Hi guys.

My nightmare is nearing its end, and my SRT-6 is almost finished at the body shop. I expect it to be finished this week. Here's the problem: I have submitted a diminished value appraisal to Allstate insurance, and am now having a very hard time getting ahold of the insurance adjuster. When I get the call to go pick up my car, there will undoubtably be papers to sign to release the checks to the body shop, that say the insurance company is no longer liable for any further money.

How do I deal with this pickle. The body shop wont release my car without me signing the papers and releasing payment to them...the insurance company is clearly going to stall talking to me about diminished value of my car until my car is done, and I have to deal with signing these papers.

I am sure that the insurance company is not going to pay for the rental car for any days beyond when my car is fixed, so am I going to be stuck with paying for my rental car, while they drag out the diminished value claim portion of the process, and is the poor body shop going to have to wait for payment during all of this? If anyone here knows the insurance business, or has been through this process, please let me know how you would handle this next phase of the fight. Thanks.

 

The diminished claim would possibly only come into play should you want to sell the car. If the car was stolen or needed to be fixed again the company would go by what the value of the car is at the time since as they figure it, when they repaired the car they restored it to what it was before. You may be worrying about nothing.

 

Before the accident, my car was worth $27,721 before the accident. After repairs are completed flawlessly, because of the accident and the stigma that goes with it, the car will now be worth $8,316 less. This is due largely to the fact that this major accident will show on CARFAX reports, and must be disclosed if I want to trade it in, which I would LOVE to do now that its a damaged car that will never be a collector's item. Unfortunately, I can not afford to trade the car in, now that it is worth so much less than I owe on it. I think that is a very real issue to worry about. I expect the insurance company to make me whole. I now owe more on the car loan that the car is currently worth, and since I am not at fault in the accident, Allstate is required to bring me back to pre-accident state, financially.

There is no state insurance law I am aware of that requires me to sell my car to prove loss of value. I have had the car appraised, to establish loss of value. I can even get car dealers to give me trade-in appraisals to show the loss.

The only issue at question is, can I get my car while fighting for this diminished value or does the body shop have to keep it while all this goes on? Can I make the insurance company pay for my rental for the duration of this fight, or will I have to pay for the rental? Anyone know how to handle this?

 

That is a tough one.
I was in a similar situation back in 2002. I had a new 2001 Silverado Z71 and was rear ended at a stop light (by a guy going 35mph reading a map). It had 15k miles on the clock and the Ford Aspire that hit me did ~$6,000 damage to my truck. After I had it fixed by the best place in the area, it was still never the same. I had problems after problems with it and eventually traded it in.

My friend was the sales manager there and he said it would be worth less than one not wrecked, but they were not allowed to go on record saying that. Luckily I got a good deal on the trade since I knew him. There is a pretty famous court case regarding diminished value, but I can't recall the name.

I'd do a bit of research and maybe consult with an attorney.

 

The only people who are qualified to answer your questions are lawyers within your state that handles such issues or the insurance company themselves (which might not be the answer you are after).

 

I talked to the internet sales manager that sold me the SRT-6, and he flat out said, "we'll take off up to $8000 from the trade-in value if its been in a serious wreck." He didn't sound like he had any problem putting that in writing for me. At any rate, if I tell any dealership that I would like to pay for a trade-in appraisal in writing before I start shopping for cars on their lot, and during the appraisal, I fully disclose the wreck and damage, then when they give the estimate in writing, I have my answer as to how much the car has been diminished in value, since I know the appraised value before the wreck.

 

Let your fingers do the walking...

http://www.dora.state.co.us/Insurance/

 

Nice. Thanks for that link. Could come in real handy.

 

My pleasure.

I've used 2 different states' Insurance commissioners offices and had VERY good results. They like to keep things in line for everyone. Insurance companies, by and large, will intimidate their clients as far as they can.
I hate to say this, but I've heard the worst stories about Allstate.

 

Moved to its own thread...

 

If the repairs are satisfactory to you ,suggest to the Ins. co. that you will sign a release which stipulates that you are not releasing your right to pursue a claim for dimished value. If they will not agree to this ,then ask them what they propose so that your car can be returned to you a nd the rental can be ended, without prejudicing your right to pursue the dimished value claim. Put this in the form of a letter to the adjuster, preferably certified, so that if they fail to resolve this with you, the letter will show good faith ion your part in the event it becomes neceessary to pursue legal action.