Diminished Value Claim and a Second Collision...

[owen6288]

I'll keep everyone posted.

Lost Dollar - yes that is my argument. Two exact cars in every way, side by side, the one that had $5k in damage repairs will be worth less. My appraiser says it is worth $4,500 less. State Farm's "desktop appraisal" says $500. I'm meeting with their "on-site" appraiser today.

 

[hesse]

Out of curiosity what does your appraiser value the car at?

 

[VolAgent]

I was curious and looked into this a little.

From what I see, insurance companies have a formula they use to determine diminished value. Now attorneys will tell you the formula is horrible and should never be used. I'm sure insurance companies will say it is beyond fair. Probably somewhere in the middle.

The real point is, the way the formula is structured, you are likely to see little on a diminished value claim. Also, since it has been accepted by various courts, you will have a very hard time overcoming it. I say this not to say you shouldn't pursue it, but that you should expect it to be difficult and you may have to decide if the effort is worth the potential reward.

How insurance companies calculate diminished value claims - Employment Law | Family Law | Bedford | Fort Worth | Dallas

FYI, this is written by an attorney who goes after insurance lawsuits, so it is definitely biased as he sees things. I am willing to accept he has accurately represented the formula, however his commentary is definitely anti-insurance company.

Here is another article on a mechanics' site. Again, not exactly pro-insurance company.

https://www.yourmechanic.com/articl...e-diminished-value-of-your-car-by-elan-mcafee

 

[BlockO]

I am willing to accept he has accurately represented the formula.

I don't get the logic of double dipping mileage. why?

It may be the accurate formula, but it makes me think this is the formula for motorcycles, not autos.

 

[VolAgent]

I don't get the logic of double dipping mileage. why?

It may be the accurate formula, but it makes me think this is the formula for motorcycles, not autos.

Neither does anyone else. They are taking the current value of the car which represents mileage, and then applying a mileage factor as well.

 

[BlockO]

that's why I was thinking motorcycles, since mileage isn't much of a factor as are autos.

 

[VolAgent]

that's why I was thinking motorcycles, since mileage isn't much of a factor as are autos.

I get what you are saying, however 17c has been used for autos. And everyone who has commented on the formula basically calls it double dipping.

 

[BlockO]

well, at least I learned a little bit.... before you posted that link, that 17c stuff was pig latin to me.

 

[dvexpert]

Just Fyi, the 17C formula was created by a court simply to settle a Georgia class action lawsuit against State Farm. It has never been "approved" by ANY dept of insurance in any state and there is no case law that supports this formula(or any any other).

 

[LostDollar]

Just Fyi, the 17C formula was created by a court simply to settle a Georgia class action lawsuit against State Farm. It has never been "approved" by ANY dept of insurance in any state and there is no case law that supports this formula(or any any other).

Re case law: It's been a long time since business law class- but doesn't the formula being used to settle a case make it case law?