Car accident - collecting Diminished Value (1 Viewer)

[Kirk Gunn]

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

 

[Evan M.]

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.

 

[Kirk Gunn]

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....

 

[Mike Voigt]

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...

 

[Dennis*G]

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.

 

[SethH]

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.

 

[Kirk Gunn]

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 ?

 

[MarkHastings]

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.

 

[Matt Stryker]

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.

 

[Kirk Gunn]

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

 

[Eric Kahn]

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