Auto Insurance Claims: Total loss and Diminished value, diminished value, frame damage

Question
I was in an accident last week in FL. The car in front of me stopped suddenly in a merge. I put on brakes and stopped behind him, however a truck then smashed into the back of me and pushed me into the car in front. The driver who hit me ditched the car on the side of the road and took off and when it was run, it had no insurance. My auto shop has estimated the repairs at around $10K. They say my 08 Camry is worth $18K or $19K, even though kbb, edmunds, and nada tell me the most private party is worth is $17,500. They say there is no frame damage, but I saw the trunk mashed in and I'm worried it will never bee the same, not to mention my diminished value. Can I request that my insurance total it out or compensate for the Diminished value? What are my options since I can't go after the other truck's insurance? Can I go after the owner of the truck, who it was registered to, even though she wasn't driving?

Answer
Hi Amy,

Most insurance companies will declare a car, light truck, or SUV to be a total loss when the preliminary cost of repairs  reaches some pre-determined percentage of the vehicle's value. Generally, the percentage used is anywhere from 70% to 80%. In Florida they generally use 80%. A total loss is declared when it is determined that it is in the insurance company's best financial interest to declare the vehicle a total loss. This percentage is an insurance industry practice and in most cases is not related to a state law. There are only a few states that require a vehicle be declared a total loss when a certain threshold is met. Most states allow an insurer to repair a vehicle all the way up to 100% of the vehicles value.  Another way insurance companies calculate if a vehicle should be totaled is to determine what they could sell the salvage for and then subtract that figure from the value of the vehicle. If the cost to repair the vehicle exceeds that figure then the vehicle is a total loss.

Unfortunately, in Florida you can not receive compensation for the diminished value of your vehicle from your own insurance policy. Since they do not have to pay it your insurance company will not even consider the diminished value. You should make sure that the body shop does a tear down to be sure all damage has been identified. It is often the case that once the repairs begin that additional damage will be found. However once they begin, it is unlikely the insurance comapny will total the vehicle no matter what is found.

It would likely not be worth going after the vehicle owner. If the truck was not even insured and they allowed a person to drive who simply ran away from the scene of an accident, it is unlikely they have anything worth going after.

I hope this helps
Richard Hixenbaugh