Question about frame damage and insurance

[scottmoyer]

I didn't read a lot of the above posts, but you definitely want to go for diminished value. ANY accident that shows up on the record will be a guarantee of lesser value when you sell, or trade in. Even the CarFax commercials show you two identical vehicles with one fixed and the other original. You will get less for the vehicle.

I reached out to a company that does DV valuations years ago against a GEICO insured driver that hit my car. The agent at GEICO kept saying that they can't give more in diminished value than the cost of the repair, which is a lie. A dent on a Lamborghini might cost a couple thousand to repair, but the value loss could be 10's of thousands. The law states that insurance companies are required to make you whole if they are paying. So, a $50k vehicle gets $5k in damages. The insurance company fixes the vehicle, but paint is no longer original/matching and the accident is on record for your VIN. The vehicle is now worth $45k, for a loss of $5k to you the owner. The insurance company needs to make you whole financially.

This only works if it's with a different insurance company and not yours.

I got $5500 in DV on my Mustang, on top of the cost of repairs.

 

[llando88]

So in case it helps anyone out, State Farm called us and told us that since they could not contact their insured, they would pick up the repair, including rental car and diminution of value. Unfortunately, this guy only had the bare minimum coverage, so if the total of the claim is over $10k, we'll have to go settle with Progressive on our end.

My hope is that the frame rails are not bent, and it's just swapping in everything from the receiver on back, and that the repair / rental / DOV is under the limit, but we'll see how this goes. My appointment for the estimate is end of the month.

 

[HSKR R/T]

So in case it helps anyone out, State Farm called us and told us that since they could not contact their insured, they would pick up the repair, including rental car and diminution of value. Unfortunately, this guy only had the bare minimum coverage, so if the total of the claim is over $10k, we'll have to go settle with Progressive on our end.

My hope is that the frame rails are not bent, and it's just swapping in everything from the receiver on back, and that the repair / rental / DOV is under the limit, but we'll see how this goes. My appointment for the estimate is end of the month.

Him having minimum coverage isn't your fault. This is why you file claim through your insurance and let them deal with the other company. They would pay full repair value, and either go after State Farm for reimbursement, or if the coverage limits werent high enough, they will file suit against other driver.

 

[llando88]

Him having minimum coverage isn't your fault. This is why you file claim through your insurance and let them deal with the other company. They would pay full repair value, and either go after State Farm for reimbursement, or if the coverage limits werent high enough, they will file suit against other driver.

Yes, I understand. Progressive has already confirmed they would cover anything over, but this way, I may end up not having a claim with Progressive, which would put us at risk of higher premiums down the road.

 

[Darksteel165]

Yes, I understand. Progressive has already confirmed they would cover anything over, but this way, I may end up not having a claim with Progressive, which would put us at risk of higher premiums down the road.

That's not how premiums work.
If you are not at fault your premium can't go up, as they reclaim any money they pay out from the other company. Insurance isn't THAT evil.

Insurance is just that, insurance.
If you are only insured for $10k for an accident and you hit a lambo you are still responcrable for the FULL repair even if it's more than your insurance would cover.

HSKR is dead on for this, especially if you start to get dragged around from his insurance then you need to start the process over with yours, and if it's weeks/months later progressive may deny it stating a claim should of been opened when it happened.

Best of luck with the repairs though.

 

[llando88]

That's not how premiums work.
If you are not at fault your premium can't go up, as they reclaim any money they pay out from the other company. Insurance isn't THAT evil.

Insurance is just that, insurance.
If you are only insured for $10k for an accident and you hit a lambo you are still responcrable for the FULL repair even if it's more than your insurance would cover.

HSKR is dead on for this, especially if you start to get dragged around from his insurance then you need to start the process over with yours, and if it's weeks/months later progressive may deny it stating a claim should of been opened when it happened.

Best of luck with the repairs though.

Yes, I understand what's being said. I just don't happen to agree, is all. And that's ok.

I'll post back how the repairs go.

 

[HSKR R/T]

Yes, I understand what's being said. I just don't happen to agree, is all. And that's ok.

I'll post back how the repairs go.

Agree or not, that's how the process works. You pay for insurance, and that protection. People are too scared to use the services they pay for because they don't understand how it works.

 

[Darksteel165]

Agree or not, that's how the process works. You pay for insurance, and that protection. People are too scared to use the services they pay for because they don't understand how it works.

This is true but it's a free country. So if he wants to pay and not use it, that's on him. Cheaper insurance for the rest of us LOL.

 

[llando88]

Agree or not, that's how the process works. You pay for insurance, and that protection. People are too scared to use the services they pay for because they don't understand how it works.

Like I said up thread, and that you seem to keep missing, if I file with Progressive, I carry a large deductible on the truck ($1K), and would not be able to claim DOV with Progressive. Given this is my second accident in the truck, a '21, I'd be looking at significant resale hit. The DOV for the first one was $1.1k, I would expect DOV on the second to be at least that, maybe more. The first DOV was computed by a third party service employed by the at-fault drivers company (Auto Owners), I am not sure yet how State Farm does it. The estimate for the first accident, which did not affect the receiver, was $1.7k. That covered replacing everything from the two bumper brackets all the way back to the bumper shell, step pad, trim, labor etc. etc.

Maybe a potential loss of perhaps $3k is not a concern for you, but it is for me. Going to State Farm first allows me to recover up to $10K (with a check for DOV in my pocket, as a part of that). And if the repair estimate exceeds $10K (which, touch wood, I hope it will not), I have the option to decline the repair and re-open my (existing, now closed) claim with Progressive. I only envision it being over $10k if the frame rails are bent, but based on input I've gotten to date, I don't think they are. in addition to the previous parts that were covered, I need a new receiver, at least one exhaust hangar bracket on the left, and probably both Hemi tailpipes. We don't need a rental car and the repair shop is about a mile away from me. Luckily there's no paint work involved, oddly enough.

So, yes, I understand what you are saying, its just not the best course of action for me and my situation. But, whatever, I'm not here on this forum to argue. I'll post back however this ends up, either way.

 

[Darksteel165]

Like I said up thread, and that you seem to keep missing, if I file with Progressive, I have a $1K deductible

The accident was not your fault, there is no deductible...

 

[llando88]

The accident was not your fault, there is no deductible...

Like I said, we already talked to Progressive at length about this, and yes, I would.

But I think I'm done here. I'm not here to argue, and I'm tired of explaining things repeatedly.

Ya'll have a good night.

 

[HSKR R/T]

The accident was not your fault, there is no deductible...

Sounds like he should probably shop around and find a better insurance company than Progressive.

 

[Darksteel165]

Sounds like he should probably shop around and find a better insurance company than Progressive.

I dumped progressive years ago because of other problems. Even an insurance agent can help, I have one through my local credit union.

 

[Willwork4truck]

Depends on your state and the insurance company. Illinois is a state that allows diminished value claims, but it is entirely your responsibility to prove the fully repaired vehicle is worth less that it was before the accident.

My son had a 19’ Limited 1500 and got T-boned by an 18 year old girl going about 25 mph. His truck was fully repaired and seemed fine. 2 years later (2022) when he traded for a new Escalade his valuation was $5K below “normal” trade in values. The dealer told him it was the frame damage note on the Carfax.
I’d sure try for some kind of diminished value as it may cost you on trade if its listed as frame damaged.