Our car was hit on the rear bumper by a driver who admitted his fault and his insurance company is ready to pay for repair/replacement.
We have also filed a claim with our insurance company but we prefer to deal with his insurance company and have sent them estimate we got and they are reviewing our estimate before they will send payment.
But how can we get a compensation of diminished value after accident?
they said we have to give some proof,
do we have to pay a company to get this proof?
Please explain in details.
Every time insurance company paying for claim, report it to vehicle history? and can this reporting be a factor to diminish the value of car?
Answer by timothy p
Two different articles about diminished value of vehicles. Two different ideas of what constitutes diminished value. If you had a minor fender bender, then you really don't have to worry about it. If you had a major accident and your car was severely damaged then you may have issues. Either way, expect a fight to get anything from the insurance companies.
http://www.theautoappraiser.com/Diminished%20Value.htm
http://expertpages.com/news/impact_value.htm
Answer by mbrcatz
Dimunition of value, is a weird concept. You can't collect it from your insurance company, only the other one.
If your damage is only to the bumper, and the bumper gets replaced, there really isn't any dimunition of value here.
Generally, dimunition of value, is about 4% of the cost of repair. Yes, you will have to pay someone - like a dealer - for an honest dimunition of value report. Likely, the report is going to cost you about $ 150. You're probably looking at, what, at best, $ 40 - $ 50 of value dimunition, assuming no damage to anything except the bumper.
This is going to cost you more than you'll get paid.
Answer by ♥ Uwish ♥
Diminished value works like this.
Say before the accident you were going to sell your car for $ 10,000. Well now you had the accident, and had the car repaired. But the purchaser doesn't want to give you $ 10K because they think the value has gone down to around $ 7K. So therefore, if you were to sell the vehicle, you would be out 3 grand.
But if you have no intention on selling the vehicle, you really aren't out any money.
Answer by jem
You should forget about collecting on diminished value unless you have a specialty car. A good rule of thumb is that if you see another car like yours on the highway more than once a week you do not have a specialty car. I have a Ferrari and if it was in an accident that required any paintwork or repair of frame components, I would file for diminished value and probably be able to prove my claim. Most people that buy these cars are very picky and any history of an accident will make more than 75 percent of prospective buyers just walk away. The value could be impacted as much as 25 percent just for a fender bender.I would have to hire an expert and get a report and submit it to the insurance company. Then I would have to fight to get the damages but they would have to pay if I pursued it.
If you have a Buick for instance diminished value would be negligible as long as the repair was completed properly. It would cost you to get an expert to provide any documentation and you would have to be prepared to go to court. The cost of doing this in time and money would probably not be worth it and in the end you might not collect anything anyway.
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