Can I ask for car value depreciation compensation?

[oldyoungguy]

A Uber car caused an accident and my car (a 2011 Toyota Camry) was damaged. The faulty driver's insurance company (L) took the liability. I don't have collision insurance. I have to face L company directly. Now my car is in a body shop evaluating the damage. I have a general question about this headache thing. If the body shop estimates a price of $5K to repair the car and the insurance company agrees with the cost, do we have to accept the result? Can we ask for some car accident compensation besides the repairs? I look at the used car websites. Accident records will affect the car's resell value. If we can, what is the reasonable amount to ask for? Based on the condition and mileage of our Camry, the reselling price is around $13K.

 

[Jeanyuhs]

Their duty is to get your car back to pre loss condition, so as long as that 5k repair does that then that's what its going to be.

They're not going to allow you to find a means of making a profit but you can request DOV/DV (diminution of value) but I doubt they'll offer much if anything on a ~12 year old vehicle.

 

[adjusterjack]

If the body shop estimates a price of $5K to repair the car and the insurance company agrees with the cost, do we have to accept the result?

I don't know what you mean by "accept the result." If the car is repairable it's not going to be a total loss. It would be foolish not to have it repaired.

what is the reasonable amount to ask for?

To even guess I would need the following:

Your state.
How many miles on the car.
4 cyl or 6 cyl
Trim (Base, LE, SE, XLE)
Options and features.

 

[oldyoungguy]

To even guess I would need the following:

Your state.
How many miles on the car.
4 cyl or 6 cyl
Trim (Base, LE, SE, XLE)
Options and features.

Your state. --- MA
How many miles on the car. --- 94300 miles
4 cyl or 6 cyl --- 4 cyl
Trim (Base, LE, SE, XLE) --- LE
Options and features --- standard

 

[oldyoungguy]

They're not going to allow you to find a means of making a profit but you can request DOV/DV (diminution of value) but I doubt they'll offer much if anything on a ~12 year old vehicle.

I found more than one similar car (the same brand, model, trim, year, and similar mileage (94K)) online. Their resell price is about $13K. The car is old but its value is still high. If the new cars can request DOV/DV, the old cars should have corresponding DOV/DV as well, I think. The DOV/DV is for reselling. The car's reselling value will be lower because of this accident.

 

[adjusterjack]

For any discussion of a DV claim, the first thing I do is look up the state law regarding DV claims. DV law differs from state to state and is generally addressed by the decisions at the appellate court level.

As a result of my research you are going to have to find out which edition of the auto policy the at fault driver has.

In McGilloway vs Safety Ins Co (October 2021) the MA Supreme Judicial Court ruled that the 2008 edition of the MA Standard Auto Policy obligated the insurance company to pay DV liability claims to third parties on behalf of its insured. The court analyzed the liability section Part 4 and concluded that it covered an intangible such as DV.

"Under this Part, we will pay damages to someone else whose auto or other property is damaged in an accident. The damages we will pay are the amounts that person is legally entitled to collect for property damage through a court judgment or settlement. We will pay only if you or a household member is legally responsible for the accident. We will also pay if someone else using your auto with your consent is legally responsible for the accident. Damages include any applicable sales tax and the costs resulting from the loss of use of the damaged property."

In Merullo vs Amica Mutual Ins Co (December 2022) the US District Court of MA ruled that the 2016 edition of the MA Standard Auto Policy did not obligate the insurance company to pay DV liability claims to third parties on behalf of its insured because the 2016 edition excluded such payment.

In the 2016 edition, Part 4 was written to specifically exclude DV.

"Under this Part, we will pay for damage or destruction of the tangible property of others caused by an accident and arising from the ownership, maintenance, or use of an auto, including loading or unloading. The amount we will pay is the amount the owner of the property is legally entitled to collect through a court judgment or settlement for the damaged property. We will pay only if you, a household member, or someone else using your auto with your consent is legally responsible for the accident. The amount we will pay includes, if any, applicable sales tax and the loss of use of the damaged property. The amount we will pay does not include compensation for physical damage to, or towing or recovery of, your auto or other auto used by you or a household member with the consent of the owner, or any decreased value or intangible loss claimed to result from the property damage unless otherwise required by law."

First thing in the AM call the adjuster of the other driver's insurance company and ask which edition of the policy the claim is being handled under.

If that insurance company doesn't use either standard policy, you'll want to find out what the wording of Part 4 is to see if the same exclusion applies.