Auto Insurance Claims: car accident while parked, diminished value, total loss

Question
My Honda odyssey 2005 was hit by a car while it was parked in my own property. Now that driver's insurance company is trying to fix my van, as it was estimated about $9300.00 and they said they will use recycled parts but not a Honda parts. I don't want to fix this Van but want them to Total this Van. Also they are just paying only $700 as a depriciation value, which I am not satisfied. What do you think I should do ?

Answer
Hi Urvashi,

It is solely the insurance companies decision to repair or total the vehicle. It will only be totaled if the cost of repairs is more than 75% of the retail value of the vvehicle. On a vehicle that is more than 1 year old the insurance company is allowed to use salvage parts. Salvage parts are original Honda parts from another vehicle just like yours that has been totaled but still has usable parts.

The amount of diminished value they have offered is way too low. On that vehicle the diminished value will be Between $3,000.00 to $4,000.00. In order to get the insurance company to properly compensate you for diminished value you will have to hire a professional diminished value appraiser. For more information on diminished value visit www.collisionclaims.com .

I hope this helps
Richard Hixenbaugh