drocktor

Dear Friends

We were recently involved in a no-fault accident involving front passenger side. Our car is in the body-shop in the process of starting repairs.

Here are some details

2015 GL350
10k miles
current market value around 65k for similar vehicles
we live in New Mexico state

The cost of repairs is around 25k so far.

Any information regarding DV claim or what we can expect. Our insurance is Geico and the other party's insurance is State Farm.

Any and all help will be very appreciated.

Thanks!

DIMINISHEDVALUE

Hi. You have provided great information which gives me the ability to answer your queries.

Assuming there is structural damage, your car will lose appx. 30%-40% of its trade-in value because of the bad Carfax or Autocheck.

YOU can assume that State Farm will offer you $500.00.

You'll need two things: a comprehensive diminished value appraisal that doesn't rely on a formula or an simply an appraiser's expert opinion and perseverance.

Good luck!

AMG 17GT

Are you talking about the State Farm rule 17-C formula??

Besides GA where else has formula been found invalid?

DIMINISHEDVALUE

Almost every appraiser in the business of preparing automobile diminished value reports uses some type of formula. Rule 17-C is just one of them. A few of them use terms like "proprietary algorithm" while yet others simply provide a DV figure based on their years of experience. Our clients sometimes send the reports from other appraisal companies that were rejected by insurance companies. They are either two-pages of useless information or twenty-six pages of useless information. Formulas can in no way accurately represent what your car will experience, loss of value-wise, in the real world. You know who the real experts are. It is the managers at new car dealerships who buy, sell and auction off motor vehicles, including bad Carfax cars, every day. If your appraiser doesn't consult with those guys, you are probably going to receive a report based on some type of formula.

As far as what's valid or invalid, ultimately it is up to a magistrate or umpire to decide. If State Farm receives a less than comprehensive diminished value report from you, they will recognize it for what it is and treat you accordingly. You want their lawyers to look at your appraiser's report and tell the adjuster if he takes us to court, we will lose. It's an uphill battle but you can be compensated for the actual amount your car has lost in value - or close to it - without litigating.

AMG 17GT

Good thoughts all of it. Having litigated against insurance companies you are correct in that they will only pay when they are in a compromised position. State Farm is one of the worst.


Are you st. Lucie appraisal co?

DIMINISHEDVALUE

Not sure if saying our company name in a discussion could be considered spam or against forum rules. Different mods have different ideas about that stuff.

Bocahoo

A big plus 1 on that... particularly the perseverance.

I was rear-ended by a drunk driver about 6 years ago. The damage wasn't terrible -- a couple of thousand -- and the repairs were handled without issue by the other drivers' insurance (Geico). 2 years after the accident when I went to trade in the car, the dealer deducted $2,500 (I think) for a "bad carfax". I had never even heard of something like that happening. I quickly got a diminished value appraisal (while I still had the car), filed a diminished value claim with Geico, and then proceeded to beat my head against a wall for the next 6 months with Geico. I'm a bit embarrassed to say that their delay, delay, delay, technique finally wore me down and I realized I wasn't going to get paid without taking them to court which wasn't worth my time. So I eventually gave up and never saw a penny for my VERY REAL diminished value as a result of the accident. I was able to substantially negotiate down the "bad carfax" penalty when I did trade it in. But it left a pretty bad taste in my mouth and if I'm ever in an accident again, I will fight very hard from the get go for a diminished value payment.

Good luck. I've heard of people prevailing, but it's not easy.

Dog hauler

State Farm is, indeed, one of the worst...Like a good neighbor? More like the neighbor from hell, although no worse than the Good Hands People with their hands around your throat.

Anyway, whether Geico will pay its insured (you) for diminished value is a matter of what the policy says. Read it. I bet there is a provision for diminished value.

As for State Farm paying you for diminished value...don't really know on that one but chances are good a crappy company like that won't pay or won't pay what it's really worth. If your own company will pay the diminished value, get it from them and let them chase after the at fault driver (i.e., State Farm) for reimbursement.

AMG 17GT

There are only a few states that allow 1rst party DV claims. Ga and a couple other

Mike450

I thought no fault was only for injury claims and any damage claim had to be handled on a fault basis?

Good luck either way, as with such a low mileage car and such a substantial repair, you are certainly going to see a diminished value. Don't give up. Fight for it.

Dog hauler

While I don't know for sure, I doubt states would prohibit payment of diminished value by a company to its own insured. That wouldn't make sense. Why would the state want to limit payment to an insured? If anything, the state might mandate payment of DV to protect the insured.

No fault insurance has nothing to do with it. Unless you have a beater that isn't worth much, you have comprehensive and collision coverage on your policy that pays you if your car is damaged in a collision or in many other ways, regardless of your own fault.

If you're in an accident, it's usually best to just collect for damage to your own car from your own company and then let your company chase the at fault driver and/or his insurance company. Your company will, presumably, pay you promptly whereas the other driver's company usually won't.

No fault insurance usually only applies to personal injury situations and then only in those few states (are there any left?) that have it.

cadetdrivr

MN resident checking in as there are still 12 states with no fault laws.

Up here essentially everybody insures their own car regardless of fault in an accident. Our state has one quirk, however, that if both insurance companies agree that one party was 100% at fault then that party's insurance covers all expenses including the deductible of the "victim."

Axxlrod

This is another reason I lease. If my car is damaged by someone else, it's not my problem.