Car Accident Insurance and Diminished Value Claim

[nobb]

I was rear ended in a not at fault accident and in the process of dealing with my insurance company. My car is less than two years old and my concern is that the vehicle will now be worth less due to an accident record against the VIN.

I inquired with my insurance company about a diminished value claim and was told that I would basically have to pursue the other party's insurance company directly via a lawyer or small claims court.

I am just wondering if anyone has experience with a diminished value claim, the process, and perhaps recommendations on where to get the vehicle assessed for diminished value? I would also be interested in how sucessful such claims are.

Thanks!

[friedn00dles]

CBC Marketplace did a story about this, you can watch it here -> http://www.cbc.ca/marketplace/episodes/2011-episodes/crash-and-burned

Try taking the same steps, go to the dealership and ask how much is the car worth before and after the accident. Get those figures and approach the at fault party's insurer.

[EF9 Sedan]

I didn't know you could do that! I'm guessing a lot of other people didn't know either. Otherwise it would be something that everybody tries to get compensated for after an accident.

[nobb]

I think in Canada it's still a grey area but some states have it as a law that it gets paid out. Surely this has been done before and someone has experience with it?

[JustinMCS]

Originally posted by nobb
I think in Canada it's still a grey area but some states have it as a law that it gets paid out. Surely this has been done before and someone has experience with it?

Yeah from my understanding in Canada they don't do diminished value, but in some states it is law....

[Tik-Tok]

I don't see how they could factually calculate that.

If your car is worth $30g pre-accident, and $28g post-accident, then that's $2,000 loss ... but who says you're selling your car right away? In 5 years the difference could only be $500. In 10 years, $50.

[Xtrema]

http://www.thestar.com/business/personal_finance/2014/01/06/how_to_get_cash_after_crash_from_atfault_driver_roseman.html

I guess you have to go after at fault party's insurance company to get this.

[Masked Bandit]

The concept has been floating around for a little bit in Canada now but it's definitely not mainstream. Because it's almost impossible to calculate an exact number you are definitely fighting an uphill battle. The actual diminished value fluctuates significantly depending on A) when you sell your car and B) if the new owner cares. I don't know that I would bother putting a lot of effort or resources into this project unless you had a rare / valuable car that something like this made a huge difference. What's your vehicle?

Is there the odd company that will cough up some PFO money just to get you to leave them alone? Maybe. Is it standard practices? Hellz no!

[nobb]

2011 Hyundai Genesis Coupe with $7k in damages. Not a special vehicle by any chance but I figure I'd put a little information together and attempt to take the other insurance company to small claims. Will likely send a demand letter beforehand to see if we can reach a settlement outside of court. The intent to sell is definitely a point to consider. I'm not sure how to approach that one...

[guessboi]

Originally posted by nobb
2011 Hyundai Genesis Coupe with $7k in damages. Not a special vehicle by any chance but I figure I'd put a little information together and attempt to take the other insurance company to small claims. Will likely send a demand letter beforehand to see if we can reach a settlement outside of court. The intent to sell is definitely a point to consider. I'm not sure how to approach that one...

Keep us updated. Good luck!

[nobb]

Anyone know of a place, or can help me get my car's post accident value appraised? I need something formal on paper to defend my claim.

I've already compiled information to get an accurate pre-accident price.

Thanks!

[BokCh0y]

i tried the diminished value claim when I had my gen2 rx330. not something they do in Canada and my insurance company - statefarm did nothing to assist me with it nor did they assist me in claiming for it.

Damage was like $17k on my RX because I got sideswiped - damage to the whole passenger side of my suv along with front and rear bumper cover replacement and new hood.

Took a hit for sure and moved on, that's all that happened for me.

In the US, they have the diminished vehicle claim policy.

Hope you're not hurt.

[thetransporter]

Originally posted by BokCh0y
i tried the diminished value claim when I had my gen2 rx330. not something they do in Canada and my insurance company - statefarm did nothing to assist me with it nor did they assist me in claiming for it.

Damage was like $17k on my RX because I got sideswiped - damage to the whole passenger side of my suv along with front and rear bumper cover replacement and new hood.

Took a hit for sure and moved on, that's all that happened for me.

In the US, they have the diminished vehicle claim policy.

Hope you're not hurt.

my friends vehicle was hit not at fault (US) - he has been fighting for diminished value - the US insurance company like state farm in Canada as you mentioed did/is not doing anything

[nobb]

I think the key is to get a proper appraisal to defend your claim from. Ideally with an "expert" appraiser/witness. But that isn't cheap. Ive been trying to contact the other person's insurance company, my own insurance, as well as the Alberta Insurance Council to get more leads on how to properly proceed with this, but keep getting dicked around and deferred to someone else because "this isnt my problem."

Bureaucracy these days...:banghead:

[thetransporter]

Could someone assist with this question on the same subject:

Person A in Calgary with US-vehicle/insurance - gets hit not at FAULT by person B

Person A also wished to resale his vehicle in Canada as the Model is not sold in Canada (the actual model)


Person A's insurance company hires a Calgary appraiser - appraiser uses estimate software that is US based/market pricing

A check is issued to Person A (didn't sign any waiver)

Local Bodyshops want far more than the check amount as they wish to bring in the parts themselves, etc -

Person A demands more money from his insurance company (in the US) and they tell their customer (Person A) that's the repair amount - and to contact the third party's insurance company

Person A contacts the third party (Person B) insurance company and asks for money - and submits claim for diminished value - (I read this forum and tell my friend Person A about diminished value) and (Person B)s insurance company tell hims off/go back to your insurance company


What would the best course of action?

[Masked Bandit]

If person B was the at-fault party here why is Person A's insurance company paying for anything? The insurance company for person B should be footing the entire bill. The diminished value will be a tough one (as discussed) but as for the cost to repair, it's not normally an issue. Something is off here.

Edit: clarity

[nobb]

For any party's (at fault or non at fault driver) insurance company to hire an appraiser for the sole purpose of estimating diminished value is surprising. Both my insurance and the at fault driver's insurance have told me they would take no part in the diminished value claim.

However, I am escalating the situation to the Insurance Superintendent of Alberta to get more clarification/awareness of the issue. I would encourage more people to call them about diminished value as it is shitty for our insurance legislation to not include that as part of standard compensation paid out to the injured party.

[triplep]

http://www.canada.com/story.html?id=f40eab26-668a-40d1-b924-61a3b32326d0


This guy did something similar, mind you he sued the valet company and his car was a little more note worthy. I mean when someone buys a Mercedes SL 65 they have money. If it was me I'd much prefer to buy a clean title vehicle such as that instead of saving 10k and buying one after a significant accident and repairs.

[thetransporter]

Originally posted by Masked Bandit
If person B was the at-fault party here why is Person A's insurance company paying for anything? The insurance company for person B should be footing the entire bill. The diminished value will be a tough one (as discussed) but as for the cost to repair, it's not normally an issue. Something is off here.

Edit: clarity

Persons B insurance paid the basic estimate to Person A's insurance company and they relinquished that to him..