Minor Accident - Diminished Value Claim Thoughts

[Oldphart]

HI Guys,

Well I got run into yesterday on the way home. Other party is at fault as she ran a stop sign. Have witnesses and she fessed up to the cops so there is no question there. She was actually stopped when I first saw her but then she just started to cross as I was crossing. No traffic controls on the street I was on. Very minimal damage as she wasn't going very fast when she hit me. No injuries thankfully.

She also had no license but the vehicle was insured by the same company as I have (Progressive)...friends car. I'm going to go after diminished value this time. The KBB on my truck is in the area of $36k in "very good" condition. I'd rate mine as in the upper end of that category. It's a cream puff, no dents or scratches anywhere - well up until yesterday anyway; just a couple of paint chips on the front end. I'm thinking of asking for an additional $10k in compensation for the loss in value due to the collision.

Am I asking too much, too little? Anyone have any experience with this? I'm trying to keep lawyers out of it.

Thanks group!

 

[scottmoyer]

You're asking way too much if the damage is minimal like you said.

Diminished value is to cover the cost difference between a clean trade/sale and one with damage. I doubt you'll see anything more than $4k-$5k of actual loss difference, if even that much, in today's market on these trucks. Your best bet is to go to a dealership and see what they would give you for trade in knowing there's damage. Then ask them to provide information on trade value if not damaged. I found that to be the closest value to what you can expect. You may be able to swing that value up a little, but I wouldn't think you'd get more than what a dealer provides.

I went through this years ago with a fairly new Mustang GT. The dealer quoted me about $4800 difference between the costs. A professional firm, that cost me $250 for the report, came in at $5500. The insurance settled with me for around $4k, after I already sold the car, so I took the money.

 

[DEG]

Diminished value is to cover the cost difference between a clean trade/sale and one with damage.

Not exactly true. Diminished value is to cover the difference in value between car that was never damaged vs one that was damaged and repaired/reconditioned. It's why dealers want to see a clean CarFax report on your trade-in. Even if the car looks brand new, a negative CarFax collision or flood report diminished the value. Coverage to repair the damage is provided as part of a normal insurance claim.

I don't think the op will get anything beyond the cost to repair the paint chips described.

Different states have different laws regarding diminished value claims. In Texas, it appears one has to prove the value of the vehicle is diminished and prove how much it is diminished. They also must prove your insurance covers diminished value claims, but the state does not require insurance companies offer this service.

Unless there is evidence of damage remaining after the repair (e.g. negative CarFax, paint that's not a good match, or misaligned body panels) I think it would be very difficult to claim a diminished value.

 

[scottmoyer]

Not exactly true. Diminished value is to cover the difference in value between car that was never damaged vs one that was damaged and repaired/reconditioned.

And how is what I said "Not exactly true" when I said the same thing but used different words? The "clean" trade/sale that I mention is referencing a clean report of no damage. That's why I stated in comparison to a damaged vehicle.

Where you're wrong is in claiming that he might only get diminshed value in the amount of the damage. Any damage that causes a negative report, regardless of the cost of that damage could have a negative affect on the resale value. A dented and scratched Lamborghini fender that gets repaired for say $10k, could impact the value by $20k-$30k. I just used that as an example as I have no knowledge of the costs of repairs to a Lambo, but the losses would be greater than the cost of the damage.

 

[Oldphart]

And how is what I said "Not exactly true" when I said the same thing but used different words? The "clean" trade/sale that I mention is referencing a clean report of no damage. That's why I stated in comparison to a damaged vehicle.

Where you're wrong is in claiming that he might only get diminshed value in the amount of the damage. Any damage that causes a negative report, regardless of the cost of that damage could have a negative affect on the resale value. A dented and scratched Lamborghini fender that gets repaired for say $10k, could impact the value by $20k-$30k. I just used that as an example as I have no knowledge of the costs of repairs to a Lambo, but the losses would be greater than the cost of the damage.

This is the reason I am asking, although my amounts are much less. 3 years ago when I bought the RAM, I thought of trading in a 2016 GMC Canyon, again perfect condition. The first dealership I went to offered me a ridiculously low offer. The reason was that Carfax showed it was in an accident, or wreck as the dealership called it. What happened was that while fueling up one day, another vehicle pushed in the lower bumper just a bit. The repair bill was less than 1,000 which indicates just how little the vehicle was damaged. I went thru the insurance company of the person that hit me but I guess all auto repair places and/or insurance companies are required to report to Car Fax(?). At any rate, I sold it to a private party but disclosed the damage to the buyer. He wasn't concerned about the repairs as I had photos. My concern is down the road, I don't want to get penalized for something like this and if I can mitigate this now all the better.

 

[DEG]

And how is what I said "Not exactly true" when I said the same thing but used different words? The "clean" trade/sale that I mention is referencing a clean report of no damage. That's why I stated in comparison to a damaged vehicle.

No, you didn't say the same thing. You said, "Diminished value is to cover the cost difference between a clean trade/sale and one with damage." Someone can receive a diminished value payment and there is no damage at all upon trade or sell. The only thing that diminished the value is a negative CarFax report that shows damage has been repaired.

Where you're wrong is in claiming that he might only get diminshed value in the amount of the damage. Any damage that causes a negative report, regardless of the cost of that damage could have a negative affect on the resale value. A dented and scratched Lamborghini fender that gets repaired for say $10k, could impact the value by $20k-$30k. I just used that as an example as I have no knowledge of the costs of repairs to a Lambo, but the losses would be greater than the cost of the damage.

Wrong again. I never said he might only get diminished value payment in the amount of the damage. I said given the laws in Texas and the minor damage he described, it's unlikely he will get any diminished claim payment at all. As I said, coverage to pay for the damage is part of normal collision insurance and that's all he's likely to receive.

 

[scottmoyer]

Your twisting my words to make yourself look good. Go ahead. I don't need your approvals or acknowledgements. Again, my statement of clean versus damaged is referencing the report. Does the report claim clean or does the report claim damages. Whatever. You be you and be happy with your responses.

Your claim that he isn't entitled to any diminished value in Texas is also incorrect. But, you seem to know better.

TX Diminished Value Claim After Car Crash | FAQ

You could file a diminished value claim after a Texas car crash if your vehicle suffered damages because of another person’s negligence. Learn more here.

loncarlyonjenkins.com

Sorry Oldphart. It looks like you're only entitled to getting your car repaired, according to DEG. However, if you really want diminished value compensation, you may want to look elsewhere than his advice.

 

[DEG]

Your twisting my words to make yourself look good.

I'm not twisting your words in the slightest. I quoted exactly what you said and what you said was factually incorrect. I can't help it if you didn't write what you meant. I can't read your mind.

Your claim that he isn't entitled to any diminished value in Texas is also incorrect. But, you seem to know better.

I never said he wasn't entitled to it in Texas. Apparently you are fabricating my words to make yourself look good or reading and writing is difficult for you. I said given his damage and the laws it's unlikely he will win a diminished claim payout. Also, Progressive is notorious for fighting these claims.

 

[scottmoyer]

OKay, DEG. Whatever.

OldPhart, You do have a claim in Texas and if you end up getting a negative entry on Carfax, you will qualify for diminished value in your state. You need to come up with a real value though and getting it from a dealer can get you close numbers, and an official diminished value report is your best bet, but they come at a cost. In some states, the vehicle has to be repaired before you even mention diminished value to the other's insurance company. Good luck.

Also, based on the responses you see here, you need to be cautious taking advice from these group forums as incorrect info is readily available.