Diminished Value Claim - Still Possible If Person at Fault Pays For Damages?

[Pkmmte]

I was charging my car when another car (a Model X) pulled in then out of the parking spot next to me. Upon pulling out, they made a sharp right turn which ended up damaging the front of my vehicle. The front driver side bumper cover is damaged (significant), left headlight has some scratches (minor), and the panel between the driver's door and bumper cover (fender?) is (slightly) damaged.

The person admitted complete fault and we've already filed an insurance claim with their insurance company. However, she is asking if I'm okay with them paying for the damages so that their insurance rates don't go up. I was considering selling my Model 3 sometime later this year, so I'm concerned about diminished value and whether or not I can still file for it with their insurance if I do accept their offer to pay for the damages directly. I've never filed a diminished value claim before. The only claim I've ever filed for this Model 3 was for paint damage someone else caused, which was only $800, and I never filed a diminished value claim for. (Should I?)

Should I take up their offer to pay directly? Would their insurance refuse to pay for diminished value if I do so? She wants me to assess repair costs first, how do I even do that when the adjustor wants me to make an appointment at my local Tesla Service Center to assess repair costs?

I have photos and a dashcam video, if that's of any use.

#completenoob

 

[kev1n]

i would say if they are willing to pay for the damages out of pocket, then let them pay for it and make sure to get a good shop.

if done correctly, this should look brand new before the accident so there is no diminished value if you ask me since its all cosmetic anyways. if repaired correctly, no one will know this ever happened and its not going to be on any carfax.

 

[voip-ninja]

I was charging my car when another car (a Model X) pulled in then out of the parking spot next to me. Upon pulling out, they made a sharp right turn which ended up damaging the front of my vehicle. The front driver side bumper cover is damaged (significant), left headlight has some scratches (minor), and the panel between the driver's door and bumper cover (fender?) is (slightly) damaged.

The person admitted complete fault and we've already filed an insurance claim with their insurance company. However, she is asking if I'm okay with them paying for the damages so that their insurance rates don't go up. I was considering selling my Model 3 sometime later this year, so I'm concerned about diminished value and whether or not I can still file for it with their insurance if I do accept their offer to pay for the damages directly. I've never filed a diminished value claim before. The only claim I've ever filed for this Model 3 was for paint damage someone else caused, which was only $800, and I never filed a diminished value claim for. (Should I?)

Should I take up their offer to pay directly? Would their insurance refuse to pay for diminished value if I do so? She wants me to assess repair costs first, how do I even do that when the adjustor wants me to make an appointment at my local Tesla Service Center to assess repair costs?

I have photos and a dashcam video, if that's of any use.

View attachment 369170

#completenoob

My experience with making diminished value claims is that it's a PITA. The last time I dealt with this was when my wife's vehicle was rear ended by an uninsured motorist. Our insurance stepped in and paid for the vehicle repairs but immediately backpedaled when I insisted that we get compensation for reduced value of the vehicle since it will show a $3,000 repair on CarFax.

Ultimately we got stiffed since it turned out that our uninsured motorist coverage does not cover things like diminished value.

The Model 3 is too new to know how much diminished value it has but there's probably some rule of thumb out there like 50% of the cost of the repair in impact to the car resale.

Then there's the whole issue of how long you keep the car, selling outright vs trading it in (where minor collision damage is probably less of an issue), etc.

I think you've got about a $3,000 repair there, so I'd hit them up for $1,500 in reduced value. You could also ask your insurance agent what they think you should ask for (if anything).

Good luck strange kitty cat person.

 

[MP3Mike]

If they are trying to avoid their insurance then they would need to pay the diminished value as well as the repair costs. (i.e. you wouldn't even file a DV claim.)

You just have to pay a DV expert to give you an estimate and then negotiate with the at-fault party. (Which can include the cost of getting the DV estimate.)

They will probably quickly change their mind and tell you to go to their insurance. (Unless they are at risk of losing their insurance with another claim.)

 

[IdaX]

Hate to see this kind of Tesla-on-Tesla violence.
If they don't file an insurance claim, though, then the accident might not show up on CarFax and therefore wouldn't diminish the value...

