electech wrote:Never heard of "diminished value" check before!! I did feel like taking a little value out of his head though! Fortunately for him, he sat and listened without opening his mouth except to say "yes sir" which was a good thing for him. Luckily, it is a minor hit and hopefully just a bumper cover will be all it needs.
Neither had I until recently, and now both my wife and I are pissed that our insurance company didn't give us one.
"Diminished value" works similarly to the principal of totalling. When your car is totaled, the insurance company is supposed to pay you the amount it would cost to REPLACE your vehicle (with like year, condition, mileage, options, etc.) minus your deductible. When you have your car repaired, the company pays for your repair minus your deductible. Well, here's how diminished value works:
My wife's truck, a couple months ago, low-booked at $13,000.We were offered only $7500 by the dealership because we were honest and disclosed the accident, even though Carfax showed a clean history (read a detailed Carfax report sometime... they are SUPPOSED to notify you of three different categories of collision: minor, moderate/severe, and totaling/salvage)Even after arguing with the dealership over value, we weren't able to get them to go above $10,000... so we walked (this was over an Escape Hybrid we wanted to buy).
So there is an example of what diminished value translates to in the real world. There is $3000 that we SHOULD get if the vehicle had never been in an accident that we will NEVER get because it has. Our insurance company should have cut us a check for an extra $3,000.
We didn't know about this at the time, and the case is already closed, so we can't pursue it.