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so my friend's bentley was backed into a couple of day ago. i'm not sure how bad the damage is, but he estimates at least $40k to repair, plus two months in the shop.

insurance will cover it, but my friend's concern is that after it is fixed, it will be worth significantly less than what it was worth before the accident. i'm thinking the solution might be to just have the insurer buy the car at pre-accident value, and then my friend can go out and buy another bentley.

has anyone here faced this situation before? i'm asking over here because i think the same issue applies to anyone with a really high end car.

thanks in advance. PM is fine if you'd rather not discuss it on the board.

 

What you are referring to is called "Dimunition of Value". It is a dirty problem in the insurance industry.
It is logical to think that you should be covered in the event the actions of another reduce the value of the vehicle that was damaged. However, courts have not been too friendly to the concept.
I have been successful in getting an insurance company to pay by filing a diminished value lawsuit against the driver of the car that hit me.
But if you try to get the money by negotiating with the insurance company, it will not be easy. Some will cough it up if you are very persistent.
Best bet is to buy coverage for your vehicle that covers you in the event this happens. Almost every company offers it and it is inexpensive.

 

Follow this link:

http://www.insurancejournal.com/maga...ures/63064.htm

Not good news for your friend.

 

My understanding is that every state is different on this issue and that CA is more favorable to your issue...

 

Tricky one. You have not really lost anything until you sell the car so how do you put a value on it? Thinking out loud, will let the lawyers chime in though for professional opinions.

 

You are correct. There is no loss until the car is sold.
However, with today's insurance company backed Carfax capability (dontcha love irony), anyone can access claim and repair info on any car. My guess is a Bentley GT with $40k in repairs would bring $25k less at resale than an undamaged one. maybe less. Wait till you sell it to quantify the loss and you will have an ugly surprise and may well be beyond the statute of limitations for a claim.
That's a real loss and it is not insignificant.

 

I hear ya, it would royally suck. at 40k in repairs I would not want it back.

 

$40k isnt a small job....even if it's a Bent

 

good info guys. i will dig around some more.

 

The insurance company will find many reasons to dodge the "diminished value" claim as resale is not just influenced by the car's condition . They will claim "we fixed it properly" and in fact if the car was leased ( and repaired at a manufacturer recommended shop) I have not heard of any manufacturer requesting reimbursement upon lease return . One would think that the mass produced high end BMW's and Mercedes returned on the many lease programs offered would spark a motivated manufacturer multiple car reimbusement claims . .

I buy my Porsches and if your friend buys his Bentley his resale will reply on his negotiation skills upon a trade in or private sale, the supply/demand of the car, specifics of that car (which include every item from the service history right down to the color and options) , overall market and economy . The "25K" figure may or may not be accurate but the insurance company has so many avenues of deflection that I's be hard pressed to say anything other than he's on his own.

Litigation --the cost, the stress . It's up to him . If the manufacturer even passes ... it may not be his best route .