Vector02

So, I was rear ended at about 50 mph a few weeks ago and my car was SCREWED. Although the other driver was insured, his insurance company is telling me they've never paid a diminished value claim.

Even after repair to the industry standards, it's obvious that the value of my car has decreased dramatically from the accident. I've spoken to 2 different companies that deal in diminished value claims. Each say that the the at fault insurance company, Kemper, will pay diminished value. One company wants between $150-$650 to prepare the claim, but have no guarantee of money recovered. The other company wants a flat 33% of all money recovered plus $99 application fee, but they also don't charge a dime unless I get paid.

From my research, my DV claim will be worth between $3500 and $6000. Does anyone have any experience with this? Should I go with the cheap company to save cash? How hard is it to get an insurance company to pay diminished value??

TS_eXpeed

Interesting.

I've never even heard of it.

If you can find out if you have a decent chance at getting the claim, I would go with the company where you just pay the money regardless. 33% seems pretty steep.

thunder04

iTrader: (1)

Isn't this something the insurance company should take care of?

iTimmy

Diminished value is a gray area and I think it is bull shit, they should have to pay you at the very least, partial diminished value. Unless you are in negotiations about trading the car in, they probably won't pay it. Their logic is, the diminished value today is much greater then say 3 years from now when the car has decreased in value, if you weren't trading in your car now there is no way to determine the correct settlement for diminished value. The only other way to prevent taking the hit is to trade the car in immediately after the work is completed so that it is not on Carfax, if the job is done well most dealers won't be able to tell, carfax is at the very least a few weeks behind, so you have a little window to prevent yourself from taking the hit.

Again, I think insurance companies are screwing over the consumer hard core in this area.

JaredGMS

It's essentially what he would pay an attorney on a contingency basis for the same process in court. He's essentially suing them for the loss of value due to their insured's conduct.

Edit - I say go the contingency route...no loss if you get no $$, and that would put you right back where we are now, right?

TS_eXpeed

I say do it.
Insurance company is just trying to screw him over.

BraveDemon

Speak of the devil; I actually have to file a dimunition in values claim for one of my clients against a major Auto Insurance company. I work at a civil litigation law firm, and am a pending associate awaiting my bar results.

I can tell you generally, that dimunition in value claims are common and if you're not at fault, you will have an extremely likely chance of recovering for the loss of value to your car.

But some general guidelines:

1. The newer the car, the better since diminution in value is readily established.

A client of ours just bought a brand new BMW 335i. A trucker blew threw a red and took out the back end of her car. The trucker's insurance refused to pay for total loss, and had the BMW repaired. She got the BMW back, but we were unsatisfied cause the cost to fix the car was $16.5k. So we sued for dimunition in value, and got her $22k back, plus she has her salvaged 335i.

2. For the price you're looking to recover small claims might be right for you; you should check to see what the small claims amount is in Texas. In CA, a limited civil case is usually under $7.5k, while an unlimited civil case is any recovery over $7.5k. Claims significantly under $7.5k in CA can be settled in small claims court.

In cases where recovery is really low, and liability is ABSOLUTELY clear (as in the other person's insurance company admits total fault), I'd suggest trying small claims court so you can keep the full recovery.

3. 33% of any recovery is standard for civil litigation. Our firm gets 33% of the recovery: whether its a $7.5k recovery or a $2.5 million dollar recovery. I suggest seeing if you can speak to a reputable attorney who your friends might know, and seeing if he can just give you advice (that way you won't have to pay him, or feel obligated to pay). I wish I could help more, but I have no idea what Texas civil courts/local laws are like.

Either way, even if liability is clear, it still might be smart to get an attorney cause a competent one will be able to maximize your chances of recovery, and also get you the most for your loss.

gatrhumpy

iTrader: (1)

Good advice...

keg1997

Let us know what happens...this is very interesting.

Vector02

Great advice. Just what I was looking for...

I'll keep y'all posted. I'm scheduled to get my car back today. 2006 Audi A4 2.0T Quatro. Total repair order was over $7800.

Mongolian

Well, I can tell you right now that you will be laughed at if you file a diminished value claim in CA.

Basically, you really can't substantiate a diminished value claim unless you sell your car after the repair. Courts will not honor diminished value claims in most cases because you really can't prove it, at least in CA, unless you actually sell your car after the accident.

You are basically made whole back to pre-loss condition as far as the insurance company is concerned. If you are not satisfied with the repairs, you can file a diminished value claim, but you really have to prove that your car has depreciated as a result of the accident. The only way to do that is by selling your car and physically having a documented loss.

For brand new cars, there are exceptions. Since your car is not "brand new," you will have a hard time making this claim in CA

This is from my wife (internal auditor of big ass insurance company operating in CA and other States). She was also a liability adjuster for about 4 years. This is only the case in CA. She's not sure how other States operate.

Good Luck