Need Education

[Y2KHAWK]

My vette was rear ended. How do you figure the depreciation of the vehicle to settle with insurance ?

[raroZ28]

My vette was rear ended. How do you figure the depreciation of the vehicle to settle with insurance ?

You need to talk to Norm.

[fastTa]

You need to talk to Norm.

Yep, I'm sure he would be gald to help.

[Y2KHAWK]

I haven't seen him lately, but thanks guys.

[wolfdogs]

I haven't seen him lately, but thanks guys.

page em..he's here...

then we can all benefit from his answer.............

[Performin Norman]

In most states, the compensation for "diminished value" is not covered by the responsible party or the insurance companies. It has been an ongoing issue for a long time. The problem has always been, "How much should this person be compensated?" The DV of the car changes with age. In other words, if you have a 2006 model and it has DV but you keep the car for 10 years before you sell it, it is difficult to know how much of a loss you will take?

I, personally, believe there should be "some" compensation, especially for the innocent party. They just can't come up with a reasonable way to put a dollar figure on it. My office manager and I just had this conversation yesterday. Her 05 Honda was hit by a drunk driver. When asked about DV. I told her, the value of her car, NOW, depends on the buyer. Problem is, dealerships are REQUIRED to disclose if a vehicle has been involved in an accident but INDIVIDUALS are not.

It's going to be an ongoing discussion by Insurance Commisioners for a long time.

Btw, there are a lot of good articles online about DV. Do a search on "Diminished Value".

[Y2KHAWK]

Thanks Norm.. That is what I'm afraid of. The damage was not that bad but it is still a vette and how do the books show it. Just as being wrecked or the severity of the damage? I know this is going to come back and bite me if I don't persue it now..

Any more suggestions???

[FroSSty]

Heh...Diminished value.... Yet another way the auto insurance industry is burning people. I remember reading a story about this... I don't recall the exact numbers so Ill make it short and use close figures.

A man wrecked his Brand new Porshe. He argued up a storm trying to get diminished value payment. The Insurance company got fed up and finally just totalled it. They settled with him for $90,000. He then went to the salvage auction and bought it back for $65,000 and paid $10,000 to repair it. Soooo he was paid 90,000, then bought it back AND repaired it for $75,000. Does the extra $15,000 prove the Diminished Value case? YES it does. But for some reason, the Insurance companies don't want to see it this way.

[Performin Norman]

Heh...Diminished value.... Yet another way the auto insurance industry is burning people. I remember reading a story about this... I don't recall the exact numbers so Ill make it short and use close figures.

A man wrecked his Brand new Porshe. He argued up a storm trying to get diminished value payment. The Insurance company got fed up and finally just totalled it. They settled with him for $90,000. He then went to the salvage auction and bought it back for $65,000 and paid $10,000 to repair it. Soooo he was paid 90,000, then bought it back AND repaired it for $75,000. Does the extra $15,000 prove the Diminished Value case? YES it does. But for some reason, the Insurance companies don't want to see it this way.

I see your point. Now, figure out to handle it and call the insurance commisioner. It's all in the nuts and bolts.

[furyus65]

I work for an insurance commissioner

And I can tell you that the insurance commissioners cannot determine this. We do not have the regulatory authority to do so. Only a court or the legislature can determine how to figure this. I can tell you that in Oklahoma the courts have noted that you are entitled to diminished value but they do not give a formula to determine it. And in reality you really cannot reach a formula since the cause of damage depicts the diminishment in value.

Since the case law started in October of last year set the diminished value we are still early on (as a state not as a commission) in trying to figure out the best way to determine DV. The normal reply from an insurance company is to have an appraiser inspect the car before and after the repair. The cost is of course charged to the claimant and is not refundable by the at fault company (for some reason I do not know but that is how the companies are requiring it be done) So now that you are out about 300.00 on appraiser fees the car is determined to devalue by say 2000.00, the company then offers a piddly amount say 1000.00 and if you do not accept it you have to sue them.

As for the guy with the Porsche, he now has a rebuilt Porsche and while he got 15,000.00 because of how he handled the matter he does have a Porsche that will be reduced in value if he ever sells it or is hit by another driver. (according to the laws of Oklahoma) At best he'd get 80% of the acv of the car in a total loss which equates to about 70,000.00 so now he is at least 5,000.00 over value of the car in the best case scenario. In theory he still did not come out ahead or even but he does have his porsche back and he is still driving it which will hopefully make up for his financial loss.

jason

[Performin Norman]

Thanks Jason. Nice to have some inside info.

[FroSSty]

Again....those figures were "close". I am not exactly sure what he got, therefore we don't know for sure if he came out ahead. But I hear what you are saying. Thanks for the info.