Diminished Value in an accident

Recognizing that laws are different in each state and that calculations are different by insurance company, I'm curious what you have experienced with a 2016/2017 Tacoma if you have been given a diminished value payout as a result of an accident?

I was in an accident in November that caused $9k in damage that included what turned out to be minor, repairable frame damage. I'm at the point of negotiating DV and have received an intitial offer that I'm not satisfied with. I'm curious what others have found.

 

If you are not satisfied with the offer, crunch some numbers and do some research and set a counter offer with evidence as to why. My corolla got totaled recently, I got insurance to pay $2200 more than what their initial offer was. Used the money to get my new Tacoma.

 

Right. I understand the need to crunch some numbers but am not sure what to use as a basis. I'm heading over to the local Toyota dealer at lunch to talk with the used car manager and try to gain some intel.

 

After going through this whole deal with my last car before I got the taco, I can tell you that without any solid numbers you don't really have any leg to stand on against an insurance company. There are a few options in getting the most from your diminished value. The easiest option would be to go to the dealership and get an appraisal. The worst part is that they are going to give you the trade in price. Some body shops also give appraisals based on what work has been done to a car. A second option is to use the formula(I can't remember what it's called but it was based off of an insurance court case... and it sucks for the person who got in the accident) that is the "industry standard" which leans far towards the insurance company's side. Lastly, and probably the most expensive, but best in terms of negotiating leverage would be to get a professional depreciated value appraisal done on the truck. A lot of factors come into play here. They take the condition of the truck before and after the accident, amount of work done to the truck, craftsmanship of repairs done to the truck, and if there are any lasting effects from the accident.
This is where you have to make a decision. At what point do you cut your losses and take what he insurance company is going to give you. Honestly, 9k isn't a huge amount of damage to an almost 40k truck. What is the most you could possibly end up getting for a DV check?
My advice, check the formula, get a quote from a dealer. It's probably not worth going through all the effort of getting a professional DV appraisal done then having to pay the 6 or 700 to get it done, then getting it taken out of whatever you are able to negotiate with the insurance company for.

 

My Google-Fu brings up some starting points...

http://www.kielichlawfirm.com/insurance-companies-calculate-diminished-value-claims/
https://www.yourmechanic.com/articl...e-diminished-value-of-your-car-by-elan-mcafee
http://www.wikihow.com/Calculate-Diminished-Value

 

1. Correct term is "diminution of value".

2. Here's a state by state go-by:
http://www.independentagent.com/Edu...DiminutionOfValueStateByStateListingChart.pdf

3. You will likely need an independent appraisal to maximize your return.

 

the other thing to remember here is that the insurance company's primary goal (other than losing as little as possible) is to get you to sign the release. Stand fast on your demands for a week or so, i bet they make you a better offer. Most insurance companies will also pay a generic $1500 pain and suffering/inconvenience benefit to the driver and or passenger of the not at fault vehicle. With those two added amounts you will be better off than just taking their first offer.

 

The problem with DOV is that unless you are planning to sell the vehicle right now, it can be very hard to calculate the future value lost.

While working as an adjuster, the largest DOV claim I ever settled was for around $6,500. It was a brand new Buick Enclave that had damage equal to 60% of the vehicle's value (which at the time was around $38k). The only reason he got that much was because he sold the vehicle immediately after the repairs were complete and it was a very high demand vehicle for that area.

From personal experience, I received $400 on $4k worth of damage and $750 from $4,400 worth of damage. Based on that information, you might want to shoot for 10-15% of the damage, assuming you plan to keep the vehicle.

 

Great responses so far and, thanks very much. The more research I do, the more I am realizing that the offer from USAA might not be as bad as my "gut" felt it was initially. I need to remove the emotion from the situation and just ensure that I'm being made whole. Utilizing he 17c method, the first offer was about twice the amount I calculated it would be under that method.

That said, the Toyota dealer I went by this afternoon said that while they'd take it in trade, even with a slight, repaired frame wrinkle, it'd go straight to auction, which would bring their offer down significantly. Practically speaking, it drives better and straighter than it did before the accident.

The 3rd party appraiser I've spoken to seems to be a bit of a scam, so I'm leery there too.

Will keep all apprised of where I end up and what is finally settled upon.