Should the insurance company have to pay diminished value on my vehicle?
I was rear ended in an accident and luckily the trailer hitch took all of the damage. I had Carvana do an appraisal and they deducted 2k because the accident shows up on carfax even though there was no damage. The other parties insurance is refusing to pay the diminished value and their reasoning is because they was no actual damage. Do I have a strong enough case to go to small claims court?
- Obi Wan KnievelLv 74 weeks ago
Carvana and Carfax don't do professional appraisals, and there is actually no such thing as a valid claim for diminished value.
Diminished value is one of those ethereal ghosts that must be out there, just like the infamous sports car classification and the elusive red paint surcharge. It's something that everyone knows is real, even though nobody actually knows how they know it.
Diminished value is said to work like this: Vehicles with prior damage are worth less on the resale market, so you should be compensated for that loss. Especially if the damage wasn't your fault. And it makes sense on the surface. But when you get down to the real reality of here and now, it loses all its value.
Claiming compensation for actual damage is easy. Your vehicle got damaged, it costs this much to fix the damage, so that's what you'll be compensated for. Simple math. But when it comes to diminished value, how do you prove what you lost?
That question is immensely important, because insurance companies don't pay anything to anyone (ever) unless they can prove exactly how much they lost. And you can't prove diminished value.
In order to prove diminished value, you'd have to know exactly when you'll sell your vehicle AND how much more you would have been paid if that one accident (only that one accident, not wear & tear, not gradual depreciation, not mechanical breakdowns, just that one accident) had not happened. Seriously, how do you prove that? How do you even isolate it?
That's why there is no such thing as a diminished value claim. You'll never be compensated for a loss you can't prove, and you can't prove diminished value.
- MayLv 54 weeks ago
First, you would have to get a written appraisal by a "expert" as to the car's value both before and after the accident. If there is indeed a "diminished value" then you can try suing in small claims court against the other driver (not the insurance company).
My opinion: You don't have a legal leg to stand on.
Carfax is waaaay over rated. They are NOT "experts"
- ANDRE LLv 74 weeks ago
Will the Insurance Company Pay for Diminished Value in My Claim?
You may be able to get compensated for the diminished value following a claim, depending on the circumstances, and which state you are living in. Each state and insurance company has different policies. Insurance companies don't always pay for a vehicle's diminished value but many consumers feel that it is the insurance company's responsibility to pay for a diminished value claim. Insurance companies in most states will consider who is responsible for the accident to decide if they will pay a diminished value. In other states, they may not pay at all.
Diminished Value After a Non-Responsible Accident
If you had a non-responsible accident, the insurance company is more likely to cover a diminished value claim.
When someone else is responsible for your loss, you may be able to legally pursue the third party (the person responsible for the accident) or their insurer, but always ask your insurance company to pay your claim first, it could save you a lot of trouble.
- BortLv 64 weeks ago
There was no damage. Auto companies pay out to claims only when there is damage. There's no actual damage so they aren't going to cover it and a court is going to likely sigh and roll their eyes at this too.
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- CactiJoeLv 64 weeks ago
You can give it a try in small claims. Make sure that you have the vehicle inspected by a body shop and they write down that there is no evidence of any body damage on the vehicle and or what if any damage is present.
- Anonymous4 weeks ago
You don't need a strong case to go to Small Claims Court.
You need a strong case to win. That involves PROOF that you car is valued higher than the price you are being offered.
So gather PROOF ...
- Anonymous4 weeks ago
You have no case. Sell your car privately.
- regeruggedLv 74 weeks ago
No. Diminished value is not a valid claim.
- Anonymous4 weeks ago
To do what exactly? "You have NO actual damage"
Judge Judy would TOSS YOU OUT OF COURT. You get no money because there was no damage.
. You are just now being made aware of the "CARFAX" report. Your car was worth less than you believed it to be....mainly because you never did a CARFAX check yourself.
. Maybe when you sell the car someday, the buyer will NOT DO A CARFAX check. Kind of like what you did when you bought it. So, no change to your asking price. All cars lose value as they get older. That is NORMAL.
You have no case. Be happy. No damage either.
- CBLv 74 weeks ago
No, but if you got quotes from three reputable car buying companies with similar results you may have a case for the average diminished value. Car Max and GivemetheVIN.com should be sufficient.