Auto Insurance Claims: Diminished Value, hurricane damage, diminished value

Question
Charlie, I'm trying get some understanding about diminished value. I own a 2002 Ford F150 Supercrew. 2 weeks ago today I was rear-ended and pushed into the car in front of me. As a result, the truck sustained an estimated $9600 in damages. The person that hit me only has a $20k physical damage policy, and there are 2 other cars besides mine to be repaired. The other 2 have minor damage. What I am trying to understand is, will the diminished value play a part in determining if my truck is totaled ? The Actual Cash Value of the truck is $21,500 and from what I understand of the insurance company I've filed the claim against, repairs need to reach 70% of the ACV of the truck. So it's about $6k short of that. But if the Diminished value is added to the repairs, that may push it over the edge ? If not, then I guess it would be a seperate claim against them ?
Thanks

Answer
Darin,

Sorry for being so late in answering your question, but our power was out for 6 days due to hurricane damage.

The claim for DV should be considered in terms of the ratio of loss to ACV. However, most insurance companies will stiff arm you on the DV claim and will not consider it as part of the loss for determining a total. They often say, "We don't pay for diminished value." But most do when pressed.

There is what is known as a constructive total loss, which is the loss amounts of the repair costs, rental costs, DV and loss of use. Those items my exceed the 70% threshhold, in which case the insurer might total the truck. That 70%, however, is not a figure set in stone and likely not mandated by state regulation or statute. They move those percentages at will. I would let the third party carrier know you intend to pursue a DV claim when the truck is repaired.