Diminishing Value (Car accident)

[jkeener71]

Need some advice on this topic, thank you.

[Nyt]

Need some advice on this topic, thank you.

 

Can you be a bit more specific than "Diminishing Value (Car accident)" ?

[jkeener71]

Got in a car accident, rear ended. Got it all fixed already, but my claim is still open since I am waiting for on replacement part. Someone mentioned to me to try and ask for re-imbursement for Diminishing Value, which I never heard of before. So basically wondering if any was has dealt with it and if it is worth it?

 

I asked one of my co-worker about it and he said it was a pain.

[dr_bowtie]

maybe Google it?

[VicVic]

Yes, I heard about it. When an old lady drove into to my rear passanger door, I asked insurance company about the Diminishing Value since the car never had any accident before.

They ended up paying me 1/4 of the car worth for whole incindent.  And the damage looked like the damage on many old cars lol.

[Black64]

Never heard of this, will use in the future though

[jkeener71]

I will have to look into this, just wanted to hear of some real world experience of it. Anyone please feel free to comment, thank you.

[jkeener71]

Wondering why I have to pursue it, and why isn't it automatic? Some things make no sense.

[Waco]

Generally with good insurance they'll make it like new...I got OVER KBB when my car was totaled after three prior accidents.

[cchalogamer]

Depending on how bad the accident was you may have damage classified as "frame damage" this can be something you wouldn't expect as very few modern cars have actual frames but a large portion of the cars structure is considered part of the "frame" in that case you have a serious drop in value to most consumers looking to buy the car in the future.  If there was no structural damage to the car then it's not likely to be much of a hit in value but for a zero accident car it can be a little bit.  

 

Also if someone says they "repaired" the frame damage in the event it was structurally damaged that's a load of crap in the eyes of people who buy cars at auto auctions/etc. you can not fully repair and guarantee the structural integrity of a car with repairs to the uni-body structure.  (replacement of bolt on panels are no big deal, but anything that requires straightening the structure of the car or welding to the uni-body structure = automatic frame damaged car MOST good used car dealers wont sell)

 

No where near enough info about the damage to know how much of this applies to you.

 

Source: I worked for about a year at the nations largest used car dealer as both part of the buyers department and in sales. I saw a LOT of cars and some with things really well hidden.  Nothing like a $50K Lexus a guys wife hit a parked car with, dealer body shop did some welding and fantastic paint work, car was worth ~40% less due to the damage because we couldn't sell it on the lot and the frame damage announcement at auction killing it.

[ccokeman]

Diminishing value is the reduction in overall vehicle value due to the fact it was in an accident. For instance if you go to trade in the vehicle you will receive far less than its normal value due to the accident. That difference between the normal and  post accident value is your diminished value. If you can get it get it now so that if and when you trade it in you can have that cash as a crutch against the reduced value of the vehicle.