jrmckinley

For those who may be interested, I just settled my diminished value claim with the auto insurance company (of the driver who caused the accident) and got 80% of what my diminished value consultant recommended. In May I was rear-ended while stopped at a light and incurred over $17k in damage to my 2010 460L (which I had just bought 3 months earlier).

I strongly recommend anyone who is in an accident (that isn't your fault) that causes substantial damage to your car to look into hiring a diminished value consultant. Mine was a family friend who wouldn't charge me, but I think his going rate is about $300 regardless of the outcome/settlement. In addition to his report, I had to send the insurance company a CARFAX report (to document any prior accidents or damage to the car before I owned it), proof that I owned the car outright (title), and 12 months of service history (I went on the drivers site and provided them 14 pages worth of service history since the car was manufactured). I had to do some haggling back and forth (they started at about 55% of his recommendation) but I think the documentation I provided was overwhelmingly clear that this was a meticulously maintained car with no prior accidents and I told them how I searched for 15 months to find a car of this caliber.

I never knew "diminished value" existed, so wanted to inform the rest of you guys here (obviously, I hope none of you are in an accident and have to go through it). When I go to sell the car, I will be honest and transparent about the accident and there's no doubt my selling price will suffer from it, so it's only fair to seek the damages from the person who caused the wreck.

sktn77a

iTrader: (2)

I knew it existed, but this is the first time I've ever heard of an insurance company paying it. Great news!

jrmckinley

As with everything, it likely varies and depends on the situation. My car was close to being totaled, I own it outright, had just purchased it 10-12 weeks earlier, flawless CARFAX, and flawless maintenance history since it was manufactured. The consultant I stumbled on has 10+ years experience in the field so his report was insanely detailed and carried some weight and I have a highly respected attorney handling my case. It's the right thing to do for victims who did no wrong and suffered substantial damage - there's no question it impacts the value of the car. It's a shame you have to fight so hard for these types of things.

comotiger

Thanks, McKinley. Very helpful info. And it’s great to know things worked out to your benefit. I am trying to understand what this process did for you exactly.

So, the other driver’s insurance company paid the 17k to get your car repaired to your satisfaction.

You then filed the diminished value claim with their insurance company with these documents. Are you saying they gave you 80% of the difference between the estimated retail value of your car if it had been accident-free and the current value of the car? Can you share the exact or ball park numbers?

Hopefully, you love this car very much and it will have no recurring problems, and you will never sell it! Good luck!

satiger

iTrader: (1)

This is very helpful info, thx jm.

sktn77a

iTrader: (2)

Did his insurance cover you consultant and attorney's fees?

jrmckinley

1) Correct- the driver's insurance paid the $17k to get my car repaired at a shop of my choice. The shop did an absolutely fantastic job on the car. I got the car back in mid-July and I'm very pleased.

2) Correct- my diminished value consultant provided a report that showed what the car should sell for in both retail and private party with no accidents (I bought a car that had no accidents so those values are relevant). Also in his report, he included specific items from the repair shop bill (I sent him the entire body shop bill showing every line item of what they did) that helped him quantify how much value I lost in the car due to the severity of the accident and the repairs that were done. So he calculated a figure of "diminished value" and after some negotiating with insurance, my attorney got it to 80% of what the consultant suggested.

Not comfortable sharing the exact numbers because my case is still "open". Just wanted to educate others as to how I navigated the process to what feels like a fair/correct outcome in the hopes of helping anyone else that may be in the same situation.

jrmckinley

No. But the consultant is a family friend and wouldn't charge me (would've only been $300). My attorney handled this at no charge and did not take a percentage of the settlement.

sktn77a

iTrader: (2)

WOW! My attorney wouldn't spit in my mouth if my teeth were on fire unless I paid him first!

wasjr

I can understand not being comfortable with specific numbers, but can you tell us the percentage reduction in value your consultant determined was due to the accident (i.e., the accident caused the value of the vehicle to be reduced 15%)?

jrmckinley

Sure. The consultant's recommendation was approx 30% of current retail value of my exact car in my region. I ended up with 80% of that, or approx 24% of the current retail value in my region.

wasjr

Thanks for the info. This gives a great indication of the financial effect an accident can have on an otherwise pristine vehicle, and confirms that a diminished value claim is worth pursuing.

joedaddy1

iTrader: (1)

what's the number? are we talking typical $3k?

LS430FL

Jrmckinley, glad the diminished value deal worked out for you. I sure was happy when I got my settlement on my LS430. I along with my lawyer had to go on and print out cars.com and auto trader ads and send it to them showing the sales price and carafe for each car. I will also say you got your case done very quickly! Mine took just over a year from start to finish. They came back with a low ball offer and so I filed suit against them. They then raised their offer. And this was on an 06 LS430 that was already 7 years old. The lawyer thought I would have a tough time getting anything but they paid for the damage and then another 3K for diminished value. My lawyer wasn't as reasonable as your $300 lawyer. Sounds like a great deal.

R Z

Hope I never have to experience this, but I do have 3 children( 2 sons and one daughter in law), all of whom are Personal Injury Attorneys. They do this kinda of stuff all the time.