Diminished Value Claim - Auto

[insurance1822]

Is this something carriers are paying for?

 

[Josh]

Yes, depends on state.

 

[todd02]

My M5 nearly got totaled. Over 40k in damage. Farmers didn't offer diminished value but I knew to ask. They initially argued to give me 6k. I went and got an independent appraisal for diminished value and spent $300. I ended up settling on 18k. It's worth the investment to get an appraisal if the car is valuable enough. A wreck on the car fax can drop a cars value 30-50 %

 

[insurance1822]

^ So then it must not be excluded on the policy in your state? You got paid 18k for diminished value?

 

[djs]

This makes no sense to me.
$40K in damage and $18K in diminished value and the car wasn't totaled? What year M5 was it? Mathematically, it could happen, but its right on the edge....

Of course, diminished value claims only come into play in larger loss accidents. You won't get diminished value for a typical fender bender that is easily repaired.

Dan

 

[JDM396]

My M5 nearly got totaled. Over 40k in damage. Farmers didn't offer diminished value but I knew to ask. They initially argued to give me 6k. I went and got an independent appraisal for diminished value and spent $300. I ended up settling on 18k. It's worth the investment to get an appraisal if the car is valuable enough. A wreck on the car fax can drop a cars value 30-50 %

Just saw a case very similar to this. Brand new Lexus LS460, had less than 500 on the clock. Lady nailed it pretty good from the rear. He got ~10K in diminished value? First I'd heard of it, but I don't work in personal lines.

 

[nyc2phi]

Liberty and Erie have new car replacement which are add on's. One year or two years newer then your current model which I offer everyone buying a new car. Only applies to a new car however

Are insureds just SOL when this happens on an old car? I don't know of any carrier offering some sort of gap on an old car, right?

 

[Josh]

This makes no sense to me.
$40K in damage and $18K in diminished value and the car wasn't totaled? What year M5 was it? Mathematically, it could happen, but its right on the edge....

Of course, diminished value claims only come into play in larger loss accidents. You won't get diminished value for a typical fender bender that is easily repaired.

Dan

To be fair, it's easy to drop $100k on a new m5.

 

[todd02]

This makes no sense to me.
$40K in damage and $18K in diminished value and the car wasn't totaled? What year M5 was it? Mathematically, it could happen, but its right on the edge....

Of course, diminished value claims only come into play in larger loss accidents. You won't get diminished value for a typical fender bender that is easily repaired.

Dan

Hit head on going 40 by a drunk driver who swerved into me at a stop light.

Last year my M5 was worth 87k. The diminished value appraisal was that it lost 30k in resell value but seeing as there were no other M5 comps we could find with that kind of damage at resell I settled. I'm sure I am screwed and will have to hold it until I pay it off in 3 yrs but.... It's an M5. She's a lot of fun.

 

[Gulfman]

Interesting....this also falls into interpretation. Value to Who...and what really "is" Market value?