Auto Insurance Claims: Diminished value, Auto Diminished Value

Question
Hi,

I have a new 2010 Ford Edge.I got it in March. I was rear-ended recently.  The other driver was ticketed. My car had severe damage to bumper, tailpipe and electrical system. The repairs are now complete and look good.I was offered $500.00 from their insurance company for diminished value to my vehicle. This amount seems low to me. I am concerned that I will suffer a greater  $ loss if I decide to trade my car in . Your thoughts?  Should I be concerned? If so, do I have any recourse pertaining to the amount that I can collect for diminished value? Are their guidelines that help me determine if the adjuster has offered me the fair value? The car has less than 10,000 miles on it...and is only 7 months old. Thanks...  Joe

Answer
Hi Joe,

The amount of diminished value a vehicle suffers is dependent on the age of the vehicle, the type of vehicle and the severity of the damage. In your description of the damage you used the word "Severe", however, you stated the damage was to the bumper, tailpipe and some electrical system. If the damage was restricted to the bumper, tailpipe and some wiring repair, this would be considered to be minor to low moderate damage. Based on your description, I would assume that the cost of repairs was around $1500.00 or less. If this is the case, then the diminished value will be minimal and you should accept the $500.00 offered to you.

If my assumptions are incorrect and your damage was much more significant then you may need to contest the amount of the diminished value.

To learn more about diminished value visit: www.collisionclaims.com

I hope this helps
Richard Hixenbaugh