Car Value Loss

[4fishlips]

I need help please, I had a accident the other day I was stopped at a red light and I was hit by a 18 wheeler their wasn't much damage some where between 3 or 4 thousand. I have looked up how to calculate value loss. From what I can tell there are 2 different formulas but I don't know which one to us. I need help on what formal to use or do you have a different way to figure the lost value.

[DixieChicken]

I need help please, I had a accident the other day I was stopped at a red light and I was hit by a 18 wheeler their wasn't much damage some where between 3 or 4 thousand. I have looked up how to calculate value loss. From what I can tell there are 2 different formulas but I don't know which one to us. I need help on what formal to use or do you have a different way to figure the lost value.

What you are talking about is "diminished value". Haven't looked at any formulas, but your insurance company, or theirs (in this case) will be responsible for it.

Let's say your vehicle is worth $30,000. Now you're looking at the $4000 crash repair. So when you go to sell it, or trade it, it'll be worth less than if it were never wrecked. They have to pay you for that. Most likely they'll just send you a check, and it'll say diminished value on it. Not really sure you'll be able to negotiate how much that is either.

Now of course you were hit by a big truck. They carry a LOT of insurance (I know I did when I owned my towing business). The thing is, you have up to 3 years to claim a medical claim against a crash here in Georgia (and most everywhere I think). The insurance companies will pay you for your damages, and for the diminished value. Many will also (if they think they need to, to keep you happy) pay a bit extra just to get you to sign a release. Best way to get that little extra is being VERY NICE when you are talking to the adjuster(s). Get mean with one and they'll cut you to the bone. Be sappy drooling nice and you can get $500~$1500 extra. Just make sure that you don't go cashing the checks when they come until you are CLEAR that there isn't any fine print on them that says you are releasing them from any medical claims. Basically, it's a release of liability form. (Lot's of times it's very small print on the back for instance.)

Make it clear that you either ARE, or you ARE NOT going to see a doctor relating to anything in the accident. Back on Christmas Eve a girl in a 2004 Nissan drove into the side of my son's Dodge 2500 (Cummins 6.7) crew cab at an intersection. It was literally a slow speed crash where he was going through an intersection in stop and go traffic and she was trying to inch out in traffic and literally drove under the right side of the truck because she was looking behind him trying to get her nose in traffic.

That accident was $4100 and there was hardly ANY body damage. Caught the bottom of the rear door, a little bit of the back of the cab, and the front of the bottom side of the bed. That and the right rear wheel. (Fancy aftermarket wheels that had to be ordered.)

Right off the bat I filed a claim with State Farm. His fiancé and her 4 month old were in the truck. Next day they went and bought a new car seat for the baby. They say these days that ANY accident and you replace the car seat. This accident he wasn't going 5 MPH, but rather than argue the point, State Farm paid $285 for a car seat and never questioned it.

We didn't get any diminished value on his truck, because it has just hit 10 years old, although it's still worth a good $25,000. That and it has 148,000 miles, although that's only 14,800 per year.

How they figure it is what I think (if I remember correctly) called formula 17c. It was a result of a law suit here in Georgia some years back involving State Farm. Since then it's become a widely used formula by the insurance companies nation wide!

Basically they use NADA to find the value of your vehicle, which at least starts out fair. Then they multiply the value of the vehicle by .10 for a damage cap. Then they use a damage multiplier based on what kind of damage the vehicle sustained. They don't care if it's major structural, because that's parts that were bought and paid for in the repair. They basically only care if it's a panel that's could be repaired and/or replaced AND SEEN. If it's minor panel damage for instance, it's a 0.00 multiplier. If it's moderate damage to structure and panels it's .50.

They also take into account the mileage as a damage multiplier which is double dipping. If you have a vehicle with over 100,000 miles that's a 0.00 multiplier! So say you have that $30,000 vehicle, with $4000 damage. The damage amount doesn't matter. They'll take 30,000 x .10 for $3000. Then if it's minor damage to structure and panels it's only a .10 multiplier, so now you're down to $300. Or say there were NO replaced panels or structural damage, only repaired panels..... then you get 0.00 damage multiplier. So that means you get nothing. But say you did have that minor damage it'd be $300. But now say you have 110,000 miles and it's 0.00 multiplier and you get NOTHING, ZIP, NADA again.

All of this means nothing however when you go to sell/trade the vehicle being as you'll take a LOT bigger hit than the 'diminished value' check ever was.


As for how/when diminished value comes into play.

Some basic rules would be stuff like.

Your vehicle is worth less than $7000
You've already signed a release of liability form
Accident was minimal damage <$500
Excessive mileage per year on your vehicle (more than 30K per year)
Older vehicles, 10 years or more.
Your vehicle already has previous accidents with greater damage.
Your vehicle was a total loss in the accident.
Statue of limitation has lapsed.

If your vehicle is newer, I'd suggest talking to an adjuster and see what they are offering. From there you have a few choices. One, take what they offer. Two, tell them your neck is hurting and you're going to have some medical bills. Three, contact an attorney and let them take 30% and they'll go after the insurance company for you.

I know if someone hits my truck with a semi, or my boat, or my Infiniti, or even my wife's little Cruze hatch (which she had to have one with EVERY FREAKING OPTION) that they WILL NOT be getting of cheap.

[billnorman1]

I think if your car shows up on the list of repaired cars it will never be worth as much as one that doesn't. There should be a fixed percent paid if it does no matter how much damage was suffered.

[DixieChicken]

I think if your car shows up on the list of repaired cars it will never be worth as much as one that doesn't. There should be a fixed percent paid if it does no matter how much damage was suffered.

I agree, it will NEVER be worth one that has not been in an accident.

There is a percentage, it's just skewed to where they put a "multiplier" on it depending on what was damaged, and how bad. Then of course they double dip depending on the age and mileage.

I found years ago that the 'nice guy factor', the amount that they may pay one guy versus another, can be as much as $1500 on average. Go in with a killer shark attitude and they'll cut you to the bone. Go in with your hat in your hands, just a sad sack that is trying to see the light of day, thanking them for every little thing, THAT works a lot better.

[LTZ25]

I damaged my f250 platinum tailgate with my trailer hitch (one of the dump things I've done ) was gonna pay out of pocket till the shop said $3,000.00 for repair , I damaged that platinum looking thing on tailgate , so insurance came out and okayed the repair and sent two checks , one was for repair other was $1,100.00 for diminished value . All due to a big scratch .

[Bsktball55]

My wife had a 4Runner that was in a fender bender, rear bumper, couple thousand in damage, on trade in it had no effect on our trade in value. My Tacoma I recently traded in was in an accident, got hit on the side. Damaged bed, and space between the rear door and the bed. On trade in I got full trade value for it. Both dealerships knew about the accidents, it didn't effect them at all. These were both cosmetic accidents that were professionally repaired, may have been different if they had structural damage.