OT: Insurance Question

811 Views 7 Replies 7 Participants Last post by 2001 Sapphire Blue, Sep 11, 2003

MacedoMS

Discussion Starter · Sep 9, 2003

It's been quite a while since I've been in an accident and I have a question regarding insurance and Carfax for that matter. My truck has roughly 8-10K worth of damage and most likely I won't want to keep my beloved truck once it's fixed because it just won't be the same. I have USAA and was wondering if they allow for some sort of residule devaluation after an accident of this magnatude. Obviously once it's fixed and I try to trade or sell, it will show that there has been severe damage and I won't get half of what the truck is worth. The shop repairing the damage is the same shop that preps/paints all my body kits and they are fantastic, but it just wont be the same. I'm really bummed out about this...

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SUN RA KAT

· #2 · Sep 9, 2003

There's always the chance that they can make it good as new again - check it out when it's fixed and then decide.

Even more importantly, I'm glad you're not too badly hurt.

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HP

· #3 · Sep 10, 2003

Larry, talk to Lance - he's in the business.

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Bill Pemberton

· #4 · Sep 10, 2003

Larry,

Many Insurance Companies now have provisions stating that they will not be held liable for any loss of residual value due to accident,hail damage, etc., but this has just recently started. Check with your agent , as your company may not have changed it's policy provisions and you may have some clout. I don't want to get your hopes up, but it is worth a check. In all likely hood the value of the truck will drop, but your state will not view it as salvage. Cover your behind by disclosing at the time of sale, and unlike a Viper the hit won't be anywhere near as severe. With your disclosure to the Dealer, it is now their responsibility to the next purchaser to relay the information. Most dealers will do this, as you will
receive less on trade, and they will sell it based on someone looking for a deal ( price ). Good luck and feel free to call me if I can give you any advice on how to handle the situation.

Bill P
1-800-889-1893

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Kansas

· #5 · Sep 10, 2003

As always, Bill is correct: I had my 2002 Denali get hit pretty hard about a year ago. My insurance said they would not pay a "diminished value" claim. I then went to two GMC dealers and asked them what my truck was worth with $14,000 in damages fixed vs. totally clean. One estimated it was worth $8000 less and the other $7000. Two more phone calls and I had a check for $7,500 in hand from my insurance provider. Both the idiot in the other car and I had the same insurance provider, which makes it a LOT tougher.

The bad news is that I am now upside-down (for now) on my Denali loan because of the damage (worth less than what I owe and nah, I didn't pay down my 0% note with the moola). The good news is that they did a fantastic job with the repairs (no frame damage) and all is well. Oh, and on that note: Frame damage will help you get a total if that is what you are looking for. Ask your insurance person if there is anybody that they deal with when selling salvage cars. Those people will help you try to total it with the insurance so that they can buy it and resell it once it is repaired. I was THIS close!

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Thin Man

· #6 · Sep 11, 2003

Larry,
Lance here. Diminution of Value is very difficult to establish because, while it is a phenomenon, you can only realize (and therefore irrefutably establish) the loss when you trade in or sell your vehicle.
Here in Florida... there is fairly well established precedent that in the case of third party claims (ie.. your claim against the person who caused your damages) DV is to be paid. Diminution of Value is considered therefore to fully indemnify you.... in other words return you to your prior condition. For first party claims (your claim with your insurance company) most insurance policies now EXCLUDE diminution of value.
When I was a claims manager many moons ago, we paid Diminution of Value on third party claims... but denied them on first party claims.
My suggestion would be to push for a total loss of your truck. That way your insurance company will pay you the ACV, or market value, for your area.
Actually in Y2K3SRT's example above he was probably lucky that the other party had the same insurance as him.... otherwise he most likely would not have received the diminution of value check.
You see the first party side (you against your carrier) is dictated by contract. In Florida 99% of the carriers have changed the language of their policies (the contract) to EXCLUDE Diminution of Value. Therefore you can argue until you are blue in the face and monkeys fly out of your ass... you will not get Diminution of Value.
On the other side..... in a third party claim..... the rules are governed by legal precedent and indemnification of your damages. In that arena, Diminution of Value cannot be summarily denied. You will have to follow a similar avenue of documentation as the example above..... but it has to be considered or you can get an attorney to argue that fact for you. If the company insists that the vehicle is NOT a total loss. Then I would pursue Diminution of Value agains the insurance company of the individual who caused the accident.
Again... in Florida... against your own carrier you will (with 99% certaintanty) NOT get Diminution of Value... agains the at-fault parties carrier you have a high likelihood of receiving DV if you fully document the Diminution of Value amount.
Good luck... and if there is anything I can do to help.... call me.. you have my number.
Thanks,
Lance

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Bill Pemberton

· #7 · Sep 11, 2003

Phenomenal advice from MYDRMKR !!! Go for it Larry.

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2001 Sapphire Blue

· #8 · Sep 11, 2003

Bill Pemberton said:
Larry,

Many Insurance Companies now have provisions stating that they will not be held liable for any loss of residual value due to accident,hail damage, etc., but this has just recently started. Check with your agent , as your company may not have changed it's policy provisions and you may have some clout. I don't want to get your hopes up, but it is worth a check. In all likely hood the value of the truck will drop, but your state will not view it as salvage. Cover your behind by disclosing at the time of sale, and unlike a Viper the hit won't be anywhere near as severe. With your disclosure to the Dealer, it is now their responsibility to the next purchaser to relay the information. Most dealers will do this, as you will
receive less on trade, and they will sell it based on someone looking for a deal ( price ). Good luck and feel free to call me if I can give you any advice on how to handle the situation.

Bill P
1-800-889-1893

Bill, You're really trying to get to the 75 posts needed for the give a way aren't ya? Good to see ya on here!

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