Am I entitled to the difference in value of my car after a collision?
Posted on Jul 31, 2009 under Time Share Resales | 7 CommentsI am asking this question for my parents they own a Volvo station waggon that they just purchased brand new in July. They were rear-ended this weekend and now have damaged to be fixed on the vehicle. This will in turn report thier car to carfacts and lower the trade in and resale value. My parents always keep immaculate car of every car they own. My question is, is a person entiled to compensation for the value they will ultimately loose from a collision that is not thier fault? Please share if you had a similar situation and how it was resolved with the insurance company.
I would just like to add that my parents are good people and would not like to get one over on anyone but are just worried about the substantial investment they recent made in this vehicle. This is by far the most costly vehicle they have ever owned.
yes and no. they can ask for dimished value. there is really no LAW on the books stating they have to get it. diminshed value is not going to give them much. most compaies fight to even pay it and then never pay what we think should be paid. i was rearended in a brand new car and about $5000 in damage was done. i got $500 in diminished value. compnaies make it so hard to get this, that most people actually give up on getting it. have your parents contact the insurance adjuster handling the claim and tell him they want to know what they need to do in order to get it.
August 1st, 2009 at 12:18 am
They are entitled to the amount of money required to repair the damage (minus deductible if their insurance is paying). Nothing more, nothing less.
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August 1st, 2009 at 12:48 am
They are entitled to have their loss restored. However, the difference in value between a repaired car and one that’s never been in an accident is hard to get to from an insurance company point of view. They are very resistant to paying that.
But certainly, when somebody harms you financially, you have every right to expect them (the person, not the insurance company) to make it right. That right transcends anything an insurance company may say or do.
P.S. Your parents are mistaken about the Volvo being an investment. It’s not. It’s just transportation, and one day it’ll be melted down like any other Volvo.
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August 1st, 2009 at 12:58 am
Yes. Some states allow you to get the difference. Contact a lawyer and he/she should be able to let you know right away. NY doesn’t i can tell you that much
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August 1st, 2009 at 1:11 am
A car greatly depreciated in value the instant you drive it off the lot. By the time they’re done with that car and decide to purchase a new one, it won’t be worth much. Check out http://www.kbb.com and enter the information about the car. Rather than it being in "excellent" condition, input in a lesser level. It’s not a huge difference, and assuming your parents will keep this car for years (rather than a year, as some people do), it’s not going to matter in the long run.
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August 1st, 2009 at 1:22 am
tell your parents to get GAP insurance incase a total loss of their vehicles happens but about the carfax and to resell I don’t think there is anything you can do about that except get rid of the car/trade in ect.
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Insurance CSR
August 1st, 2009 at 1:31 am
Yes they are……………..
It is called diminished value and your parents will have to talk this out with the insurance company.
A good rule of thumb, if the total damage is $10,000.00 then your parents would want to ask for around $7,500.00
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923
August 1st, 2009 at 1:55 am
yes and no. they can ask for dimished value. there is really no LAW on the books stating they have to get it. diminshed value is not going to give them much. most compaies fight to even pay it and then never pay what we think should be paid. i was rearended in a brand new car and about $5000 in damage was done. i got $500 in diminished value. compnaies make it so hard to get this, that most people actually give up on getting it. have your parents contact the insurance adjuster handling the claim and tell him they want to know what they need to do in order to get it.
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agent