Auto Insurance Claims: Diminished value, diminished value claim, diminished value appraiser

Question
I have a 2001 ext cab silverado which sustained 2200.00 in left front end damage. Not my fault. The body shop told me that the insurance would only give my 10% of the repair cost as a diminshed value  payment. Does this sound correct? I thought the amount was based off of the market value of the vehcile after repairs, not a Percentage of the repair itself?

Answer
Hi Fred,

Insurance companies will always try to minimize a diminished value claim. You should tell them that you want to make a claim for diminisihed value and see what they offer. If you do not agree with the offer, you would need to hire a professional diminished value appraiser to establish the loss. You then send the appraisal to the insurance company. Even with an appraisal it will likely be a negotiated settlement, so you are not likely to get the full amount of the appraisal. Based on the information you provided, I belive your diminished value will be in the range of $500.00 to $750.00.  The cost of a professional appraisal will be between $300. to $400. so I think in this case you should simply negotiate the best deal you can on your own and be done with it.

I hope this helps
Richard Hixenbaugh