Just to pass along info the Insurance Industry doesn't want you to know....

If your involved in an auto accident (preferrably not your fault) and your car IS NOT totaled but has to have repairs, there is an Insurance Payment called Diminished Value (also called Depreciation of Value).

Essentially, this is the amount of value your car has lost due to being wrecked. The amount of money that you would lose if you immediately tried to trade the car in after it's repaired.

The catch is that insurance companies DO NOT OFFER OR MENTION this. You have to mention it and you have to "debate" with the insurance company to reach an agreement on a total. In several instances I have researched, most insurance companies try to get away with paying 20% of the total damage bill. Please remember, this is CASH you get, above the total repair bill for loss of value.

In my very recent wreck, the total repair bill (to date that is) is $9000.00 (I told you she rear-ended me hard!). Under the insurance companies desire, they would cut me a check for $1,800. Unfortunately, I'm a ***** and since I have only made 3 payments on my brand new fully loaded SE, I WANT MORE. I'm going to fight for at least $3,000 if not $4,000. From what I have gathered from others, if you stand your ground, they typically will back down. Their only other option is court and they know they typically lose there, especially when it comes to deciding value.

Just thought I would pass this info along to other Maxima owners so that you are aware. I'll let you know how mine turns out....I'm sure it will be an interesting arguement.

Here are some links for additional info:

http://www.asashop.org/autoinc/sept97/value.htm

http://www.insure.com/auto/collision/allstate799.html

 

If she rear-ended you, wouldn't her insurance pay for everything?? So you don't have to pay a cent out of your pocket? Why would they only give you $1200? Or did I mis-understand what you wrote?

 

I thought the insurance company just pays for everything and then bill you after they get everything figured out with the other party's insurance.

 

Very nice point, thanks. My insurance policy doesn't mention anything on this: Colonial Penn/GE Assurance. I work in the financial services industry and full disclosure is a must. How did you learn of this compensation for depreciation? Is it built-in standard feature (like uninsured motorist coverage) req'd by your state? CAn anyone confirm? Name your state and insurance co.

 

I think that it depends on what state you're in. In New York, we have a no-fault law, where your own insurance company pays (even if it's the other persons fault). I have Travelers Insurance. When a lady took a left turn in front of my 93 sable earlier this year, the car was totaled big time (damage to the engine). It would have cost $4000 to repair and to get the car to run, which the insurance company was willing to pay, but the car was already on it's last leg, and I hated that POS anyways ; so we opted to get a check from them for the value of the car. And here I am now w/ my 2002 SE

 

Do you know if there is a time limit to try to fight for this? Thanks for this info...I had a pretty bad wreck in my Ram about 9 months ago and did not know about this remedy.

 

I can gurantee you that will not work. I have 2 friends that tried this. They even threatend the insurance with lawyers, etc, and they would not budge. So don't expect it.

 

Not sure if there is or not. I would check into it and see for sure. Wish you luck.

 

What won't work? Not sure what you are referencing. Please explain. Thanks...

 

The main topic.

 

Her insurance is covering. The Diminished Value is above what the total bill is. It's a seperate cost that the other insurance company IS REQUIRED to pay you BY LAW (if applicable in your state). The diminished value is the loss of true value your car suffered from being wrecked. Example: My car will have different VIN numbers on the 1/3 last part of my car due to being replaced. This will lower the value along with the wreck on the title. Her insurance company will have to pay me diminished value so that I don't take a screwing when I trade in.

 

I live in Arkansas. Her insurance company was State Farm. I learned about it because I was rear-ended on the freeway last week. $9,000 in damage. Nissan told me about Diminished Value and so did the owner of the repair shop that is doing the work. He said stand your ground and fight and they will cave in before going to court. Check out the links I added in my initial report. They will give more info.

 

It may be different among insurance companies. I've spoken to several people who have gotten diminished value...It only applies if your vehicle is like 2 years old or less.

I have also mentioned this to the other parties claims adjustor and he said we will figure that out once the repairs are made but that I was entitled to Diminished Value.

Please don't get me wrong, I'm not disagreeing with you, just stating what I have been through in the last week.

 

hope you're alright. That strip between here and Conway is a death trap! is that where it happened?

we still have to hook up sometime. Oh.. if its not too late, avoid the North Point body shop.

 

does this apply in New York?? I would assume not since there are so many accidents in this state

can anyone confirm??

 

Yep, I got slammed on the way from Little Rock back to Conway. I-40 is a deathtrap to say the least!

Never to late to have lunch and meet. I'm having major Max withdrawals! Mine is getting fixed and I made the decision yesterday that I wasn't going to trade it in until January 2003 when the new one comes out.....If I like the new one, I will get it...If not, I will pick up good bargain on a 2002.

Considering I make the LR to Conway I-40 drive each day, I bet I will have another one before long.