worth of damage i heard the other day that since they will fix my car the value of it will no longer be 7K because of the wreck it will be about 5K that the insurance company should compensate you that 2K has anyone every heard of that??
2007-11-07 12:06:47 · 9 answers · asked by ASHLEY 1 in Cars & Transportation ➔ Insurance & Registration
This is true, technically they should compensate you for the depreciation of the value. However, good luck. I have known a few people who fought this battle before. Usually takes a lawyer and months of back and forth dealing when you might possibly get a small check in the end that you will have to give to the lawyer. Insurance companies are out to turn a profit, and they have time and money to get as much out of you as possible. Good luck.
2007-11-07 12:19:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Most states do not recognize FIRST party diminished value claims. Georgia is the only state I know of that does. (First party claims are collision and comprehensive claims -which is what a claim for hitting a deer is. If you are making a claim against someone else's policy that is called a third party claim and that is allowed).
So if you live in any state other than GA - your insurance company will not pay you first party diminished value. This issue has been well litigated and the courts have come down in favor of the insurance companies. This is because of how the policy is written. Georgia is the exception. You can call a lawyer about it but it will be a waste of your time and most likely no lawyer will take your case.
Also, If your car is only worth $7000. That tells me that it is an older vehicle. Any diminished value it suffered is minimal due to it's age. It will be no where near $2000 in diminished value. Who ever gave you that bit of wisdom - is wrong (Was it a used car salesman whose just trying to get you to trade your car once it's repaired so they can sell you another one?)
A car is deemed a total loss when the cost to repair the vehicle equal or exceeds 75% of the cars value. If you car has a value of 7000, 75% of that is $5250.
If your car were deemed a total loss.....that's a whole different conversation and I'm not going to go into that now.
2007-11-07 12:31:57 · answer #2 · answered by Boots 7 · 3⤊ 0⤋
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2016-09-25 04:33:55 · answer #3 · answered by Isabel 3 · 0⤊ 0⤋
Sort of. Once the car is "fixed", the value should be back at the value before the accident. There is a slight "loss of value" for being in an accident, called "dimunition of value". MOST auto policies EXCLUDE dimunition of value under collision and comprehensive - so you can only collect it if someone ELSE hits you and they are at fault, and they have insurance. Because it's not excluded (yet) under property damage - the third party coverage.
Now, if your car is worth $7k now, the dimunition of value might be as high as $500. But it sure won't be $2,000. So hold onto the car six months more, and it will depreciate that much anyway.
2007-11-07 12:41:27 · answer #4 · answered by Anonymous 7 · 1⤊ 0⤋
Try this... when buying your next vehicle, run a check on prior reported damages. If you fine any, tell the seller you will offer 30% less then private party sale value. See what they say. The same people that tell you Diminishment of Value exists will be the first to forget about it when selling their own vehicles.
Note: A vehicle worth $7000 is not going to suffer any reduction in value when fully repaired. It's common that these older vehicles have been repaired.
2007-11-07 12:48:23 · answer #5 · answered by Todd C 4 · 1⤊ 0⤋
A properly repaired car will still be worth the same, and may even be worth more if you take advantage of one of the many offers out there to repaint the whole vehicle for a small extra amount after an accident. I have registered many rebuilt vehicles for clients. Even if there was an actual loss of value (which I have never observed in properly rebuilt vehicles), that would be decreased every month you kept the car anyway. I actually have several clients who specialize in going to the auction, and purchasing reparable vehicles, restoring them and selling them. Some of the ones I have seen are beautiful vehicles. My wife's old car was going to be written off. We managed to keep it by settling for some used parts. After the repairs were done, she drove it for another 225,000 km (almost 142,000 miles) and 7 years before we replaced it.
2007-11-07 12:51:38 · answer #6 · answered by Fred C 7 · 0⤊ 0⤋
It's called diminished value and as of yet there is NO formula available to determine diminished value. IF the repairs are done properly by a quality repair facility you will have very little diminished value whatsoever. If the repair work is noticeable then the value drops. Find a GOOD repair facility in your area.
2007-11-07 14:52:15 · answer #7 · answered by pkgfinder 3 · 0⤊ 0⤋
Yes,the term is called diminished value.In your insurance contract it states that the insurer will return your vehicle to pre loss condition,this includes value.However you would need to attemp to sell your vehicle to prove its demished in value due to repairs.Once youve done this you can sue your insurance company for the balance of your cars value.A very dirty secret no insurance company ever wants the general public to know.More often than not they will total your vehicle for you by merely threatening this course of action.
2007-11-10 13:56:22 · answer #8 · answered by whatyardwork 1 · 0⤊ 0⤋
I frequently spend my half an hour to read this blog's posts daily along with a mug of coffee.
2016-08-26 05:56:34 · answer #9 · answered by Anonymous · 0⤊ 0⤋