Car accident - collecting Diminished Value

Discussion in 'After Hours Lounge (Off Topic)' started by Kirk Gunn, Nov 8, 2005.

  1. Kirk Gunn

    Kirk Gunn Screenwriter

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    My wife was in an accident 2 weeks ago that caused ~5k in front end damage to our 2003 Toyota Sienna (unbelievably she's ok except for some bruising).

    Since the book value of the van is still pretty high (~15k), how much of a resale hit will we take when it comes time to sell ? Damage consists of 2 front quarter panels, hood, grill, tire, etc.... My wife was told we could collect "diminished value" from the at-fault insurance company to compensate for this resale loss, but I'm sure they will resist.

    The auto body shop states the insurance company will not pay for "genuine" Toyota body parts, and gets them after-market... Anyone deal with such a mess ?

    Thanks for any feedback.
    Kirk
     
  2. Evan M.

    Evan M. Supporting Actor

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    I think it really depends on when you plan on selling it. Basically the longer you hold on to it I think the less the accident will effect the overall resale value......simply because the "normal" price will also be a lot less. Be happy that it was not deamed totaled. Then you get what the insurance company considers a good amount in return for it.....usually the low number in Kellys Blue Book. I am glad your wife is ok.
     
  3. Kirk Gunn

    Kirk Gunn Screenwriter

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    Thank for the concern Evan, it was a scary day. Nothing like driving to the scene and seeing 3 police cars, fire trucks, ambulance, etc !!! The other driver was a young girl taken to the hospital, but she was coherent before they took her away and we heard she was ok.

    Just to clarify our situation, we are getting the van repaired, but even after repair there will still be a loss in value. The reasoning is as follows:

    2 identical vans are for sale, one has been in an accident in which $5k worth of work was repaired, the other has not. Which one would you buy ? And... how do you determine this loss of value ? I'm not trying to screw the insurance company, but obviously there is a loss on our part.

    For the record, we were going to keep it for a couple more years, but you know that goes....
     
  4. Mike Voigt

    Mike Voigt Supporting Actor

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    Go to a dealer - have them assess the value w/o the accident, and with the accident. Then go for the differential with the insurance company.

    Instructions from mine after I badgered them. Insurance companies generally don't like to admit that there's something called 'diminished value'... it costs them a considerable amount of money, given taht what they collect from you only pays a portion of what they have to shell out...
     
  5. Dennis*G

    Dennis*G Supporting Actor

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    I think it would be near impossible to find that "dimished value" so they would probably just do a flat rate of MAYBE $1000 (and that's pushing it) but I guess the more you can fight it, the more chance of a higher number.

    As far as replacement parts, no insurance company will pay for new genuine parts on a car over 1 year of age. You either have to get third party or get used parts.

    Glad your wife is OK.
     
  6. SethH

    SethH Cinematographer

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    In some states they are required by law to use genuine parts IF the customer requests this. I think some insurance companies are also better about this than others.
     
  7. Kirk Gunn

    Kirk Gunn Screenwriter

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    Thanks folks - I figured it will be a tough battle, but the more I think about it, the more it makes sense.... Especially since our prime reason for purchasing a Toyota was the excellent resale value.

    Google has shown diminished value to be 10-25% of the value of the repair, but considering the sources... which appear to be shady lawyer-types. I wonder if Kevin Trudeau has any advice for this ?
    [​IMG] [​IMG]
     
  8. MarkHastings

    MarkHastings Executive Producer

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    Kirk, I owned a Dodge Avenger (which I bought new) for 2 years, when it was SLAMMED into by a drunk driver. Luckily I wasn't in the car since it was parked on the street.

    It caused $12,000+ worth of damage. They didn't total the car, but they did use genuine parts to fix it.

    I held onto the car for 5 years total. When I bought a new car, the dealer was only willing to give me $1,100 for the car. The car was still like BRAND NEW! I take VERY good care of my cars and the insides were immaculate!

    Of course, I had high mileage on it becuase of the higway driving I did, but that DAMN accident cost me DEARLY!

    Unfortunately you're screwed if you get into an accident.
     
  9. Matt Stryker

    Matt Stryker Screenwriter

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    I read a recent article that diminished value is usually only given in states that require it (I know GA is one) You might search around on Google to make sure MD laws back you up before getting on the insurance companys case.
     
  10. Kirk Gunn

    Kirk Gunn Screenwriter

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    Good point Matt - This is what I tracked down from insure.com:

    States where auto insurance policies can exclude diminished car-value payments

    Alaska
    Alabama
    Arizona
    Arkansas
    California
    Colorado
    Connecticut
    Delaware
    District of Columbia
    Idaho
    Illinois
    Indiana
    Iowa
    Kentucky
    Michigan
    Minnesota
    Missouri
    Mississippi
    Montana
    Nebraska
    Nevada
    New Hampshire
    New Jersey
    New Mexico
    New York
    North Dakota
    Ohio
    Oklahoma
    Oregon
    Pennsylvania
    Rhode Island
    South Carolina
    Tennessee
    Utah
    Vermont
    Wisconsin
    Wyoming
     
  11. Eric Kahn

    Eric Kahn Guest

    Get on your High horse and tell the insurance company that the car will be rebuilt with toyota parts or just have it repaired at the toyota dealer, it is your choice where to repair the car, not theirs
     

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