nsxt2000
11-01-2007, 02:55 AM
To have an accident is trauma enough. Hopefully there are no injuries and you are left to deal with the repair of your car. To keep within regulations established by each State's insurance commissioner or equivilent, most insurance companies try to "deal in good faith" when negotiating a settlement. However this does not mean that they are overly generous with an estimate - quite the contrary. As a rule it is the job of the adjuster to minimize his companies exposure. If the insurance company happens to not be your carrier, it can be even tricker to get an equitible settlement.
Assuming you have reached what all parties feel to be fair for all concerned is that the end of it? Frequently yes.
But there is yet another final issue to consider and that is "dimunition in value" of the vehicle in question. Any car that has been involved in an accident is worth less than a like vehicle that has not. It is a fact of automotive life. In a recent survey 55% of those polled said they would not buy a car if it has been involved in an accident. They were worried about problems down the road. Of those who would buy such a car, 80% said they would not buy it unless the price was reduced to reflect the accident.
Diminution in value procedures and policies vary according to State rules and regulstions. What is true in all States is that the insurance company is not going to advise you that you are due diminished value monies. You have to ask for it!
The question then comes up - "If I ask for and receive a check for the diminished value of my car, will my insurance rates go up?" There is no definitive answer, but in theory the answer is no. Diminished value is a separate issue from your insurance policy. This is especially true if you are not at fault and the claim is being handled by the other party.
So the point of this post is to make forum members aware that diminished value exist and it something you should inquire about should the situation arise. There are many on line sites that specialize in diminished value cases, but hopefully armed with knowledge you will be able to resolve the matter yourself. Even more hopefully you will never have an accident and therefore never walk this path.
-Mike S.
Assuming you have reached what all parties feel to be fair for all concerned is that the end of it? Frequently yes.
But there is yet another final issue to consider and that is "dimunition in value" of the vehicle in question. Any car that has been involved in an accident is worth less than a like vehicle that has not. It is a fact of automotive life. In a recent survey 55% of those polled said they would not buy a car if it has been involved in an accident. They were worried about problems down the road. Of those who would buy such a car, 80% said they would not buy it unless the price was reduced to reflect the accident.
Diminution in value procedures and policies vary according to State rules and regulstions. What is true in all States is that the insurance company is not going to advise you that you are due diminished value monies. You have to ask for it!
The question then comes up - "If I ask for and receive a check for the diminished value of my car, will my insurance rates go up?" There is no definitive answer, but in theory the answer is no. Diminished value is a separate issue from your insurance policy. This is especially true if you are not at fault and the claim is being handled by the other party.
So the point of this post is to make forum members aware that diminished value exist and it something you should inquire about should the situation arise. There are many on line sites that specialize in diminished value cases, but hopefully armed with knowledge you will be able to resolve the matter yourself. Even more hopefully you will never have an accident and therefore never walk this path.
-Mike S.