A few weeks ago, I was in an accident in my 2004 G35 Sedan. It was totally the other drivers fault. He even admitted as much to the policeman who came and wrote the accident report. There was damage to both of the right side doors and to the right rear fender.

I contacted his insurance company to get the ball rolling and took it in to a shop. The insurance estimator came out and took a look and said it would cost $4,600 to repair. So far so good.

Then I find out about diminished value. It's the law here in Georgia. Before I can talk to the insurance company about they cut me a check for $213. Really? Blue book is 15k for good condition (which is what I would have classified the car prior to the crash) and 13.7k for fair condition (post crash). That's a difference of $1,300; a far cry from $213. I am going to make the call tomorrow but I'm not hopeful. StateFarm might just lose my business over this.

 

Not sure I understand?

 

Diminished value is the difference in the cars value as a result of the accident. For example, if you were looking at two cars that were identical in every way possible EXCEPT one had been in a collision and had been repaired, which one would you be willing to buy? How much less would you be willing to pay for the one that had been in a collision? That amount is effectively the diminished value of the car. It's resale value is less simply because it has been in an accident.

Here in Georgia the law requires that the insurance company compensate you for the diminished value of the vehicle. In this case they say it's only $213 while Kelly Blue Book says it's closer to $1,300.

 

Your mistake was dealing with their insurance company, since you have insurance let them handle this incident....that is what you pay them for! It's not going against your driving record, cause of the accident should be in the police report. Most of us should be aware of deminished value, we have it on the left coast too....
Gary

 

Of course their insurance is going to try to pay as little as possible. Contact your insurance and have them do the work for you.

 

Reading sh;t like this just pi$$es me off. The amount of money insurance companies charge everyone a month and then you file a claim and they fu(k you in the @ss with sand. Diminished value my @ss. He wrecked your car, it should be fixed properly to how it was before their "client" hit it, not nickel and dime you. Call your insurance instead. Tell them your neck hurts now too....

Lawyers used to be the scum of the earth.. Insurance companies are rapidly taking over that #1 spot.

 

^+100000000000000000, Hope everything works out for you and your car. stupid insurance companies T_T

 

The guy how hit me and I both have State Farm. Diminished value has nothing to do with how well they fix your car. The insurance company is already obliged to make the car "whole" after the accident. Diminished value is a differnt thing alltogether.

 

Dedman, simple explanation for diminished value is what your car was worth prior to and after the accident....the difference. From experience vehicles that have been in an accident are never quite the same afterwards....especially if the body work isn't perfect! Check out AAA/Auto Club for better rates and coverage once this is settled and your G is back on the street....
Gary

 

you should get your own estimate of the DV and submit it for payment.... $1300 will never happen but i think $200 is also too low.
Sounds like you should be getting in the $400 - 600 range.

 

I talked to an indi apraiser yesterday and he walked me through the process. According to him, State Farm violated GA state law by issuing the Dim Val check BEFORE repairs were completed. It's all part of their lowball strategy. I'm going to have the car looked at by someone else after it's fixed and submit my claim then. I've already told State Farm that I'm rejecting their dim val amount, to put a stop payment on the repair/dim val check, and issue another one with just the repair payment on it.

 

Whoa before this thread i never would have considered a dim val insurance payments. shucks

 

Man, that sucks major bad.