfully getting it, they went to court and the payout was always separate from the initial repair payout.

They'll offer most likely 10% of what you can theoretically actually receive if you're willing to wait. Of course your state might not allow it in the first place, that's why you're going to search also for your state: "<name of state> diminished value claims".
Link Posted: 4/23/2013 4:42:11 PM EDT
[#29]
What's real fun is when you get your car totaled and they have state minimum coverage good luck with that
Link Posted: 4/23/2013 7:13:38 PM EDT
[#30]
Quoted:
What's real fun is when you get your car totaled and they have state minimum coverage good luck with that


Why? That's why we have uninsured/under insured motorist coverage. If you don't, then that's your problem for driving a vehicle worth more than the state minimum and not having the proper coverage. Unless you're talking medical bills, then it shouldn't happen as you describe.

In Texas it's 30/60/25. Why the hell would you NOT have full coverage on a car that's value is higher than those numbers?
.
.
.
edited to add: I see in Kenfucky that the minimum for the vehicle is $10k. OK, I'd still have full coverage at that point but I could see the timeframe rapidly approaching to lower it from there(sub $10k). Still though, why wouldn't you want full coverage on a vehicle worth in excess of $10k? Especially if you know that is your states minimum?
Link Posted: 4/24/2013 2:32:21 AM EDT
[#31]
Since the other guy has State Farm Insurance, you are royally fucked: State Farm insurance is rated as the WORST insurance company in the USA, by Consumerist magazine. Really.



This is exactly the kind of claim they will NEVER pay. Even if you file a lawsuit, they will delay and deny payment endlessly, even if they lose. It's just how they do business. Trust me on this.



Once you accept this, you can get your car fixed, and move on with your life.



Consider yourself lucky if you can get them to pay for the actual damage; they increase their profits by denying many legitimate claims.



Have you ever noticed that they advertize more than any other insurance company? It's because they lose customers constantly when they screw them over, and need to replace them with new suckers. It's all part of their business model. They've been doing it for a long time, now.


 
Link Posted: 4/24/2013 3:42:56 AM EDT
[#32]
My lawyer advised me not to seek a diminished value claim.  He said the attorney fees would equal the amount I MIGHT get.



Never forget that insurance companies have iron fists around our balls.  What you deserve means absolutely nothing.
Link Posted: 4/24/2013 2:04:58 PM EDT
[#33]
Quoted:

This is exactly the kind of claim they will NEVER pay. Even if you file a lawsuit, they will delay and deny payment endlessly, even if they lose. It's just how they do business. Trust me on this.

Once you accept this, you can get your car fixed, and move on with your life.


The diminished value claim will be separate from the repair bill. He can take as long as he likes waiting for an additional check while his car has already been fixed for months as if he never filed the DV claim in the first place.
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