QuestionA little over a month ago I was involved in a head-on collision with me at about 10 mph and the driver at fault 30-35, she stated. There is no question of fault and her insurance company is who I filed claim with. My Jeep Wrangler is now back in my possession after them having to replace the frame, front axle, left control arm, among other parts. I live in NC and we have a law that states that anything over 25% damage must be disclosed to a potential buyer. I am trying to figure what the "diminished value" is, seeing that the NADA on my Jeep was $18200 and was told that the conversation between the body shop and insurance adjuster went something like, "Based on NADA of $18200, we have about $13k to work with and estimate is around $10k. Based on that, do you want to fix or total?" The answer was of course, total. The final cost of repairs was more around $9500, but you get my point. I would have been better off if they totaled it. But of course, the insurance company isn't worried about what's better for me, but rather themselves.
Medical bills will be paid and I have asked for a minimal amount for pain and suffering, considering my 22 month old daughter was in the back seat and my airbags did not deploy due to point of impact, so I suffered quite a bit of soft tissue bruising around my sternum. I have, in writing, what the local "Jeep Expert" dealership says they would pay for trade-in on my Jeep considering the damages I'd have to disclose, and also a print-out from my bank stating what they'd lend on it right now, and also clean and rough trade-in estimates. The woman at the bank told me I could probably expect to get no more than rough trade on it, which is a little over $11k, and the dealership put a value of $9500 on it. Is it even reasonable for me to demand that they pay me a diminished value claim of around $8k for all of this? What if I had to sell it tomorrow? Outright, people would either walk away or ask for a deep discount, and as a trade-in, I'm looking at $9500-11k at best. I have not hired a lawyer and think that through my own research I should have a good arguement if Ilook like I know what i'm taling about and will not back down. What do you think? Sorry for all the details, but I have a very special circumstance, apparently.
AnswerHi Kerry,
Your situation is not uncommon. This scenario happens every day across the country.
You are entitled to be paid for the diminished value of your vehicle, but you will need some professional help. There is a fairly new law in North Carolina that creates a process to reach a diminished value settlement. It requires that both sides (you & the insurance company) each hire an independent vehicle appraiser. This will cost you between $300 to $400. The appraisers will inspect your vehicle, review the repair documentation and write an appraisal report. Then the two appraisers will speak and try to reach an agreed diminished value figure. If they can not agree, then the two appraisers will select an umpire appraiser, the cost of which is split between you and the insurance company and then the disision of the umpire appraiser is final.
To learn more about the diminished value claim process and appraisal process visit www.collisionclaims.com
I hope this helps
Richard Hixenbaugh
