Diminished Value/Estimate for Car Repairs

[abaga]

What is the name of your state? GEORGIA

I was involved in an accident in which I was rear ended. The visible damage estimate was for ~600.00. I'm told once they get under the bumper cover, there will probably be another 400.00 in repairs. When I was hit, I only had the car for six days (had 130 miles on it...brand new).

In GA, I know there is a law on the books that pays the owner of the vehicle for the diminished value of the automobile after an accident. When discussing this with the Insurance Adjuster, his response was, "Well, not all cars have diminished value after an accident, so we don't have to pay you." I said, "My car was six days old when your insured hit it, and has enough damage that when my VIN is pulled up, it will register (I think any damage over 300.00 comes up)." His response to me was, "Yes, you told me it was a new car. I can see that for myself!"

Is it true they don't have to pay me for diminished value?

They also want me to go to a Toyota Dealership to have my Honda repaired. I told him that wasn't going to happen. I was going to take it where I felt comfortable. He told me they would have to work from the estimate at the Toyota Dealer! Ummm, as I said, this is a HONDA, NOT a Toyota!

Thank you!

 

[tammy8]

You lost more than a $1K in value when you drove off the lot. And $600 is just a scratch. Be glad that you got that fixed and go on.

 

[abaga]

You lost more than a $1K in value when you drove off the lot. And $600 is just a scratch. Be glad that you got that fixed and go on.

No, it isn't "just a scratch." They know there is more damage underneath, but can only write up what can be seen visibly. You can see the material underneath protruding, but the Insurance Co. won't allow for them to write that part up until they remove the bumper cover.

Just out of curiousity, are you an attorney or do you represent an insurance company?

 

[stephenk]

It all depends on the type of damage to the car. If it is just sheet metal and plastic there really isn't any diminished value to your car.

If there is frame damage you may have a claim. But that would also depend on the nature and extent of the frame damage.

Finally, it would be up to you to prove the value of your car has diminished. A $1k in damage to a 2005 model car is really minimal. When and if you sell the car in 5 years, this accident may not affect the car's value at all.

 

[abaga]

It all depends on the type of damage to the car. If it is just sheet metal and plastic there really isn't any diminished value to your car.

If there is frame damage you may have a claim. But that would also depend on the nature and extent of the frame damage.

Finally, it would be up to you to prove the value of your car has diminished. A $1k in damage to a 2005 model car is really minimal. When and if you sell the car in 5 years, this accident may not affect the car's value at all.

Thank you, Stephen! I appreciate the time you have taken to explain this to me.