Looking for advice from anyone who's been through an accident and pursued a diminished value claim. Several months ago, I was sideswiped while driving in my 997.2. My insurance company provided a rental and fixed the car. About 5500 in damage. Since the other party was at fault, I obtained an estimate from an appraisal company as well as from a local franchise dealer. The appraisal company estimated about 4500 in lost value. Dealer states they would offer 8000 less because of the accident. After some back and forth, the insurance company offered 4500. Their rationale = the insured only had 10K in property damage coverage - 5500 in repairs = 4500. So their offer matches the appraisal "loss", but falls significantly short of the trade value from the dealer should I choose to sell and buy another car.

So fellas, would you take the 4500 and settle or continue to pursue for the full 8000? I have never been to court, but am reasonably well-spoken. Finding time to do this, however, would be somewhat of a pain. Your feedback is highly appreciated!

 

Check with your insurance company to see if what you were told by the other insurance company is how this works.

You might be out of luck.

I have to say that $10K property damage is woefully inadequate. When my new Cayman S was hit (and totaled) and the insurance company that insured the other car told me the owner only had $50K coverage (note: If you drive around with just $50K coverage you do not hit and total a brand new $62.6K car!) I scolded the other insurance company for writing such low coverage limits especially considering the owner of the car, and the one who had the coverage, had a house at risk. She was not driving the car, her daughter was.

The other insurance came through though I had to write a letter to the owner of the car threatening civil action to recoup my losses if the insurance coverage wasn't sufficient. I refused to turn this over to my insurance company, too, even though the other insurance company kept pushing me to do this, which was against the law, but it never put this in writing, even though I asked.

Anyhow, after the letter, the other insurance company came up with a way to make me whole while stilly staying under its $50K limit.

You can try something similar though most insurance companies have high levels of shame tolerance.

But talk this over with your insurance agent to see what she/he advises.

 

Yeah the thing that sucks is the mid-spectrum area between small damage (not affecting the cars resale value) and sever damage being a total loss (so resale value doesn't matter anymore)

 

hi macster, if i heard you right it sounds like you had to pursue the insured for the additional amount beyond policy limits. i guess that's my dilemma here. this is not an inconsequential sum of money, but it is not large enough to have a lawyer involved. the guy that hit me lives in another state as well so i am not sure how or where to file a case either.

 

What's crazier is that in California the minimum required property damage coverage is only $5K...be safe out there guys.

 

10K in property damage. That's ridiculous

Would claim the rest of the money through my own insurance and let them get the money from the other driver or his/her insurance.

That's what underinsured insurance is for anyway

 

Correct.

Assuming, of course, OP has underinsured coverage.

 

i just saw this follow up message-- "underinsured" = "uninsured" motorist, right?

 

No, they are typically listed as two things on your policy. In Texas, most people are driving around with the minimum $25,000 property damage limit on their policies (mine is at $100,000 just trying to be responsible with all of the pricey cars in my area). If our cars get significantly damaged by one of those drivers, their company will pay a max of $25k for the repairs. It is then up to you or your company to cover the rest even if you were not at fault.

It is unclear to me if most policies cover this. In any case, you need to make sure that your uninsured and underinsured limits on your policy can cover the full replacement cost of your car or you may get short-changed. My policy rolls this together, but that is in Texas and not all states and companies have the same rules.

 

Just went and double-checked my policy on this and noticed something I had forgotten was there. Most, if not all, of my coverages are null and void if I am carrying someone for a fee. Well dang... there goes my chances to jump on the Uber bandwagon and provide a Porsche people-hauling service.

 

For purposes of whether you are being treated fairly or not regarding the diminished value of your P car. I was rear ended in 2004, at the time I owned a 2003 Lexus IS. The damage was significant and I received compensation for the repairs as well as a check for $13K in diminished value. It strikes me odd that they calculate the diminished value as low for your much more valuable vehicle.

 

Interesting thread. FWIW, I checked my policy with AAA of Southern California and it's listed as uninsured/underinsured. Phew...

 

Slightly off-topic but I am curious to know how much the value actually diminished. How much under market value did you sell/trade the Lexus for?

 

You didn't say how much the repairs themselves added up to. The extent of damage from a rear-ending can be anywhere from a scratch to a total. It seems to me that the diminished value may be one thing for a bumper cover repair running $1k and a major incident that required frame welding/straightening costing $15k would be another thing. It helps to compare apples to apples.

 

It is always a good idea to have an annual conversation with your insurance agent to make sure you are still adequately insured. I just called my guy yesterday, still awaiting a return call, to see about the insurance on my Six which is undergoing a full restoration in VA. As the work progresses, the value of the car climbs. In the event his shop explodes or burns to the ground I don't want to be left with nothing.