Auto Insurance Claims: Deminished Value Claim, Diminished Value

Question
Hi Mr. Petty,

My car is 2006 Honda Accord SE with 53K Miles...I was involved in an accident 4 months back and I finally got the car back. The repairs cost (OEM parts were used) was $5300 approximately and it involves frame damage (6+ hrs of frame damage work). Insurance company offered me $1000 as DV. But when I went to sell it for Carmax they offered my $6500. None of the Honda car dealers were interested in buying my car as they cannot sell it as certified or resell on their lots. I have approached a auto loss attorney and they said I should be getting atleast $5000 in DV. Please advise on how I should be processing? Should I settle to an amount directly? or go with auto loss proffesional?

Answer
Pradeep,

  You definitely have more than $1000.00 in DV, but I don't think you have $5K.  The best way to recover diminished value is to have a credible professional evaluate the real diminished value provide a certified report reflecting the value, and then file a small claims suit if the limits are high enough.  Any credible report will comply with USPAP (or equivalently acceptable) standards in evaluating your loss and the specific expert should be willing to testify in court.  

  Once you know the amount a professional would places on your diminished, then you will have a better idea of how to move forward.  If the insurance company will not negotiate reasonably, then you have to decide whether you wish to take legal action.  Dealers are generally not considered "impartial" because they sell vehicles for profit which creates a conflict in their opinion about value.  

  Petty Details, LLC has the best success rate in the industry for diminished value recovery.  We provide realistic reports that are usually accepted by insurance companies, and always accepted by courts.  One of my clients settled for $700.00 on a 1998 Honda Accord with 120000 miles and $3200.00 in damages, but only after filing a small claims suit.  If you can't get $2500.00 for your lost value, I would think it would be worth a fight.