Auto Insurance Claims: trade-in value damaged.., insurance comapny, insurance adjuster

Question
Mr. Hixenbaugh,
I recently reached a deal with a dealership to trade in my car on a new vehicle purchase.  They did not have the vehicle on the lot, so they were searching for one.  In that time, I was involved in a traffic accident (other party cited).  We both have the same insurance company, but different agents.  My dealer has given me an estimate for their body shop to do the repairs with new parts, as it obviously is better for the resale value on their end.  So, basically, I'm on the hook to get their estimate amount out of the insurance company.  They will obviously want to repair the car with used parts.  Is there a way to recover the difference in price, or am I just out of luck on the difference between the insurance adjuster's estimate and the amount my dealer is deducting from my trade-in value?  

I haven't been to the insurance adjuster yet, but the estimate my dealership gave me was about 2100.

Answer
Hi Kyle,

Most states allow an insurance company to specify after market or used parts in the repair of a vehicle that is over 12 months old or has over 12,000 miles on it. If the insurance company has specified used parts about all you can do is try to argue to see if they pay for the new OEM parts. If they will not, then you can try to argue for used parts. At least used parts are from the same manufacturer as your car. Your body shop may also be able to help you negotiate with the insurance company.

The other thing to consider is that now that your car has an accident history, the dealer may not give you as much for a trade-in. This is called diminished value. You may be eligable to receive compensation fromthe at-fault persons insurance comapny for the diminished value of your vehicle in addition to the cost of repairs.

I hope this helps
Richard Hixenbaugh