Auto Insurance Claims: diminished value due to used spare parts, inherent diminished value, motorist insurance

Question
QUESTION: Hello,


Recently I was involved in a car accident. My car is less-than
two-years old Mazda3 with just 13,000 miles on its odometer.
The crash was determined to be a fault of the other motorist.
Therefore this motorist insurance company will be covering my
car repairs.

The insurance adjuster has put in used spare parts specifically
door, panel, suspension, etc for my car repair.

I certainly do not want a used door or especially a used panel
which have been cut off from the older vehicle to be put on my
almost brand new car. I would like brand new spare parts to be
installed on my vehicle.


Could you please advice me how I can deal with this ? What is
the most efficient way to dispute the adjuster proposal about
the used spare parts?


If I insist on putting brand new parts, but the insurance
company will cover only used parts could I obtain an expert
report reflecting my vehicle's inherent diminished value and
later try to demand compensation from the insurance company?

If this is the case how can I obtain the diminished value
expert report? How can I demand compensation from the insurance
company?

Sincerely,
Rich

ANSWER: Rich,

First of all, the liability carrier for the guy who caused the accident has no legal duty to you whatsoever, which is why they are taking the cheapest way out in terms of the repair. The at-fault party, however, bears all the liability for the loss (repair costs and diminished value).

Your car will be inherently worth less once it is repaired, no matter how well it is done. Go to www.ICAN2000.com and search for local DV help where you see the menu for various people to assist you. You will likely find someone to assist you, one with credibility and experience in DV work. If there are no appraisers in your area to assist you, send me an e mail at charlie@autoclaimshelp.net and I will guide you through the process.

In order to put sufficient pressure on the other guy and get his insurance company to come around, send him a certified letter demanding that they rebuild the car he damaged with new factory parts, and send a copy to his insurance company (or fax it to them). Tell him in the letter that you will take legal action against him if the absence of a fair settlement in terms of the repair (take him to small claims court). His insurance company has to hire an attorney to defend him if you do this, so they will weigh the cost savings of the junkyard parts against the cost of hiring a lawyer---and the possibility of losing the case in court. That will usually do the trick,

And even if the capitulate and give you new factory parts on your car, you still are owed a DV settlement.

Charlie

---------- FOLLOW-UP ----------

QUESTION: Charlie,

Thanks again for your reply. I tried what you suggested.
Basically, I told the liability carrier of the at-fault party
that if they install used parts on my vehicle then I will take
legal action against the at-fault party and will demand the DV
settlement.

Unfortunately it appears the insurance company has not been
impressed with this statement. This a very large insurance
company which has stuff lawyers and I guess they don't have to
care about the attorney fee.

I would appreciate if you could give me other leads I could
pursue to resolve this issue.

Thanks,
Rich

ANSWER: Rich,

I suggest that you either hire a DV professional off the site I referenced, or file suit against the tort feasor and let them pay.

Charlie

---------- FOLLOW-UP ----------

QUESTION: Hello Charlie,

Thanks you for you advise. Presently I am trying to consult
professionals and get a diminished value report from the site
you suggested me.

The insurance company still refusing to install newer parts on
my car. Moreover they apply pressure on me to go with old spare
parts ASAP by telling me that if the repairs are prolonged
because of the spare parts dispute, the rental vehicle will be
taken from me before the repairs are completed. This means I
will be stranded for a number of days without any vehicle. This
would bring me to a terrible situation since I have small
children and this is the only vehicle we own.

I would like to ask what I need to do next once I get the DV
report? Should I file law suite papers which include this DV
report after the repairs are completed?


Sincerely,
Rich

Answer
Whomever you select for the DV appraisal should guide you in terms of how to file the claim, what steps to take, etc.

If the used parts are off the same year, make and model as your car is, they have satisfied their requirement with respect to what they owe you. If the parts have been refinished, repaired or show damage, then the body shop can return them to the source the insurance company provided. Then they  can select new replacement parts.