How much was the repair bill ?


(repair bill) xxxx.xx + 4,800 = ???? (GRAND TOTAL damages)

 

Keep in mind that I am in the very early stages of what I expect to become a lawsuit filed by us against the other driver's insurance company (and by necessity according to our state's laws, against the other driver himself). For that reason, I have said all I am willing to publicly say regarding costs at this time. Once the case is settled, I will be willing to go into greater detail. That could be months away. Until then I'll talk about process, I'll report the case's status, but I won't discuss costs. Sorry....

 

Well that's certainly fine. The reason I ask is because I have owned and operated a collision repair business for over 23 years, in the Chicago suburbs of Indiana (NOT Illinois ).


I'm not certain that MY state law, recognizes a theory of diminished value.


Routinely, the mathematical formula used by most major carriers results in the car being totaled when the repair costs reach 70-80% of value....


My concern is if diminished value claims are added to the formula, MANY more vehicles may be deemed "Totals", thus leaving fewer vehicles to be repaired (which is my livelihood)....

 

In North Carolina, the threshold for totaling the vehicle is 75%. In other words, if repair costs are anticipated to be more than 75% of the pre-accident value of the vehicle, then the insurance companies here typically total the vehicle....

I would not be concerned about Diminished Value claims impacting your collision repair business. Here in North Carolina, the owner must have the vehicle fully repaired before he/she can pursue a Diminished Value claim. That is because the Diminished Value appraisal cannot be conducted until repairs are made and the vehicle is back in possession of the owner....

The vast majority of owners have no idea about the concept of Diminished Value. For those of you who live in states where Diminished Value is allowed, I highly recommend that you familiarize yourselves with your local laws regarding it. If and when someone else hits you, you'll be much better prepared to pursue your claim....

I took my S-Type Diminished Value small claims court award in early 2010 and deposited it in my vehicle repairs & maintenance fund (a money market account that I've kept for more than twenty years in our local credit union). I still have much of that 2010 award available to me today. I'll do the same with whatever amount we are awarded in my current XK8 Diminished Value case. It's great to keep a rolling balance of $3,000 to $6,000 available at all times for whatever repairs and maintenance needs pop up on any of our three vehicles. My wife periodically attempts to get me to blow those funds on exotic vacations but she knows that ain't gonna happen. As our two Jaguars continue to age and roll up the miles, you just never know what expensive repair bill may be lurking around the corner....

 

I'd love to know what the formula is that's used to arrive at the DV amount.

 

So would I, but it is proprietary and my appraiser will only tell me that he gathers data from across the country on similar vehicles that have been wrecked and repaired and runs that data through several algorithms that are formulated for our specific geographical area. My guess is that the process is relatively simple for a BMW 5-Series or a Mercedes E-Class because there are tons of them out there on the road. An XK8 Victory Edition is more challenging because only 1,050 of them were shipped to the U.S. So he had to work quite a bit harder than usual in order to come up with an accurate Diminished Value number that can be justified in a court of law....

 

Update:

I called Allstate's customer support center late yesterday afternoon to ask if they had received my Diminished Value claim package that I mailed to the appropriate address on July 26th. They have indeed received it, but my case has not yet been assigned to a representative. I was told that this process typically takes two to three weeks and to expect a phone call for an initial discussion at that time. As I expected, they appear to be in no hurry to respond. Stay tuned....

 

Customer Support Centre application of Rule 1: if we delay, many will just go away.

I don't expect they'll be used to dealing with someone who has the determination of a Rottweiler.

Graham

 

Tell the lil lady that suv are not as safe as many think... big doesn't equate to safe. They have high frontal impact ratings but are behind cars in overall safety. Including the highest death rates in roll over accidents and are the leaders in roll overs.
Keep the Victory Edition...

Hey good luck on the finished value claim and keep us updated!

 

I have to say that this whole DV thing frankly looks like, if abused, can be considered in the same category as collateral complaints related to slip-and-fall situations (emotional distress, loss of consortium, etc.) or borderline frivolous suits. I can see if you have some Lamborghini that you are intending to keep for a short while before selling that having repairs from an accident could reduce the value of the car by tens of thousands.

But if I have a vehicle that I intend to keep for some time that is something other than a real classic (at least in my lifetime) and all repairs were done to my total satisfaction and I was compensated for any other legit out-of-pocket and hassle, that would be fine for me.

Sorry to possibly cause controversy but that's the way I see it.

