Diminished Value claim
10-31-2013, 06:29 AM
#1
AudiWorld Member
Thread Starter
Diminished Value claim
Hey guys,
Hoping to get some feedback on this.
My '10 S4 Prestige (that i just got in January) was broadsided by a stupid teenager in a truck back in August (he went thru a stop sign without looking) and sustained around $5k in damage to the driver side rear door, rear wheel well, and the rear rim. Control arms were bent too. No damage to the sports diff luckily. So basically just cosmetic stuff.
Anyways, I approached the insurance co about a diminished value claim as my previous car - Nissan Altima SE was rear ended and i had a heck of time trying to sell it (Carmax offered like $2k less than value because it had been in an accident, and most Nissan dealers wouldn't even touch it because it had an accident shown on the carfax). Ended up selling it myself on Craigslist. The other insurance gave me like $450 or $600 bucks for diminished value, which wasn't nearly enough.
So I want to make sure I'm not totally hosed by the insurance on this for my S4.
They have a 'formula' for diminished value and here's what she shot over to me:
Estimate of damages $4972.92 x 10% or $497.30
ACV $39050 x 5% or $1952.50
Total amount of $2449.80
Round off figure of $2500.
'Just be mindful if you choose to seek legal action you will bear the cost of an attorney and expert witnesses to prove your diminished value claim.
Also, if accepted, we will need you to sign a Property Damage Release.'
I told her $2500 seemed pretty low after what I dealt with with my old car (different insurance co) and she replied:
'What are you looking for? Do you have a figure?'
So what do you guys think would be reasonable to come back with?
Hoping to get some feedback on this.
My '10 S4 Prestige (that i just got in January) was broadsided by a stupid teenager in a truck back in August (he went thru a stop sign without looking) and sustained around $5k in damage to the driver side rear door, rear wheel well, and the rear rim. Control arms were bent too. No damage to the sports diff luckily. So basically just cosmetic stuff.
Anyways, I approached the insurance co about a diminished value claim as my previous car - Nissan Altima SE was rear ended and i had a heck of time trying to sell it (Carmax offered like $2k less than value because it had been in an accident, and most Nissan dealers wouldn't even touch it because it had an accident shown on the carfax). Ended up selling it myself on Craigslist. The other insurance gave me like $450 or $600 bucks for diminished value, which wasn't nearly enough.
So I want to make sure I'm not totally hosed by the insurance on this for my S4.
They have a 'formula' for diminished value and here's what she shot over to me:
Estimate of damages $4972.92 x 10% or $497.30
ACV $39050 x 5% or $1952.50
Total amount of $2449.80
Round off figure of $2500.
'Just be mindful if you choose to seek legal action you will bear the cost of an attorney and expert witnesses to prove your diminished value claim.
Also, if accepted, we will need you to sign a Property Damage Release.'
I told her $2500 seemed pretty low after what I dealt with with my old car (different insurance co) and she replied:
'What are you looking for? Do you have a figure?'
So what do you guys think would be reasonable to come back with?
10-31-2013, 07:30 AM
#2
Hey guys,
Hoping to get some feedback on this.
My '10 S4 Prestige (that i just got in January) was broadsided by a stupid teenager in a truck back in August (he went thru a stop sign without looking) and sustained around $5k in damage to the driver side rear door, rear wheel well, and the rear rim. Control arms were bent too. No damage to the sports diff luckily. So basically just cosmetic stuff.
Anyways, I approached the insurance co about a diminished value claim as my previous car - Nissan Altima SE was rear ended and i had a heck of time trying to sell it (Carmax offered like $2k less than value because it had been in an accident, and most Nissan dealers wouldn't even touch it because it had an accident shown on the carfax). Ended up selling it myself on Craigslist. The other insurance gave me like $450 or $600 bucks for diminished value, which wasn't nearly enough.
So I want to make sure I'm not totally hosed by the insurance on this for my S4.
They have a 'formula' for diminished value and here's what she shot over to me:
Estimate of damages $4972.92 x 10% or $497.30
ACV $39050 x 5% or $1952.50
Total amount of $2449.80
Round off figure of $2500.
'Just be mindful if you choose to seek legal action you will bear the cost of an attorney and expert witnesses to prove your diminished value claim.
Also, if accepted, we will need you to sign a Property Damage Release.'
I told her $2500 seemed pretty low after what I dealt with with my old car (different insurance co) and she replied:
'What are you looking for? Do you have a figure?'
So what do you guys think would be reasonable to come back with?
Hoping to get some feedback on this.
My '10 S4 Prestige (that i just got in January) was broadsided by a stupid teenager in a truck back in August (he went thru a stop sign without looking) and sustained around $5k in damage to the driver side rear door, rear wheel well, and the rear rim. Control arms were bent too. No damage to the sports diff luckily. So basically just cosmetic stuff.
Anyways, I approached the insurance co about a diminished value claim as my previous car - Nissan Altima SE was rear ended and i had a heck of time trying to sell it (Carmax offered like $2k less than value because it had been in an accident, and most Nissan dealers wouldn't even touch it because it had an accident shown on the carfax). Ended up selling it myself on Craigslist. The other insurance gave me like $450 or $600 bucks for diminished value, which wasn't nearly enough.
So I want to make sure I'm not totally hosed by the insurance on this for my S4.
