Well to be fair .. German sedans lose about 30% value when you drive them off the lot.
I was looking at 4 and 5 year old E63 Benzs for $28k .. was a $90k car new.
Diminished Value Claim - Auto
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Well to be fair .. German sedans lose about 30% value when you drive them off the lot.
I was looking at 4 and 5 year old E63 Benzs for $28k .. was a $90k car new.
I do understand why an insured would be due a diminished value amount but having the insurance company pay the value before the vehicle is sold seems flawed. If they're given a lump sum at the time of the accident but the owner doesn't sell the vehicle for 5-7 years down the road they just made a profit as the difference in market value shrinks over time.
Might be true, but, the loss happened the day of the accident, not 5-7 years later. The insurance company isn't off the hook because the person kept the car for several years.
Keep in mind, if the car gets into another accident 6 months later, the diminished value claim is part of the settlement already. So if its 6 months later and is totaled, the settlement will be minus the payment already received for diminished value.
A significant diminished value claim isn't paid very often. The type of damage it takes to get into a true diminished value usually borders on a total for the car anyway. Now, a higher value car can split the difference, as in this case, but it isn't common.
On smaller claims of a couple thousand, the carrier doesn't want to keep the claim open with reserves for years. They want to done and closed.
Dan
Who told you that? In writing? Its part of the claims history, they may not know what the line items is for, but it will show the claim. They will then ask about it.
Yes, you can file for it again, that part is completely true, but it will be based on the value of the car. You accepted a diminished value payment because the car isn't worth as much now, so when they go to do the next settlement (hopefully, never), they will say the car was in a major accident, oh, it wasn't worth as much as it would have been if it had never been in an accident, lets take $18,000 off the value of the car in the settlement.
No need to see the previous payout. It should be based on the then current valuation of the car, which won't be the same as if it had never been in an accident. This is why they paid the diminished value in the first place.
Dan
DIMINISHED VALUE
New Member
Diminished Value Fact #1: You can make a third-party claim for inherent diminished value in all states. You can only make a first-party claim for inherent diminished value in Georgia.
Diminished Value Fact #2: Repairs that involved either structural damage or air bag deployment will cause a vehicle to lose up to half of its pre-accident Fair Market Value. A minor to moderate repair will result in a vehicle losing approximately 10%-15%. This assumes that the vehicle had no prior repairs.
Diminished Value Fact #2: Repairs that involved either structural damage or air bag deployment will cause a vehicle to lose up to half of its pre-accident Fair Market Value. A minor to moderate repair will result in a vehicle losing approximately 10%-15%. This assumes that the vehicle had no prior repairs.
- 2,797
You're not helping anybody by resurrecting a 7 1/2 year old thread.
- 2,797
I wish I had a buck for every time I've been told I was rude when I told people what they didn't want to hear.
Had you looked you would have found more recent discussions on diminished value for which you could have imparted your wisdom in a more helpful manner.
- 2,797
Whatever.
- 1,506
Insurance1822 died a few years ago! He was great.
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