Doug

 

Doug - I'd never heard of the Diminished Value concept before reading this thread, but it makes perfect legal and moral sense to me. The potential resale value of a car is reduced by such an accident, whether it's sold today or ten years from now. Wouldn't you rather be able to sell a car for $20,000 vs. $16,000? Yes, as time goes on, the value of the car will likely go down and so would the the effect of the DV, but that is no reason to not make a DV claim now; you can't make it at time of resale. Keep any car long enough and its value will start to rise again, although maybe not within your lifetime. You really can't compare a DV claim to a fraudulent (I assume) slip and fall suit. The accident happened, the fall was staged. It's unlikely the appraiser, the insurance company and the court would allow the concept to be abused.

 

SeismicGuy,

Sorry pal, but I don't waste my time or anyone else's time with fraudulent activities. If you're willing to take a significant financial loss due to circumstances of carelessness caused by others, that's your prerogative. Not a very wise prerogative in my opinion, but a prerogative none the less....

 

I appreciate valuation, insurance coverage and claims procedures are very different across the World but some basic parameters are universal.

The highest value example of any model has to be:

1. original spec
2. one owner
3. low mileage
4. full service history
5. no accident damage
6. unblemished bodywork and interior

The XK8/XKR is not a high value 'collectible' but changes in any of the above will impact the market value. If there is a procedure for assessing and recovering any decrease in value following an accident then it is only sensible to make use of it.

Graham

 

and to Jon. Owning a body shop in AZ I can tell you that here there is no set dollar amount as to a total. Ive had a 2013 Durango (in 2013) totaled at 50% of value (23K repair on a 45K vehicle) and I have seen a vehicle NOT totaled at 90% of value which we ended up repairing. The insurance industry and each company itself has there own way of valuating the total.


Repair vs total can involve, current salvage values, how long it may take to repair the car and the cost of the rental for say 25-30 days, possible supplements that could total thousands and might not be known until the repairs have been started.


Also, in AZ, DM is based on so many things I have seen a customer with a 3 year old car not get anything and one with a 5 year old get way more than I thought they should get. Jon, given the year of the car, common wear and tear and such I hope you get satisfaction but if you lived in AZ I would doubt you would end up with anything.


Keep us posted.

 

I wish the name of this thread would change. Maybe to "Deminished Value" or something similar. I'm getting a little tire of seeing "My Wife Got Hit Today"

Not to be a sour head, but the subject has changed a long time ago.

Chuck
XK8 Conv.

 

John Fox,

Thanks for your input....

I went through the Diminished Value process nearly five years ago with my 2005 S-Type after it was front-ended by a careless driver. While it took several months from start to finish due to insurance company stalling tactics, I had bulletproof evidence, I proved it with proper documentation and expertise, and I won my case in relatively short order once we finally got to court....

I "went to school" on that case and am using the same strategy this time around with my wife's car. My initial experience taught me where I can streamline and where I need to focus. As a result, I can greatly economize my time and effort on this case compared to my initial case....

Every situation is different, every judge is different, but nevertheless I expect a similar outcome. We'll see....

As a number of you have requested, I'll keep this thread updated as the situation progresses, and I'll try to be concise about it. Anyone who disagrees with the Diminished Value concept should simply stay out of the thread and not waste our time....

 

Of course there are a lot of things that make perfect sense but it strikes me as symptomatic of going from the days of "stuff happens/deal with it/ move on" to the current philosophy of "stuff happens/who else can I blame/who can I sue/how can I benefit".

It's just that there is not way for this particular car that there is truly a $5K hit just because you had an accident. Basically this is like found money that the system has rewarded you with--like the bucks paid to make nuisance law suits go away. Congrats--you gamed the system.

Doug

 

Wish I could make a diminished value claim against myself but sadly I got hit by a POS on my motorcycle 19 months ago who had state minimum insurance. Just had surgery number 10 and not close to being done but sadly the rules favor saving property rather than people, It makes me sick that you can sue for loss of possible value in the future but yet I can't sue for the reality that my daughter has a father who is 50% of what he once was and has nobody to sue.

 

Actually I think you can file a personal injury claim against the POS that hit you however as the saying goes ya can't get blood from a turnip! Motorcycle's being hit by cars are a personal sore spot with me, as a fellow MC rider I hope you heal well with time and I'm sure you will be able to be the father your daughter deserves regardless of your injury.

 

SeismicGuy,

Have you taken the appropriate Diminished Value classes in North Carolina? Have you obtained certification and licensing in the Diminished Value process in North Carolina? Have you studied the North Carolina laws as they pertain to Diminished Value to ensure that your actions are always legal and appropriate?

The answers are no, no, and no. Essentially you're just another uninformed yokel spouting nonsensical, biased opinions that have nothing to do with the facts and the law. Others have made efforts here in this thread to explain to you why this concept is pertinent and appropriate. Your response is to keep typing your gibberish. I now have you set on permanent "ignore"....