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Need Help on Diminished Value of Vehicle.?
I have a mazda 6 that was hit by someone else, It costs about 10,000 dollars worth of damage, the insurance company tells me it was moderate damage but I think severe due to the costs of repairs. They have only offered me 100.00 on diminished value, which i think is crazy, if i had told an average joe down the street that was interested in buying it, and it had 10k worth of damage, do you honestly think he will pay 100.00 less than the what the car was worth before it was wrecked, I DONT THINK SO, not even I would do that, that would be Stupid. I know insurance companies use the Formula C plan (WHATEVER) just another way for them Not to Pay the full amount. Ive done my research and clearly I am not getting enough. Do I have to settle for this amount or what should I do. any advice would be greatly appreciated.
ok first Oklatom is right. diminished value is a slippery term, and its also something you are not legally entitled to! yes we all agree that $100 is not enough, but your actually lucky to be getting anything. a lot of state have actually began the process to stop this type of payment at all. see if you can get a letter from a dealership as to what they would have paid you on trade in before the damage and after. then gie it to the adjuster and let him know (NICELY) that you feel you should be allowed more on this. remember, he does NOT have to pay you anything for diminshed value, so be nice and see if he will be nice in return.
You get an attorney. As soon as the insurance company hears attorney, they will make a higher offer. You just have to as aggressive as they are to prevail.
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If you don’t think you’re getting enough, turn down their offer and tell them what you think would be appropriate. But keep in mind ‘diminished value’ is another of those slippery terms that is not well defined.
Simple example, I hit you and dent your truck lid. Yours is an 8 year old car. But I’m at fault. So what does my insurance do? Well, it pays to restore you to pre-accident condition. If you get a brand new part, you’re actually better off now because an 8 year old component has been replaced with brand new. Your stone chips and dents are gone, so where is diminished value? Why is your car now worth less that it was before I hit it? Apply that same concept to anything else replaced or repaired, even $10,000 worth, and the same concept applies.
How do you prove diminished value? Generally you don’t. If you’ve "done my research and clearly I’m not getting enough" then reject the offer, and show why you should get more.
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10,000 is major damage…I’d consult a lawyer that deals in these type of cases or call your own insurance company for advice—you may have to get them involved. Also, try contacting your state’s Insurance Commissioner’s office for what guidelines, if any. there are. It’s a tricky area to deal with as well as getting the car repaired to it’s pre-loss condition. You might call some car dealers in your area and ask them what they would discount a trade-in if it had that much damage. Don’t settle for anything less than what’s fair to you.
References :
http://search.yahoo.com/search?search=diminished+value+laws&ei=UTF-8&fr=ks-ans&ico-yahoo-search-value=http%3A%2F%2Frds.yahoo.com%2F_ylt%3DAnsyoktUB_mFTWA7Om3LohYazKIX%3B_ylv%3D0%2FSIG%3D11ilrrs7c%2FEXP%3D1206713371%2F*-http%253A%2F%2Fsearch.yahoo.com%2Fsearch&ico-wikipedia-search-value=http%3A%2F%2Frds.yahoo.com%2F_ylt%3DAjRZrVfbLDRplEPnKEiIYxAazKIX%3B_ylv%3D0%2FSIG%3D121mk62jc%2FEXP%3D1206713371%2F*-http%253A%2F%2Fen.wikipedia.org%2Fwiki%2FSpecial%253aSearch&p=diminished+value+laws
ok first Oklatom is right. diminished value is a slippery term, and its also something you are not legally entitled to! yes we all agree that $100 is not enough, but your actually lucky to be getting anything. a lot of state have actually began the process to stop this type of payment at all. see if you can get a letter from a dealership as to what they would have paid you on trade in before the damage and after. then gie it to the adjuster and let him know (NICELY) that you feel you should be allowed more on this. remember, he does NOT have to pay you anything for diminshed value, so be nice and see if he will be nice in return.
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agent
No you do not have to settle for the amount offered. Since you have "done your research" you should be able to prove that you are entitled to more. You have the burden of proof here. Was the repair work really sub-standard?
Just curious, if at some point you do sell your vehicle, are you really going to reduce the market value by the DV amount? Doubt it. So in actuality, you will be ahead instead of being made whole by the insurance company.
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Claims – 21 years.
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