Story by John Webber • Photography as Credited
You’ve detailed your ride and it’s never looked better. It’s a bright Saturday morning, and you’re cruising to a cars and coffee gathering, ready for a double shot of chrome and caffeine.
Traffic is light, but you get caught at a long red. Waiting, you glance up and catch a fast-moving blur in …
Reading that article on diminished value increased my heart rate, no joke. And the situation hasn't happened to me.
I live in PA and had an accident with a NJ driver who was here visiting.The accident was clearly his fault and he was charged.My antique policy paid the claim to fix my car...around $7500.After repairs completed I filed a DV claim with his ins.co.He laughed at first but when he checked on type of my car and saw they are rare he wrote a check for what I asked for.No lawyers were involved.And my passengers med claims were all paid....2 broked bones in her back...and she rec'd a nice settlement from his ins.co.His ins co treated us fairly.
In reply to sir_mike : Curious why you submitted claim to your insurance carrier? The at fault carrier pays for all damages. I just had an incident with a Collector Edition 96 Corvette where an old guy pulled out right in front of me - I managed to swerve in front to avoid a Tbone collision at 35MPH but landed in a yard with some minor damage and some heart palpitations. I am struggling with them on a DV claim because of the neg effect of ANY accident on record, and the car is low mileage concourse cond with no prior incidents.
tr4head,
It depends on the contract of insurance whether one's insurance policy covers diminished value. It may be an exclusion in the policy. On the other hand, one's insurance company can be expected, under proper coverage, to pay for the repairs to his or her car. Then, the insurance recovers the money spent called subrogation.
For the average car, damage claims limited to bumper cover repairs will likely not result in any meaningful loss-of-value. On the other hand, if a potential buyer was presented with two indentical cars apart from the repaired damage, which car would we expect that buyer to choose? CarFax and other car history reporters cannot vouch, with any level of certainty, that a car has ever been in an accident.
California has laws pertaining to diminished value so there is legal recourse for a properly and appropriately documented claim. The at-fault party, to the extent of that person's liability could turn to their inssurance company and expect it to pay the loss.
Most states require insurance companies to promply and fairly address and pay for calim for which liabilty exists under the at-fault's insurance policy. Remember, no insurance means no coverage. No coverage mean potentially bad news because others can then reach into your pocket for recovery. Carry good insurance with realistic limits. An umbrella policy is an excellent, even necessary idea. Converesly, uninsured motorist coverage is nearly a requirement because so many people are driving without coverage.
It may seem that I am an apologist for insurance companies. I am not. I do not feel sorry for insurance companies, per se. It's a business and they know how to stay profitble. Who I worry about is the person harmed by our negligence and I can assure you that many poeple "wronged" at the hands of another could care less about you.
Get insurance with high limits and get an umbrella policy. Drive smart. For the all spiffy talk in magazine and TV, most of us are, in fact, average drivers. "A man has got to know his limitaions." Clint Eastwood is a very smart, very wise man. (How do you think I learned this bit of wisdom?) It's both smart and responsible to protect yourself and the interests of others who, if not for an accident would remain complete strangers.
Do what you can, but behave yourselves, y'all!
The key to ensuring minimal loss of value to any vehicle is demanding all repairs be completed per the ORIGINAL factory specifications. What do I mean by ORIGINAL? I mean the original manufacturer of your vehicle installed full panels and secured them with proper welds/fasteners and finished them with the correct caulking materials, primers, base coats and finish coats. Additionally, the original manufacturer applied and installed all the OEM bolt on parts. The original manufacturer also constructed the shell of the vehicle in jigs ensuring proper tolerances. Knowing this you should select a repair facility capable of restoring your vehicle to the original pre-loss factory specifications and tolerances. Note proper specs should not include the sectioning of any structural body panels. My point is if you select a repair facility that has a reputation for fit and finish, you should be satisfied with the repairs to your vehicle. If you select a body shop that cuts corners (I.E. sections panels vs full replacement of panels, doesn't color match nor follow paint manufacturers refinish protocols, doesn't utilize OEM replacement parts when they are available, etc) chances are you and future buyers will not be happy with the repairs. All that said - how is diminished value determined? As a former Auto Claim Estimater and Claim Manager, most of my diminished valued settlements were between 10-25% of the repair estimate. The nicer and more expensive the vehicle the higher %age of the estimate. One note of caution; no consideration of diminished value was ever considered due to poor quality repairs. If the repair estimate was thorough and complete and the repairs completed per that estimate and per factory original specifications and tolerances; your vehicle should be restored to pre-loss condition. If the body shop cut corners and it shows, your vehicle definitely suffered some diminished value; but unnecessarily. It wasn't due to the person who damaged your vehicle. Rather it was due to your selection of body shop and the shop's poor quality repairs. So be sure to choose a repair facility wisely; selecting a repair facility with both expertise and reputation. Then be ready to discuss diminished value upon completion of the repairs.
I have 2 questions:
- The insuree has the right to perform the repairs themselves. How does this affect the DV claim? Is an auto body shop required to perform the repairs in order to continue with a DV claim? Can a post repair apprasil be performed without bias if the insuree does the repairs themselves?
- It's common for parts to be, not only hard to find, but flat out not reproduced and not on the market. NOS parts have all been sold off. Though maybe exist in a scrap yard somewhere in the deep woods of South Carolina, like a needle in a hay stack, but who knows for sure. My point is, what happens in a DV claim if parts are irreplaceable? And who declares that a part is irreplaceable.. that all avenues have been exhausted? Where does an appraisal and end verdict of a DV claim land in this scenario?
Thx in advance,
MG
Insurance adjuster here. Keep in mind that most states don’t allow for first party diminution in value claims. You can only claim with the other party’s insurance and if you’re not primarily at fault. (There’s an exception for uninsured motorist claims) It’s also something you can negotiate in most cases and there are companies out there that specialize in total loss and diminution claims. You can also go back and ask for it on old claims! Statute of limitations is 3 years on average.
In reply to DT :
DT, what happens if neither OEM, NOS or Reproduction parts can be found? Nor in good condition used parts. For example, a classic car where there were only 5,000 built, and 90% of them have met the crusher, 10% are restored and not parts cars. A rear quarter panel extension for this Classic car is so smashed that it can not be repaired, and is not available anywhere. What happens? The car is left to live its remaining life span without this part. Crucially diminishing it's value. What is the case here?
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