They have a 'formula' for diminished value and here's what she shot over to me:
Estimate of damages $4972.92 x 10% or $497.30
ACV $39050 x 5% or $1952.50
Total amount of $2449.80
Round off figure of $2500.
'Just be mindful if you choose to seek legal action you will bear the cost of an attorney and expert witnesses to prove your diminished value claim.
Also, if accepted, we will need you to sign a Property Damage Release.'
I told her $2500 seemed pretty low after what I dealt with with my old car (different insurance co) and she replied:
'What are you looking for? Do you have a figure?'
So what do you guys think would be reasonable to come back with?
10-31-2013, 08:36 AM
#3
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I do not think there is an accurate "reasonable" number.
I think if you were to try to sell it today, the discount (because it was in an accident) is greater and frankly the car is higher end where buyers are going to be picky. Heck, you might not even be able to sell it unless it is drastically reduced to a point where someone simply can't pass it up.
Now fast forward 4 years from now when the resale is lower and in more people's price range and a different demographic. You might be able to take off 2k for the accident history because there is still an intrinsic value the car simply cant go below.
If it were me.. I would take it to my audi dealer and ask them to appraise it as if it never had an accident. Then have them pull the history and see it sustained accident damage and give you the new figure. Simply fax that to the insurance company for backup and ask for the difference...
Hope that helps..
I think if you were to try to sell it today, the discount (because it was in an accident) is greater and frankly the car is higher end where buyers are going to be picky. Heck, you might not even be able to sell it unless it is drastically reduced to a point where someone simply can't pass it up.
Now fast forward 4 years from now when the resale is lower and in more people's price range and a different demographic. You might be able to take off 2k for the accident history because there is still an intrinsic value the car simply cant go below.
If it were me.. I would take it to my audi dealer and ask them to appraise it as if it never had an accident. Then have them pull the history and see it sustained accident damage and give you the new figure. Simply fax that to the insurance company for backup and ask for the difference...
Hope that helps..
10-31-2013, 11:26 PM
#4
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[QUOTE=rxtrom;24504293]If it were me.. I would take it to my audi dealer and ask them to appraise it as if it never had an accident. Then have them pull the history and see it sustained accident damage and give you the new figure. Simply fax that to the insurance company for backup and ask for the difference...
QUOTE]
This sure sound like a great idea to me.
QUOTE]
This sure sound like a great idea to me.
11-01-2013, 04:43 AM
#5
AudiWorld Member
Thread Starter
I do not think there is an accurate "reasonable" number.
I think if you were to try to sell it today, the discount (because it was in an accident) is greater and frankly the car is higher end where buyers are going to be picky. Heck, you might not even be able to sell it unless it is drastically reduced to a point where someone simply can't pass it up.
Now fast forward 4 years from now when the resale is lower and in more people's price range and a different demographic. You might be able to take off 2k for the accident history because there is still an intrinsic value the car simply cant go below.
If it were me.. I would take it to my audi dealer and ask them to appraise it as if it never had an accident. Then have them pull the history and see it sustained accident damage and give you the new figure. Simply fax that to the insurance company for backup and ask for the difference...
Hope that helps..
I think if you were to try to sell it today, the discount (because it was in an accident) is greater and frankly the car is higher end where buyers are going to be picky. Heck, you might not even be able to sell it unless it is drastically reduced to a point where someone simply can't pass it up.
Now fast forward 4 years from now when the resale is lower and in more people's price range and a different demographic. You might be able to take off 2k for the accident history because there is still an intrinsic value the car simply cant go below.
If it were me.. I would take it to my audi dealer and ask them to appraise it as if it never had an accident. Then have them pull the history and see it sustained accident damage and give you the new figure. Simply fax that to the insurance company for backup and ask for the difference...
Hope that helps..
11-01-2013, 08:52 AM
#7
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Is this option available with all accident claims? Or does it depend on your policy? I'm not familiar with this option. Have only been in one accident that wasn't my fault.
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11-01-2013, 05:08 PM
#8
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It doesn't depend on your policy. Your own policy will not cover it as most companies specifically exclude it as part of your contract you have with them. It's a claim you make against the other driver's policy. Since you don't have a contract with the other person's insurance company, it can't exclude it. They know if push comes to shove the will have to pay you. Be firm with them and threaten legal action if they say they won't pay or if they play dumb.
11-02-2013, 02:31 AM
#9
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I would do some research on Carfax and see what they deduct for a vehicle that has a Carfax reported item.
It's also possible (not knowing your specific situation) that if your car was not towed from the scene and the claim is not on your insurance, that there will be no Carfax history. That's helpful.
But, the fact is Carfax is not the only deciding factor. If your car gets bumped, for example, shuts off the fuel pump (the case with many Fords), it still shows as a Carfax reported item.
Ask the used car manager at your Audi dealer, they should be able to help calculate that deduction formula for you without having to pay "an expert".
Just my .02
It's also possible (not knowing your specific situation) that if your car was not towed from the scene and the claim is not on your insurance, that there will be no Carfax history. That's helpful.
But, the fact is Carfax is not the only deciding factor. If your car gets bumped, for example, shuts off the fuel pump (the case with many Fords), it still shows as a Carfax reported item.
Ask the used car manager at your Audi dealer, they should be able to help calculate that deduction formula for you without having to pay "an expert".
Just my .02
11-02-2013, 09:39 AM
#10
AudiWorld Member
