Auto Insurance Claims: third party diminished value claim, scion xb, certified mail

Question
I was at a stop when I was rear ended by a bmw which caused me to crashed into the pick up truck in front of me. The bmw owner accepted liability and her insurance, Encompass is paying for my repairs and rental. I own a 2009 scion xb which is less than a year old when this happened. My car suffered about $7000 worth of damages which includes 7 hrs of repair for frame damage. I hired an auto appraiser to determine the dv of my car which came to about $7400. I called the adjuster at Encompass about claiming DV but he flatly said that they do not do DV for first or third party in Washington or California. I had to remind him that I am in Oregon and that the accident happened in Portland, OR and both the bmw owner and I are both oregon residents. I told him to point out where it says that I cannot claim diminished value on my car and he told me to expect a letter explaining the denial. He did not want to say anything to me after that and kept telling me to wait for the letter. I thought this would be a simple case of DV, considering the frame damage and that I will no longer able to trade in my vehicle as a Toyota certified vehicle. My question : Is there any reason for Encompass to deny me my DV claim? Also is there a law in Oregon that states that I cannot claim DV as a third party?
I did my research and found out that third party claim is relatively easier than first party claim and usually most insurance company will honor that. They have since started the repair on my car which will take a month and I am afraid that Encompass will stop paying for my rental because of my dv claim.

Answer
Marlina,

A third party claim against a liability carrier like Encompass can be difficult to settle. However, you must understand that they have no legal duty to you and can get away with lying to you over the phone. The trick to settling a DV claim is to do everything in writing and demand a written response. Send all communications by certified mail with a return receipt, which will prove that they got the claim. They are unlikely to lie to you in writing.

Send a demand letter to Encompass with your appraisal. Get a receipt for the certified letter and allow about 10 days for a written response. Also send a copy of that letter to the BMW owner to tell them that THEY will be held legally responsible if their insurance company does not settle the claim.

Be advised that there is no definitive measure of a DV loss outside of a sale, but the appraisal you sent will serve as a good starting point for a negotiated settlement. If they get to the point where they admit liability for the DV loss, but balk at the amount you are demanding, tell then you will sell the car and come back to them with a hard figure (the net proceeds of the sale/trade less what you just paid for the car).

If you sell the car you must make full disclosure to the buyer that the car was just repaired after an accident and has structural damage (the proper term for a car with a body like a Scion). Let Encompass know that you will make a full disclosure.

If after trying what I said they still don't make a satisfactory offer, let me know and e mail me directly at charlie@autoclaimshelp.net

Charlie