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Diminished Value - insurance question...


chris-dax

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Hey guys...I just got back from the autobody shop that is going to do the repairs on my new car that got smashed into...

 

yeah, my new Mazda3....:mad:

 

so this guy smashes into the back of our car and does $7500 worth of damage including bending the rear axle. Meaning he bashed it real good....

 

So I'm talking to the autobody guy and he introduces me to the term "diminished value" relating to how is accident is going to affect the resale value of my car.

 

Does anyone have any advice for me about pursuing some additional compensation for loss of resale value...? Or any other advice along these lines?

 

Thanks...c-d

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Rear axle? I thought Mazda 3s had multilink independent rear...

Sorry, being a dick. I know.
:p

 

Uh....f if I know...but I can tell you the driver rear wheel was in approximately this position after the collision....:mad:

 

I think he messed up the unibody for sure...:mad:

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You could try to sue the guy who hit you in small claims court for the decrease in your car's resale value, but you'd better be prepared to show the judge some hard documentation on exactly how much resale value has been lost because of the accident. I suppose it's possible, but it don't sound easy.

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I have never heard of it , unless it's a salvaged title , which means the bank would have declared it a total ,and paid you for it , insurance co etc. I don't get it , if it's fixed 100% it shouldn't affect the resale , maybe they can't fix it 100% I would contact your insurance ASAP .

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I have never heard of it , unless it's a salvaged title , which means the bank would have declared it a total ,and paid you for it , insurance co etc. I don't get it , if it's fixed 100% it shouldn't affect the resale , maybe they can't fix it 100% I would contact your insurance ASAP .

 

 

Well the idea is that the car may have diminished resale value due to its having been in a wreck.

 

If you have two identical (same model, same mileage, same condition, same everything) used cars - one that's never been wrecked and one that has - the first would be able to be sold for more money....

 

That's the idea. In the case of a fender bender or minor mishap, the difference would be negligible...in the case of structural damage to the unibody, the difference might be significant...

 

Anyway that's the basic concept....the autobody guy said two cases have been tried so far and *surprise smilie* the insurance company won both...ie, no extra compensation for "diminshed value"

 

I just thought someone here might have some experience with this....

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ok , it doesn't seem right that you should be the one to take the loss though , what is the insurance for ?, doesn't the insurance company weigh the repair against the value , with structural damage and frame repair this is very high dollar so is it not a total loss then ?

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Well, it's really only a loss if you turn around and sell it at a reduced price.

If you keep the car and drive most of the value out of it, well, then, there it it. Isn't it?

 

 

 

That's true. And I am talking about how the accident reduces the market price of my auto...which I might want to sell in the near future.

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My wifes car was rear ended causing $9,000.00 worth of damage. The car was a lease and my auto dealer told me about diminished value. I had to get a person who specializes in vehicle appraisals to come to my home, examine the car ( this was after it was repaired by the body shop) and determine the

diminished value. I paid the appraiser $120.00 for his service and recieved a check for $1,500.00 from the insurance company.

Keep in mind:

- The insurance company will only accept certified appraisers. ( this cannot be done by a Mazda Dealer in your case or any other auto dealerships)

- If your car has just a few thousand miles on it, then the diminished value will be much greater. ( my vehicle had 75,000 miles on it and it was 4years old.)

- The company that did my appraisal specialized in appraising classic cars etc.

Hope this helps!:thu:

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I was able to secure a check for $500.00 as a diminished value claim against Progressive Insurance when my ex's Suburban was sideswiped.

 

There are a few states that have diminished value language in their regs and I used what I found on Google as the basis of my claim.

 

An attorney won't represent you because there isn't much money in it.

 

Basically, I was a pain in the ass and they paid me to go away...

 

:D

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My wifes car was rear ended causing $9,000.00 worth of damage. The car was a lease and my auto dealer told me about diminished value. I had to get a person who specializes in vehicle appraisals to come to my home, examine the car ( this was after it was repaired by the body shop) and determine the

diminished value. I paid the appraiser $120.00 for his service and recieved a check for $1,500.00 from the insurance company.

Keep in mind:

- The insurance company will only accept certified appraisers. ( this cannot be done by a Mazda Dealer in your case or any other auto dealerships)

- If your car has just a few thousand miles on it, then the diminished value will be much greater. ( my vehicle had 75,000 miles on it and it was 4years old.)

- The company that did my appraisal specialized in appraising classic cars etc.

Hope this helps!
:thu:

 

Extremely helpful....:thu:

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I was able to secure a check for $500.00 as a diminished value claim against Progressive Insurance when my ex's Suburban was sideswiped.


There are a few states that have diminished value language in their regs and I used what I found on Google as the basis of my claim.


An attorney won't represent you because there isn't much money in it.


Basically, I was a pain in the ass and they paid me to go away...


:D

 

Good idea - I hadn't even googled it yet....thanks for posting...

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I looked into this when my car was hit two years ago. Since it was an older, higher mileage car, there wasn't much to gain, so I let it go. But - yeah - everything that I read at that time indicated that, for a new car with low miles, a diminshed value claim can be substantial.

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I looked into this when my car was hit two years ago. Since it was an older, higher mileage car, there wasn't much to gain, so I let it go. But - yeah - everything that I read at that time indicated that, for a new car with low miles, a diminshed value claim can be substantial.

 

 

 

Mine is a '06 with under 20k on it...I'm encouraged to hear that it's not that unusual to collect....thanks everyone.

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Mine is a '06 with under 20k on it...I'm encouraged to hear that it's not that unusual to collect....thanks everyone.

 

Let us know how you do.

 

You have a real economic loss at this moment, and the fact that the loss depreciates over time is irrelevant.

 

For many people, diminished value means they're stuck in a car they no longer want for any number of reasons...

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