Best kept secret in the car insurance industry - Diminished value insurance

[urban.one]

Sounds like Georgia has made this law in the States and that there is a push in other states and Canada to implement this as law rather than individuals having to sue their insurance companies on their own.

http://www.cbc.ca/marketplace/blog/2...-accident.html

This week, Marketplace investigates what some call the best kept secret in the car insurance industry: why insurance companies prevent people from claiming diminished value insurance on vehicles that have been in a significant collision. So if you've been in a car accident, here's what you can do:

1. Ask your body shop to appraise the amount of re-sale value your vehicle has lost

2. Ask your insurance company to compensate you for the diminished value your vehicle has incurred.

3. File a claim in small claims court if your insurance company refuses to compensate you for diminished value.

4. Press your insurance company to write off the damage rather than repair it if the diminished value is high or you were planning to trade your car in soon.

5. Call or write to the Insurance Bureau of Canada and the insurance regulator in your province if you think that diminished value should be covered.


For more, check out Marketplace's report, "Crash and Burned" this Friday at 8 p.m. on CBC-TV. Click here to watch a preview with co-host Tom Harrington.

[jazzyb]

I wonder if you could do this for an accident that happened 3 years ago?

[colsankey]

I was at my state farm agents office on Wednesday and she actually recommended I get a similair style of coverage, which had a moderate rider) $50/term for 2 years and would be reduced after 2 years until 5 years.

[JRSC00LUDE]

One of my buddies on here has taken this approach with his insurance and gotten results.

It is a valid concern imo, I don't want to pay full market value for a used vehicle that had $14,000 of front end damage (for example) from a hit/run collision say....three weeks after it was bought off the lot. And, it's not fair for the owner to suffer that penalty either.

(yes, that's what happened to the last new car I bought....fuck that pissed me off)

[corsvette]

My cousin bought a brand new Dodge Ram 3/4 ton diesel megacab that got t-boned when it was 3 months old. The damage bill was just a shade under $30,000 to get fixed. I told him this would show up on a Carfax/Carproof when he goes to sell it (he still argues it wont) It's going to have a major inpact on resale even if he trys to dump it on a dealer...they run carproofs on all their used purchaces and trade ins now. The insurance companys should be held accountable for sure.

[syeve]

Originally posted by corsvette
...shade under $30,000 to get fixed...

Ugh - That is terrible. My S4 was in a hit-and-run, I am defn going to check this out.

[Xtrema]

Yeah my last accident (not at fault), neither insurance will pay out the diminished value since they spent $6K to fix the front end and $2K+ on rentals.

Car is already sold, so I'm not going to worry about it but will definitely keep this in mind.

[BokCh0y]

Was side swiped about 3 weeks ago, 15k damage to my SUV.

Looks like I'll be playing this card ASAP.

So what's the procedure on this?

[DENZILDON]

Originally posted by BokCh0y
Was side swiped about 3 weeks ago, 15k damage to my SUV.

Looks like I'll be playing this card ASAP.

So what's the procedure on this?

This week, Marketplace investigates what some call the best kept secret in the car insurance industry: why insurance companies prevent people from claiming diminished value insurance on vehicles that have been in a significant collision. So if you've been in a car accident, here's what you can do:

1. Ask your body shop to appraise the amount of re-sale value your vehicle has lost

2. Ask your insurance company to compensate you for the diminished value your vehicle has incurred.

3. File a claim in small claims court if your insurance company refuses to compensate you for diminished value.

4. Press your insurance company to write off the damage rather than repair it if the diminished value is high or you were planning to trade your car in soon.

5. Call or write to the Insurance Bureau of Canada and the insurance regulator in your province if you think that diminished value should be covered.


For more, check out Marketplace's report, "Crash and Burned" this Friday at 8 p.m. on CBC-TV. Click here to watch a preview with co-host Tom Harrington.

[Seth1968]

Saw that preview last week. Can't wait to see the episode.

My 2003 Civic Coupe was only two weeks old when a senior backed into it:

I was at a Safeway and had parked about a dozen empty spaces away from everyone else. I was in there for about 15 minutes and came out to see a pickup truck had crushed the front end. Over $4000 damage to my brand new car. The fucking guy had parked 2 stalls in front of me, yet somehow reversed through the driving lane and another parking stall to smash into my car.

His insurance company paid for everything of course, but what about the loss of value to my car?

My only solace is that he didn't kill anyone and will never drive again.

[hampstor]

By taking your own insurance company to small claims, I wonder what the insurance company would (or could) do to your rates. Could they even raise your rates or cancel coverage?

Originally posted by BokCh0y
Was side swiped about 3 weeks ago, 15k damage to my SUV.

Looks like I'll be playing this card ASAP.

So what's the procedure on this?

Procedure is in the original post and the link in the original post.

[BokCh0y]

okok reading>me

[spikerS]

Originally posted by hampstor
By taking your own insurance company to small claims, I wonder what the insurance company would (or could) do to your rates. Could they even raise your rates or cancel coverage?

Yeah, by taking your company to court, kinda ruins any relationship you have with them.

[tom_9109]

The 'diminished value' case will never win against your own insurance company. You may also hear it referred to as "accelerated depreciation".

The contact between you and them states:

"The Insurer agrees to indemnify the Insured against direct and accidental loss of or damage to the automobile, including its equipment."

A reduced resale value as a result of the damages is not DIRECT loss or damage.

____________________________________________

If you are suing someone else (and in turn their insurance company) it is *possible* however the burden of proof would be yours. You'd have to prove the collision caused your reduced value.

Their lawyer would argue that if the vehicle is repaired to industry standards and returned to its press loss condition that in fact there is no diminished value. Or they could even argue that the perceived reduce value is caused differently.

I'll definitely watch this but don't get your hopes to high people.

____________________________________________

And on another note, this has been tried many times and beat by many insurance companies.

[Seth1968]

Originally posted by tom_9109
If you are suing someone else (and in turn their insurance company) it is *possible* however the burden of proof would be yours. You'd have to prove the collision caused your reduced value.

Their lawyer would argue that if the vehicle is repaired to industry standards and returned to its press loss condition that in fact there is no diminished value.

^This.

You'll lose the legal case despite everyone knowing that you've lost significant resale value.

[tom_9109]

I have this recording tonight and I'll most likely tear it apart piece by piece in a post after.

I do not believe a car is worth less because of an accident. POOR REPAIRS lower a value. If the car is fixed correctly it shouldn't be an issue. If it's not fixed correctly, sue the shop.

[Seth1968]

Originally posted by tom_9109
I have this recording tonight and I'll most likely tear it apart piece by piece in a post after.

I do not believe a car is worth less because of an accident. POOR REPAIRS lower a value. If the car is fixed correctly it shouldn't be an issue. If it's not fixed correctly, sue the shop.

True, but perception is reality. That is, when a potential buyer finds out the vehicle was in a major collision, they'll most likely offer much less or walk away.

[89s1]

Even the best body shop has to use some filler.

[Mibz]

Someone will have to link because I'm foggy on the details, but if you guys remember the SL65 that got crashed by a valet recently, the guy got something like $3,000 for diminished value. A ridiculously low amount, for sure, but it's something.

[Xtrema]

Originally posted by tom_9109

I do not believe a car is worth less because of an accident. POOR REPAIRS lower a value. If the car is fixed correctly it shouldn't be an issue. If it's not fixed correctly, sue the shop.

Tell me which bodyshop in town can match oem paint with the same finish, gloss and age.

My insurance's approved shop did a pretty good job but it would only take about 5s comparing to know the panel isn't original.