RobMorgan

Does anyone have any experience or info on Diminished Value claims? I have a 2009 ZR1 that I have taken too good a care of - never been in the rain, 750 miles in the first 9 months. I had it at a car show and an idiot backed into it because he was not looking. His insurance (Liberty Mutual) paid to have it repaired at a quality repair shop of my choice and they did a good repair, but I have been discussing the fact that there is a diminished value because it is no longer a "no hit" car. They have been quick to establish a person to handle the claim and rediculous in their offer - they offered me $2K and basically say it is no different than a mini van getting hit. I hate to lawyer up and end up coming out with nothing while the lawyer makes money - but they won't budge without some "hard" evidence that the car has diminished in value. Any thoughts or suggestions?

mirage2991

I've never understood that deminishing value thing when it comes to minor things. If you had a head on collision on your car had to go on a frame machine, sure, but things that can be easily repaired (like bolt on pieces such as front/rear bumper or a fender) is just not enough in my opinion to deminish the value of the car. Of course, buyers will use that to their benefits, and you should tell them to take a long hike.
Concider this, knowing that you can get a new car for 15k bellow mspr, what do you think the "true" value of yours is? At this point, if you are satisfied with the repairs and you can't tell, then just save yourself the headachs! Just enjoy your car!

Dicecal

You are definitely entitled to diminished value. It's law here in AZ, and the insurance companies won't fight you over it. But, of course they will fight over the amount they pay out. You can pay an independent consultant to do a diminished value determination on your car, then at least you have something to barter with the insurance company.

ZOsixTT

Im going through that process now with my GTR, you are entitled to way more than 2k. You need to get a buy bid from a dealership, they will lowball you becuase it will have a bad carfax, use that info to set the basline, then compare to non damaged cars sell wholesale. They may just try to pressure you into takin 2K but that is rediculas.

If you were going to buy a 700 mile 2009 ZR1, for $100,000 with no accidents, or a 700 mile 2009 with 1 accident for $98,000, which would you buy. you should get well over 10K

Steven K. Richason

I went through this after a gent driving an SUV hit me head-on and ended up parked on the hood of my 2009 coupe. Vette was fixed and the shop did a great job. I brought up the issue of diminished value with his insurance. They came back with an offer of $750. It had been bumped with no damage the previous year, but it ended up in Carfax and the insurance company said as a result of that they would not give me any more because the damage to the value was already done.

I have prepaid legal and consulted with a lawyer. The manager at the body shop made a comment to me in which he said that if you get a lawyer, they will not talk to you anymore, and the lawyer agreed. Then it could start getting expensive which may quickly out run the damage.

My approach was to put together a package with letters from five different dealers with their opinions of the diminished value, a rather startling picture of the SUV on my hood, and as much pricing info as I good gather up from the internet, NADA and so forth. Bearing in mind that my car is probably not even worth half of a ZR1 the comp would be different for sure. In my case the damage came to about $8000. After sending a polite but firm letter making my case with 20 pages of supporting documentation, the company reviewed it and came back with a counter of $1000. I told the rep that was unacceptable and asked how far up the chain it had gone. I was told it had gone all the way to the top person in the company that handles claims. There was a long pause, at which time I was asked, "Would you like to talk to him?" "Yes!" I called and left a message thinking I probably would not get a call back.

He did call me, and we had a a very long cordial conversation. In my state, there is no requirement for them to pay me a nickel for diminished value, and I acknowledged that to him. I was never ugly to him but made the point several times that I had been wronged, was a completely innocent party and that prior to the incident, the car was pristine.

The letters from the dealers were critical in helping to "shape the battlefield" so to speak. Several had said that because of the damage and the very likely resulting Carfax, the car would definitely take a financial hit and might even be unsellable to some potential buyers. I can easily imagine that to be the case with a high end car like the ZR1. I was persuasive enough to get them to "stand in my shoes" that they tripled the offer, even though another lawyer at the firm told me I was wasting my time.

My advice would be to do your homework, present your case in a well written, concise letter with supporting documentation and push it up the chain if you have to. it is time consuming, and I also brought that up in the letter and asked for comp for that too, none of which would have been necessary had I not been hit.

Hope this helps. I feel your pain. Good luck!

RobMorgan

Thanks for the advise. Got a lead from the forum on a guy who does this and another from my dealer, so am going to try and present a case and see if I can get the insurance company to quit thinking of the ZR1 as just another Grand Caravan!

Turbooo2u

I'm willing to bet that many "fender bender" accidents don't show up on a carfax. Way too many used cars offer a Carfax to look at and I can't believe that only a few have had minor body work done at some point.

Z06 Sport

In today's world, when insurance pays they turn the information in to Carfax, body shop is supposed to report but rarely does so.

BTW, Liberty Mutual is the worst insurance company for paying claims. They basically fight and take the attitude that most people will not sue. Their premiums are not good either, just a lousy company with a good marketing strategy.

In this case, the diminished value will be very difficult to win much more than 2K. On the other hand, the car will be impossible to sell without a steep discount with so many untouched cars available now.

NotEnoughToys

So true, carfax is a bad thing in some ways.....

lgaff

Diminished value and your ability to successfully argue your case will greatly depend on the laws of the state. Very few states recognize diminished value unless it is being used an alternative to repair....for example if the car was not fixed.

Remember that insurance companies are highly regulated companies and generally pay what they owe according to the laws of the state you reside. In fact they are audited on a regular basis for compliance. When in doubt, ask to speak to a manager......most managers oversee thousands of claims per year and know the law.