I recently was hit and my car might have frame damage. I posted a different question before but in doing research I ran into something called "diminished value". Can someone explain this? Is this a CA insurance law?
2007-11-15 15:24:22 · 8 answers · asked by Neil 1 in Cars & Transportation ➔ Insurance & Registration
If your car is properly repaired, there is no diminished value. As a matter of fact, if you take advantage of the full paint offers many shops have, it could be worth more..
Take it from me, I have registered and insured many rebuilt vehicles for clients, and there is no diminished value.
2007-11-15 17:22:26 · answer #1 · answered by Fred C 7 · 0⤊ 3⤋
Agree with Fred C. There will be NO diminished value IF the repairs are done properly. In fact if they are done properly the normal consumer would NOT be able to tell at all that the vehicle was ever repaired. ONLY someone with collision repair experience could tell that a vehicle has been repaired. I inspect lots of vehicles and I can always see where the repairs are even when it's done by a quality shop. But this is what I DO everyday. Also there is NO formula available anywhere to determine possible diminished value.
Also. Carfax is ONLY as good as the information provided to the DMV which is where they get their info. If a person never reported a collision (no matter how much damage) Carfax would come back "clean" even though there could have been substantial repair work done. Buyer beware.
2007-11-16 04:35:50 · answer #2 · answered by pkgfinder 3 · 1⤊ 1⤋
It depends on lots of information that you did not provide.
If you are making a first party claim (collision of comprehensive) then you will not be able to make a claim for diminished value. The insurance policy language does not allow it.
If you are making a liability claim against someone else's policy - you may be able to make a diminished value claim. However, it depends on a whole bunch of stuff.
1. What is the year, make, model of your car? Usually cars over 3 years old will not suffer diminished value
2. What was the damage? Frame damage does not mean a car's value has gone down. A good frame man can pull a frame with in 3 mm of manufacture specifications.
3. How were the repairs done?
In most cases their is no diminished value.
**not legal advice - just my personal opinion**
2007-11-16 01:11:42 · answer #3 · answered by Boots 7 · 1⤊ 0⤋
I agree with Mbrcatz, in a Honda accord your diminished value isn't going to be the same as a Porsche turbo.
The buyers for these two cars are completely different, and while one (the Honda) may not even run a car fax, the other (Porsche owner) will run a blood test on the car.
A Porsche owner will not demand, but expect a discount of at least $10000 on a $90000 car. I have had 6 or 7 in my lifetime, and knowing my buddies, they would do the same thing.
2015-02-20 05:32:26 · answer #4 · answered by Jerry Garrett 1 · 0⤊ 0⤋
It's not a CA law. Diminished value is the difference between how much you could have sold your car for, before the accident, and how much you can sell your repaired car for, after the accident.
Typically, if your car is worth $10,000, and you're in an accident it have it repaired, it might only be worth $9,700 now, you've got $300 in diminished value.
The more expensive your car is, the greater the dimunition in value after it's repaired. If you have a $75,000 car, dimunition in value can be as much as 10% of the damages. (so, you have $10,000 in repairs, dimunition of value would be about $1,000). If you have a $10,000 car, it's likely 3% to 5% ($2,000 of damages, dimunition would be about $75 to $100).
If the accident was someone else's fault, definately ask the adjuster for the dimunition of value. If it's your fault, well, most policies exclude dimunition of value coverage under collision.
2007-11-16 01:55:41 · answer #5 · answered by Anonymous 7 · 1⤊ 0⤋
If you were to sell your vehicle after it was repaired the buyer will pay less because it is "damaged goods", even if your collision was repaired and you showed them all was repaired in accordance with factory specifications.
You will need to speak with you insurance company and get this taken care off.
2007-11-16 01:30:19 · answer #6 · answered by Anonymous · 2⤊ 0⤋
Sorry Fred is wrong. Any accident thatbis reported will also be available to Carfax and that will be the reason there is "dimished value"
2014-07-01 09:48:21 · answer #7 · answered by Barbara K 1 · 0⤊ 0⤋
No its not insurance law cite where you found this to further help you
2007-11-15 15:37:49 · answer #8 · answered by henrysol 4 · 1⤊ 0⤋