Auto Insurance Claims: Diminshed Value Claim Texas, diminished value

Question
I was recently rear ended by a person insured by Progressive. I have SL63 Mercedes 2009 which sustained 13,200 worth of damage . I had an independent appraisal for my DV claim and this report said the amount of diminished value was 14,000. I submitted the report in detail and Progressive offered me $2000 to settle. I told them thanks but no thanks and I would look at other options to get this matter settled. I have not talked to them in about 3 weeks but would like to give them another opportunity to provide a better offer. While I do not expect 14,000 I have been told by other appraiser if you settle for 40-50% then take it unless you want to go to court. Do you have any suggestions as how I should proceed at this time? I figure if they do not offer anymore then I will seek counsel and or file small claims myself. I know they are betting on the fact no action will be taken but I am not going down that easy. When I asked the adjuster how he got the 2,000 amount he said he looked on auto trader and looked at similar vehicles and checked the VIN (probably ran a car fax report) to see if the 4 he was looking at were ever in a accident and then he said he found one or two and said they were only being discounted by about 2000 compared to the other two which were not in accident. I ask for a documented statement describing how he came up with the offer and as I suspected, I have yet to receive any detail. Any help would be appreciated. Again my goal is not to get nasty and be fair and settle but then again I may not have any options, does it take a letter from an attorney to get their attention.

Answer
Tam,

  Sorry for the delayed response, I have been busy.  Anyway, let me start by saying that I think the diminished value finding is a little high, but I'd have to look at it a little more closely to be sure.  I do think you have a chance of getting more than $2000.00 and I also will say that Progressive is known for fighting diminished value, especially if the documentation isn't up to par.  There are procedures that must be used in order to develop a credible figure representing diminished value, and those procedures (scope and methods) must be disclosed within the report.  Additionally, the report should contain a terms and conditions portion that specifically addresses certain inherent issues required in a competent appraisal. Progressive is not stupid, but they will likely require that you take legal action before you will get a favorable response.  Unfortunately, (although it may not be true in all cases) my experience has been that they will test your muster.  Keep in mind that it is not them (Progressive) that has to prove diminished value, it is you.  Are you confident in your expert's report?  Also keep in mind that your vehicle is not a retail vehicle and that the largest market for a used vehicle is the trade in market.  So what is the likely trade in value of your vehicle?  It is highly unlikely that you would lose more than 30% of the reasonable trade in value on your vehicle.  If you are honest about figuring the reasonable trade in amount, then you should be able to come up with a maximum for the diminished value settlement (in my opinion about 30%, but sometimes more and sometimes less depending on the specific market) and don't expect to get the maximum unless your report explains why your vehicle is in the top percentile for diminished value . . . . anyway, a jury will expect you at least to be reasonable before they will "vote" for you.      

   I will refrain from making a public opinion on the dollar amount of your diminished value, but if you look me up directly, I'll give you my 2 cents if you'll give me a little more data.  You can find us a www.pettydetailsllc.com.

I hope this helps.