Question2006 Subaru Tribeca rear-ended 7-14-06. I am gearing up for the battle to have my car replaced. Have studied your web answers but am not sure about this new car scenario. 8,600 miles on car, mint condition. Do not have the adjuster repair estimate, but extensive frame damage is evident. Have had the car only 7 months and it is paid for. I am determined not to be the loser on this one. Any suggestions?
Answer
Diminished value car accident claim
Damaged frame diminished value auto insurance claim
Managing Medical Care After Auto Accident:
Chiropractors Most Effective Severe Whiplash Car Accident Injuries
Do-it-Yourself Insurance Claim Settlement
Dear Tina,
You already show me that you will be successful because you took the time to read my other answers on this topic. That is a good sign since doing your own research can be a powerful tool in achieving a fair settlement for BOTH your property damage AND your personal injuries suffered in that big trauma.
Since others may not take the time to read the old answers on this topic, let's refresh for everyone what a diminished value (DV) claim is, and the circumstances wherein it will be awarded.
I am going to start with the four requirements right off the bat: 1) a third party claim; 2) a relatively new car; 3) repair, NOT REPLACEMENT; and 4) significant damage to important parts such that the market will lower the price when the accident is revealed upon a later sale.
I do not know whether or not you meant to use the phrase "battle to have my car replaced" or not. If in fact your car is going to be totaled, that is to be REPLACED (instead of repaired), then of course there IS NO DIMINISHED VALUE CLAIM. You will get the actual cash value of your car BEFORE the accident, so the damage is not relevant to valuation.
Now, assuming that in fact you did not mean what you wrote, and that your car is going to be repaired instead of being replaced, then a diminished value claim is very much in order of consideration, given the age of your vehicle and the seriousness of the damage to its frame.
FIRST PARTY CLAIMS CONTROLLED BY YOUR POLICY
You did not tell me whether this is a first party (your own company) claim or a third party (the tortfeasor's company) claim. It is true that the insurance industry has cut down on FIRST PARTY diminished value claims simply by adding prohibition clauses to their "take it or leave it" contract forms. So, check your own policy, or if you cannot understand it, call your insurance commissioner http://www.settlementcentral.com/links.php
Assuming, then that you do have the right to make a diminished value claim, here are the factors to consider, as you have no doubt read in my previous posts.
First, the one and only true test is to prove that the market place is going to devalue your vehicle because of the accident.
How and why will the market place show a different value for some vehicles, but not others with similar damage?
It depends upon the age, condition, and value of the vehicle before the accident.
In your case, this is a good example of a car that the market place will likely show a reduced value when compared to exactly the same model, but without the extensive frame damage.
You CANNOT PROVE THIS CLAIM ON YOUR OWN. It will take an expert opinion as to the market for your vehicle both pre and post-accident. Therefore you need to find an expert who would testify that there was in fact a diminution in value because of the accident.
If you can find someone to make an appraisal (there are tons of "expert" services online under diminished value), then it is simply a matter of including his report in your demand letter and demanding the amount by which your car lost value. Make sure that you do give consideration to proof of your loss in terms of the four hooks upon which one hangs the evidence of diminished value.
The first hook is that of the power of destructive force of the accident. Diminished value payments may be warranted where there is significant damage from an accident. So, the adjuster and the market place are more likely to see diminished value where there was a big hit and a lot of damage.
The second hook upon which you can hang the evidence to prove a diminished value claim is the INHERENT RISK of diminished value whenever we have a big trauma and repair.
It is very likely the case that one will have to reveal the facts of a big accident to any prospective purchaser of his vehicle. In most states, there is a seller's disclosure statement to be completed upon sale. Thus, your potential purchasers will have knowledge of the accident.
Even if you never would have to disclose this damage in your own state, there could be a record of serious repairs that was filed and will surely be picked up by outfits like www.carfax.com, which is used to check out serious damage repairs for prospective buyers.
Thus, it is even more certain that a potential buyer will have knowledge of the fact a vehicle was in a serious accident. Therefore, we are justified in assuming that the market place will value your car with the knowledge of the accident.
If the expected market value of this imaginary vehicle before the accident were $32,000 and a buyer had a choice of two twin vehicles, one of which had $12,000 worth of good competent repairs done to it, which one would be sold first? Or, conversely, what would the market penalize the one vehicle for having been in that serious accident?
Given no other information than this, the market may penalize you for the inherent problem of having had a serious accident.
The third hook upon which you can hang the evidence to prove a diminished value claim is the nature of the damage. It makes a difference what was damaged: FLUFF OR STRUCTURE.
What if the repairs were just sheet metal and trim and paint, as opposed to important structural members that were damaged? In your case, you mention extensive frame damage. Even if that is repaired 100%, the market place is going to punish you in valuing your vehicle: no one is willing to consider your car to be the same as an unblemished one.
