lost value compensation

My 04 996 cab was recently hit in the left rear quarter panel....damage estimate is 3900.00. I understand that I am entitled to lost value compensation i.e. if the car were sold how much less than the current market value would I have to discount the selling price because of the damage/repainting. Does anyone know the best method to obtain this figure? I know that I can take the car to my dealer and get a written estimate. Are there any articles or documentation that I could access that would help me to arrive at a figure? Thanks....

Diminished value must be determined on a case by case basis. I'd start with your Insurance company and get their feedback. Then I'd discuss it with the other guy's Insurance company. They may have a specific process for determning dimished value. One of my friend's at work received a sizeable check for dimished value for her '03 530, but her car was nearly totaled.

If you think your standard auto insurance policy will provide coverage for diminished value (or lost value), it's probably unlikely. Check your policy, but most of them will cover you for the cost of repair or replacement, whichever is cheaper, and at their sole and exclusive discretion. You may get a break if they view you as a good customer, etc., but it's pretty much luck of the draw. There have been several class action lawsuits brought against various insurers (including a recent one against State Farm in downstate Illinois, but Allstate's been sued, as well). The premise of these lawsuits is that the car's value has been diminished because of the fact of the damage, irrespective of the repair quality, because even if the car has been properly repaired with OEM parts, the car is no longer in pristine or straight-from-the-factory condition. Because of the spate of lawsuits for diminished value, many insurers have included specific exclusions in their policies limiting their liability. Check your policy. If your insurer is giving you a hard time about whether or what it's responsible for, you can threaten to file a complaint against them with your state's insurance regulatory commission. The better, i.e., more reputable, insurers really don't want these complaints on file, which they view as black marks on their reputations. I had pretty good success this way after someone hit my car and the insurer wanted to lowball me. The best way to make sure you prevail is to document everything with a follow-up letter, explaining your position, what they said to you, why you agree or disagree, etc. If you've got a paper trail to show how reasonable you're attempting to be, you'll have a better chance of prevailing. Good luck.

but its really the "other" person's insurance policy that will have to pay right? and in that case you are not subject to any restrictions the other person has signed to... or are you? this sounds like a grey area....

The reason I suggested contacting your own Insurance company was for guidance as to the process for collecting diminished value. The compensation will of course come from the other guys Insurance company. When I was shopping for a 996, I saw several cars that had minor body damage on dealers' lots but weren't repaired. The salesmen told me that they wanted the prospective buyer to see the minor damage before it was repaired. Hence, it appears that Porsche dealers are very aware of dimished value. Again, as to how much less tha car will be worth is hard to determine. I'd imagine car appraisers in your area would be in the best position to answer that question. Also, it wouldn't hurt to take lots of pictures of the damaged area and a copy of the repair bill for future buyers to examine. Based on the dollar amount, it doesn't sound like your car was badly damaged.

I'd check with some body shops. My body shop gave me the name of a independent company that came to the house and provided a report outlining the value and how they arrived at the number; simular to a real estate "comps" report. I paid for the report but it was helpful in obtaining a settlement. Roy

Think about it: if your own insurance company is shorting you with respect to the compensation you're receiving in connection with your accident (this is what the class action plaintiff policyholders were claiming, i.e., that the amounts offered did not include an additional bump, over and above the cost of repair, for the lost value of the vehicle because it was no longer in pristine condition), why would someone else's insurance company pay you that additional sum when you're not even their client? With your own insurance company, you're paying regular premiums, you probably have more than one car insured through them, and you may even have your house insured through the same carrier. Your own insurance company is making money off of you (nothing wrong with that, it's a business, after all). Now you're in an accident, perhaps it's even the other guy's fault. What happens is that your insurance company fronts the repair payments, and then it goes after the other guy's policy for reimbursement. So, . . . (1) because you're trying to recover from the other guy's insurance company, you're in an adversarial position with respect to the other guy's carrier; (2) you have no ongoing business relationship with that other carrier and have no reasonable likelihood of establishing an ongoing relationship with them (after all, they're not trying to sell you a policy, they're just trying to settle your claim); and (3) you're asking them to pay out what's likely to be a substantial sum of money. Therefore, (4) why would they give you anything more than what they would give their own client? They won't. Go back and read your own policy to see what they'll cover. I'll bet you a dollar right now that if it's been amended in the last three of four years (and there generally are yearly amendments), there's now a specific exclusion for lost value or diminished value, i.e., they expressly don't cover it, and will only cover the cost of repairs or replacement, whichever is cheaper, at their sole and exclusive discretion. Same with the other guy's insurance: they're not going to pay you anything that they don't have to pay their own guy, and whether or not he caused the accident (or even if you caused the accident), his own insurance company is not going to compensate him for the diminished value of his vehicle. You might be able (prior to the accident) to take out some sort of specialty insurance on a collectible or antique car, but if you're using it as a daily driver (or likely anything other than a museum piece) you'll pay extortionate rates that are likely to exceed the cost of any damage you're likely to encounter. Good luck

Because in some states, like Georgia, the law states that insurance companies must pay deminished value. It's the law...

You're right, insurance coverage is a state-by-state issue. That's why I suggested he read his policy to see what's covered and what's not. The fellow who started this thread appears to be from Mississippi, not Georgia, so it's not clear (even if it's true that in Georgia, insurance companies must pay diminished value) that Georgia insurance regulations or case law precedent would have any relevance. Check your policy. Check your policy.

It seems that in Mississippi according to the law the....the person's car which has been damaged is entitled to: 1. Cost of repair 2. Loss of use( what it would cost you to rent a vehicle like the one you are driving while the car is out of commission/repair) 3. Depreciation(i.e. lost value compensation...the real depreciated value of the vehicle that you would have to sell the car after disclosing that it had been damaged/repaired)....I am sure that the insurance companies do not want to here this but here in Mississippi that is the law...I have consulted my attorney and these are the facts......Remember that this is not my company that insures my car but the company that insures the person who caused the accident ...this is the person who is liable and responsible for the repair and therefore since this person is insured by there company then the insured's company is liabel ....Dr. Z

Actual accident, state of GA. I work for a large company with vehicle flleet. One of my employees hit a guys car that had been purchased that week, less than 500 miles on the clock. 7800 in damages to repair. The guy demanded a new car...and rightfully so, in my opinion. Our legal refused, offerred him 1500 in diminished value. The guy sued and "WON". He received very near the original offer of 7800 in repairs and 1500 in diminished value, minus his attorney fees, because his insurance company had no dog in the fight. Even in states where diminished value claims have not been removed from policies, the laws aren't pro consumer. Diminished value is determined by appraisers, who generally receive their bread and butter from insurance companies.