DimValue

[pancham]

Looking for suggestions to continue fighting for a fair diminished value for a 2010 Malibu which was in EXCELLENT condition before it sustained $4000.00 of repair to rear. NADA and KBB values show approx $3000.00 of loss in value when one consider that Toyota and Carmax are now offering only $8000 and $7000 respectively. Was at 56000 miles on day of damage. The ATFault insured adjuster is using the 17C formula to offer only $400+ in DV. That I have rejected. As we know the Insurance Commissioner is not in agreement with 17C being applied in all cases as it was only a precedent meant for a particular case. Independent adjusters put my loss at approx $1500.

 

[b61mack]

Take them to small claims court. Present your side. If you lose, you still cost the insurance company about 2k, to defend their position.

 

[djs]

Was the KBB value done at retail? Toyota and Carmax are probably trade-in value. I'm confused totally by your valuation methods.

Lets start with the basics.... Why do you think there is diminished value? Was there structural damage?

Dan
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No worries, I am a moderator, your post wasn't deleted (except the duplicate, which I did delete) or even moderated. It may have taken a moment for you to see it.

If you went to trade in your car and someone told you (without prompting) that your car was suddenly worth $1500 less because of the accident, I'm not disputing this. I just don't see that happen very often, most people I see are trying to get a few extra bucks.

Just to clarify though, a lot of accidents never get reported to anything. Some do, some don't, just depends on the body shop. I do not know of a single insurance company that reports to companies like carfax when they pay for an accident. This could be different in Georgia, but there usually is absolutely no obligation for this to be reported.

If you had frame damage, there probably is some diminished value. With repairs of $4000 though, its hard to imagine significant frame damage (pricing in GA may be different than CA though).

Keep in mind, if you are trading in the car, they will use anything to try to get the price down. Faulting an accident, even if it doesn't really impact the value of the car, is pretty typical for a dealer to do. That is the starting point of their negotiations, doesn't mean its the value of the car. Also, did they rate the car as Excellent, or some other rating? They usually start out at fair and negotiate this a bit. This rating should not have changed because of the accident.

On the otherhand, KBB and other online sources are known not to be that accurate. You have to look at actual car sales for simlar cars in your area to get a better feel for the true valuation.

I have no idea what 17C is.

Dan

 

[pancham]

Was the KBB value done at retail? Toyota and Carmax are probably trade-in value. I'm confused totally by your valuation methods.

Lets start with the basics.... Why do you think there is diminished value? Was there structural damage?

Dan

Dear Sir
Thank you for your response. Yes,there is Dim Value and yes there is structural damage. And I could understand and appreciate your confusion.

Please allow me to say as follows: Every recorded accident and repair, as you well know, would follow the vehicle for the rest of its life. From the moment the Insured takes his vehicle upon the directions of his Insurer/or that of the other Insurer,to an authentic repair shop approved by the Insurers, in consequence of an accident, a full record is made upon the vehicle's history immediately. From that very moment KBB,Car max etc/or any buyer from the public would have access to that record. I am sure you know that too.

From that instant too, the vehicle loses value. That accident now becomes a bargaining point used by the buyer to get you to bring down your asking price and you cannot run away from that.

To deal with that loss,here in Georgia we have the concept of Diminished Value which is the law here in Georgia and every Insured, by virtue of this law, is entitled to be made whole by the Insurer,to the full value of his diminished loss.

Now to your question...my car at the moment before the accident, would have received on average,$11600 in Trade In. These figures were obtained from KBB,NADA and Carmax, as well as Toyota. Ofcourse there would be variations between 10K to 12K.

And I have documents from Toyota and Carmax. Imagine how I felt when the Car Max staff finished his test drive after my car was repaired ( repaired by the dealer to the highest quality ) and came to the desk to talk to me saying sir, (I am paraphrasing) I am afraid the accident ( frame and other structural damage)has had a serious impact on the value of your car and we can now offer you only $7000. And Toyota offered $8000. Ofcourse they would have a financial interest in reselling it to make money...they might sell it for much more as you know.

But Georgians must know about this law...it is their right to be made whole for diminished value...many dont seem to know.

An adjuster would come,take pictures, recommend repairs,authorize rental. And, after the repair, he would cut you a check, even without you asking for it, for a diminished value.

However they always tend to use an irrelevant formula called the 17C. This formula would really rip you off by coming up with a compensation which is far below your loss and ofcourse Insurers would be happy when they can pay you as little as possible. Our Commissioner has made it clear that he does not support the 17C formula which was applied only only a particular case that was held in a court. But our Insurers here tend to use it on all cases because it works in their favor.

So the Insured must now resort to independent adjusters to fight his case even up to the small claims court. My independent adjuster would be proving in court why he believes that my loss is $1500 compared to the $400 which the Insurer is offering.

I am currently challenging and negotiating with the Insurer hoping to come up wit a better offer from them.

Hope this helps.

Shiv

 

[pancham]

Hi Dan

Many thanks for sharing your thoughts and experiences. You have educated me.

17C was a supreme court case here in Georgia ( 2001 or thereabouts) ...Maby-v-State...check it on Google.

Thanks again

Shiv