The forth hook upon which you can hang the evidence to prove a diminished value claim is the quality of the repairs and the quality and importance of replacement parts. What if the REPAIRS were NOT DONE to pre-accident standards?
This would take an examination by someone knowledgeable, but it might be a good investment. They can spot things you and I would miss, such as paint being where it should not be, panel spacing not being even on trunk, hood, doors, etc, welds not being proper, or important parts being replaced with INFERIOR AFTER-MARKET FOREIGN-MADE PARTS.
That is just about it: the test is, what would the market place do about the knowledge of the repairs. In your case, the market very well may make distinction, and to that extent you will have diminished value, but I have no idea how much.
It is best to invest in a professional report. There were dozens of outfits around the nation willing to make diminished value reports, so you will just have to check them out and pick one that appeals to you.
NOW, ON TO PERSONAL INJURIES. You did not think I was going to let you go off and focus on getting $4,000 more for your car but leave twice that or more on the table because you forgot to document your bodily injury claims.
I am a little worried that anyone with THAT MUCH PROPERTY DAMAGE likely sustained some pretty good trauma, and soft tissue injuries have a way of creeping up on you weeks or even months later when you start to get active in your first summer season since the accident.
After a weekend of physical activity, you may notice a dull ache that night or the next morning, or for the next three or four days. If you were able to do these spring and summer activities before the accident without the same kind of pains, then that is a sign that you have residual soft tissue damage, and we need to account for that in making your settlement.
Many people want to ignore that little nagging pain that comes after a full day at work or after doing spring or summer yard work or other outdoor activities. They do not realize that often times soft tissue injuries do not manifest until weeks or even months later.
There may be a dull ache at night following some physical activity or pain the next morning. DO NOT LET LITTLE PAINS GO UNATTENDED SINCE YOU DO NOT KNOW WHETHER THEY WILL CONTINUE OR GO AWAY. We all hope and believe that such little pains will disappear soon. But on the other hand, we have no way of knowing since this is the way serious soft tissue injuries can behave.
You can certainly report that the pains were noticed some time ago and that you felt they would go away. But if you have been active in the past and had no pains or restrictions on your full physical involvement, then you need to know that any pains you are having this now are likely due to traumatic injury to your soft tissues in your neck or back. Make a note of what you can recall of dull aches and pains following physical activity and—assuming you have never suffered this kind of pain before—let the doctor know that these were present only after your car accident.
No problem if you have no aches or pains out of the ordinary for restarting activity after a winter of inactivity. BUT, if there is some nagging pain that shows at night or the next day following activities you did in summers past, DO NOT IGNORE IT AS IT MAY WELL BE DUE TO YOUR SOFT TISSUE INJURY.
Naturally, insurance adjusters do not like to hear this, or even think it might be true. But soft tissue does not heal as it was before inasmuch as scar tissue lacks the elasticity of the damaged tissue.
If you do have such out-of-the-ordinary pains following physical activity, then by all means CHECK IT OUT WITH YOUR DOCTOR BEFORE YOU RESPOND TO THE ADJUSTER. You can open your own PIP claim or health insurance claim to pay for your medical or chiropractic expenses.
If the pains are new post-accident, then SEE A DOCTOR AND ATTRIBUTE THE PAIN TO THE ACCIDENT WITHOUT EQUIVOCATION. It is NEVER TOO LATE TO REPORT PERSONAL INJURIES FROM A CAR ACCIDENT http://www.settlementcentral.com/page0104.htm
Managing Medical Care After Auto Accident: http://www.settlementcentral.com/page0203.htm
"No medicine: no money"; medical costs increase value of personal injury claims http://www.settlementcentral.com/page0045.htm
And, of course, once you settle, that is it: no one will be there to pay for your future medical or chiropractic care; nor will you ever see another dime in pain and suffering money. By the way, did you know that getting an early settlement is a favorite trick of the insurance adjusters? Please see my website wherein we show Insurance Claim Adjuster Secret Tactics http://www.settlementcentral.com/page0092.htm
According to Our http://www.SettlementCentral.Com Members, Chiropractors are Most Effective in Severe Whiplash and Soft Tissue Car Accident Injuries http://www.settlementcentral.com/page8010.htm
Without having to join my website, I have given a lot of free information on handling insurance claims without having to join as a member. Read the module at "5 Easy Steps to Do-it-Yourself Insurance Claim Settlement" http://www.settlementcentral.com/page0102.htm
Write Effective Personal Injury Insurance Demand Letter http://www.settlementcentral.com/page0170.htm
FINAL TOPIC: Effective communication with insurance claims adjusters.
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let him know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the feedback form on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
