QuestionI had a reputable company do a diminished Value report on my Volov after my accident. Now the insurance company is trying to settle it. Here is my dilema the report I paid for says the diminished value is $10,968. The insurance company says it is only $5,272.56. Should I settle?
Date of Evaluation: July 1, 2005
Vehicle: 2005 Volvo XC90 4x4
Date of Loss: April 26, 2005
DOL: 9,982
Total Repairs: $16,973.00
The value Strouds assessed my vehicle was worth $43,870.00 prior to the accident, and estimated my post accident value at $32,902.00. Their opinion as a result of the April 26, 2005 collision my Volvo suffered diminution of the actual cash value in the amount of:$10,968.00. They have been very profession and extremely helpful.
O.K. my case is far from settled for injuries and such.
Progressive Insurance finally wants to settle on my claim for diminution of my Volvo.
Progressive claims the cost of the repairs were $16,684.55, because the tow bill of $307.75 needed to be deducted. They broke down the total cost of repairs: $7,343.12 parts, $4,651.20 labor, $2,865.60 paint and refinish, and $715 frame labor.
Progressive claims that the MSRP on April 26, 2005 which was sorted by Pacific NW Regional price variation, mileage, equipment, features and options was $36,615.00. That NADA Value for my Volvo XC90 was only $36,615.00 at the time of the accident. (I find this VERY hard to believe).
Progressive Insurance wants to settle my claim for $5,272.56.
I'm hoping you can give some advice on what I should do prior to talkingwith my attorney. My attorney has stated that he has never done a Diminished Value Claim. I have pulled up the value of my vehicle today at the same mileage at Edmunds.com and they have the value listed for over $30,000 on 12/26/07.
Is this an average settlement? Should I except it? I just want to seem knowledgeable prior to talking with my attorney. Any info you feel is relevant I would gladly appreciate.
Thank YOU!
AnswerHi Marie,
Generally, diminished value settlements are the result of negotiations. That is to say thet neither party gets all of what they want. In your case you asked for $10,968.00. It is sage to assume the insurance company would rather pay nothing. As a compromise they have offered you $5272.56.
When I do a diminished value appraisal for a client I will tell them tha a reasonable settlement is an amount of 70% or more of the amount I indicated on my appraisal. So in your case 70% of $10,968.00 would be 7677.60. You should try to negotiate somewhere in the middle. Offer to split the difference between the 2 figures. The split point would be $8,120.33. That still gives you some room to negotiate since the 70% point is $7677.60.
I hope this helps
Richard Hixenbaugh
