I want to know how people are successful with these claims. If you did submit one after an accident, how did you file it? What supporting documentation did you provide. Which insurance company was it? Was there a time for that had to be complied with to file?

Conversely for those who were unsuccessful what were the details? Was it a matter of not being thorough enough? Deciding it was more trouble than it was worth? Are there some insurance companies that just plain won't pay?

 

you've talked to telum yeah?

 

My Experience in a Nutshell
I have USAA, the at-fault driver had AMPAC (I think that's what they were called). AMPAC put up a fight every step of the way, even throwing a tantrum when it came to rental coverage while my car was being repaired. When it came to diminished value (DV), USAA offered me $14xx, then AMPAC offered me a little more, then USAA raised their offer to $19xx. It was obvious I wasn't getting anywhere with them, so I sued the driver. I sued for $12k, was awarded $13.5k, and settled for $10k. This was in Augusta, GA (a couple hours away from Atlanta). This was for my '07 V8V, which I had just purchased for $75k with ~23k miles on it. The accident occurred in 2012.

Dealing with Insurance Companies
Insurance policies cover lawsuits against their covered drivers resulting from an accident, so by suing the at-fault driver, I forced the insurance company to take me seriously. Insurance companies will string you along for as long as possible to wear you out so you'll take a low-ball payout. Do NOT accept these low-ball offers. By taking the issue to court, the insurance companies can no longer do that, and if they act in bad faith there's often a severe financial penalty against them (which gets awarded to you).

Establishing Diminished Value
Gather as much data as you can. This is tedious and requires a lot of work, but this is what backs your claim. You'll need to talk to as many people as you can: current and former owners, buyers in the market, and dealerships. You can also look at cars that are listed for sale, and those that have sold, to see the difference in pricing between cars with and without accident histories. Be as thorough as possible in your documentation.

State Laws
State laws vary, so you'll need to see what applies to your case. Things that change by state include statute of limitations, amounts/limitations of awards, ability to claim DV, and what other financial awards can be received (see below for what to include, if eligible in your state).

What to Include in Your Lawsuit

• Loss of value (diminished value/DV) - This is the reduced value of your vehicle. The basis for reclaiming DV is that your asset is now worth less due to the accident (regardless of whether or not you sell the car), so the at-fault driver must reimburse you for your loss.
• Loss of use - This includes the amount you paid in insurance, registration, and monthly payments during time period from the accident to car being repaired and back on the road. Basically, you're paying for a car that you can't use. The at-fault driver has caused you to lose the use of the vehicle, so they must compensate you for your expenses during that time. If the vehicle is used for business, that can add to this.
• Out of pocket expenses - These include shipping the car to/from the repair shop, appraisals, rental car (if not covered), etc. Generally these are at the discretion of the judge. Legal fees are often not eligible.

Going to Court
This can vary greatly, so here's what I went through:
AMPAC brought in a lawyer from Atlanta and one of Carfax's leading experts. I had a local lawyer (who was awesome) and my data. To summarize the trial, Carfax's expert recommended a DV slightly higher than what the insurance companies were offering me (can't remember what it was exactly, but somewhere in the $2k range). He based that off a combination of Carfax's estimates and a percentage of repair costs. His explanation is that the repair cost percentage takes into account the type of car it is. However, the majority of his appraisal was based on Carfax's estimates. Carfax does not disclose their algorithms, nor will they. They're proprietary. So the defense was built on the testimony of an expert witness who provided numbers that came largely from a black box algorithm that couldn't be explained or justified to the judge.

I presented my data, and lots of it. I provided real-world figures from a variety of sources - current and former owners, buyers in the market, and dealerships - to give a very clear and realistic explanation of how much my car had lost value, and why. I also acted as a somewhat authoritative witness (not sure if I qualify as an expert witness, but if not then I'm sure close to it), so I was able to argue my points and back them up with thorough explanations.

I was awarded more than I sued for. The lawyer approached my lawyer and I after the trial and offered a settlement. This is very common. It lowers the amount you receive, but also finalizes the lawsuit so you don't have to deal with it being dragged out even longer. Their offer was acceptable to me, so I took it. Since I did literally everything except file the paperwork and address the judge and defense team in court, my lawyer took a very small payment.

 

lol took a while to type up

 

Why did you go through so much trouble gathering evidence when you could have paid $275.00 for an expert automobile diminished value appraisal?

 

I had that done as well, and included it as part of my argument.

On its own, it isn't enough. My expert appraiser said $7500. Their expert appraiser said $2xxx. Whose expert appraiser is right?

Plus it does nothing to help recover out of pocket expenses or loss of use.

 

Telum how much was the cost of the actual damages?

 

Check with your tax-preparer because I believe the cost of the diminished value appraisal is tax-deductible as professional services. Ask about your out of pocket expenses as well.

As far as whose expert appraiser is right, 99% of the independent appraisers who prepare diminished value reports either use a formula or "proprietary algorithm" OR simply offer their opinion based on their 30+ years in the business to determine the amount of diminished value. Ours uses opinions from the sales managers at six local Chevrolet dealerships based on my car and the damages that were repaired. The average of six experts is extremely compelling evidence.

Which expert report do you think will impress a magistrate or umpire?

 

At the time of the accident, the car had about 24k miles and was in perfect condition.
The repairs took 58 days and cost $18,400.


Exactly why doing the legwork to gather data is so important.

 

10-4 good buddy.

 

Mine just involved the passenger front 1/4 panel, and nothing else. $3,500 to repair. It didn't get report to carfax or the other one. It took about two weeks, and I have other cars so I didn't need a rental or anything. Not sure it's worth it.

I didn't know you had such work done to your car!

 

Yeah, it adds up quickly! If you saw this...

The top one was $18,400

The bottom one was $20,350

 

Telum, thank you for the very detailed information. My 2011 V8V was just hit in a parking lot today by an *&^%$ who apparently couldn't use the back up camera in his pickup. Haven't gotten an estimate yet but once the immediate frustration began to subside I started to wonder about diminished value. I guess I have some leg work to do. Thank you for the tips.

 

Rich

You have to absolutely stop running into other cars.

 

I'm curious if anyone who has been through a diminished value claim has used The Saint Lucie Appraisal Company? They seem to have a presence in all 50 states and their website *seems* pretty legit. But I've never been through this and I'm curious if anyone has recommendations for/against any particular independent appraisers to help in building the documentation necessary to fight the insurance company's inevitable lowball offer (formula 17c)?