 

[voip-ninja]

Hate to see this kind of Tesla-on-Tesla violence.
If they don't file an insurance claim, though, then the accident might not show up on CarFax and therefore wouldn't diminish the value...

It potentially shows up when the reputable shop does the work.

 

[MP3Mike]

Hate to see this kind of Tesla-on-Tesla violence.
If they don't file an insurance claim, though, then the accident might not show up on CarFax and therefore wouldn't diminish the value...

Up until you try to trade it in and they pull out their paint thickness meter to check and they say hey the front corner of the car has been repaired.. Was it in an accident?

 

[Knightshade]

Up until you try to trade it in and they pull out their paint thickness meter to check and they say hey the front corner of the car has been repaired.. Was it in an accident?

FWIW when I traded in my previous car for my Tesla they didn't do anything like that at all (neither did carmax when offering a quote on same).

 

[CFrolander]

I did a DV claim on my Model X that was in for some $24,000 in repairs (Slammed into from the side on the freeway, needed pretty much a new passenger side) and it was a bit of a process. I ended up having someone experienced prepare it and it was $400 out of my pocket just to do that, and I can't imagine your DV claim being more than $1,000 as it looks quite cosmetic (Mine was very very structural). If it were me, I wouldn't worry about a DV claim with that sort of damage. I wouldn't hesitate buying a car for full price that's had that damage repaired properly, and I doubt you'll lose much (if any) actual value on resale.

 

[MP3Mike]

I did a DV claim on my Model X that was in for some $24,000 in repairs (Slammed into from the side on the freeway, needed pretty much a new passenger side) and it was a bit of a process. I ended up having someone experienced prepare it and it was $400 out of my pocket just to do that, and I can't imagine your DV claim being more than $1,000 as it looks quite cosmetic (Mine was very very structural). If it were me, I wouldn't worry about a DV claim with that sort of damage. I wouldn't hesitate buying a car for full price that's had that damage repaired properly, and I doubt you'll lose much (if any) actual value on resale.

So what was your DV claim for the $24,000 in repairs?

 

[Goosby]

I did a DV claim on my Model X that was in for some $24,000 in repairs (Slammed into from the side on the freeway, needed pretty much a new passenger side) and it was a bit of a process. I ended up having someone experienced prepare it and it was $400 out of my pocket just to do that, and I can't imagine your DV claim being more than $1,000 as it looks quite cosmetic (Mine was very very structural). If it were me, I wouldn't worry about a DV claim with that sort of damage. I wouldn't hesitate buying a car for full price that's had that damage repaired properly, and I doubt you'll lose much (if any) actual value on resale.

I recently went through the process of selling my car that had minor paint damage, which was professionally corrected, but because CarFax showed it was involved in an accident (a term CarFax uses very loosely) it was incredibly annoying to sell, with many folks turning away immediately and others offering insultingly low prices. I agree with you that the damage OP has is minor and shouldnt impact resale value at all; however, when CarFax shows an accident most people immediately imagine a crumpled car on the side of the highway and don’t want anything to do with it unless they get it for a steal. This is a personal annoyance of mine, but the sad part is people can easily hide damage from CarFax and sell the car as “accident free” while those of us who have it professionally repaired end up getting screwed on resale.

As for the OP, if you are inclined to help the person who hit you out, I’d recommend going to the most reputable shop in town and get a quote and add at least 50%-75% for DV. If the person balks at the number then get insurance involved to fight it out. Either way, make sure you take lots of before/after photos of the damage/repair (or get photos from the shop) for your records.

 

[mswlogo]

If they are willing to pay direct, I'd definitely go for that. As soon as either side insurance gets involved then it could end up on Carfax, regardless of the liability or outcome.

But be careful. I've had situations where they say they will, then they find out the amount and change their minds.

Both sides would benefit for doing this without insurance. It's not enough damage to bring them in.

 

[voip-ninja]

If they are willing to pay direct, I'd definitely go for that. As soon as either side insurance gets involved then it could end up on Carfax, regardless of the liability or outcome.

But be careful. I've had situations where they say they will, then they find out the amount and change their minds.

Both sides would benefit for doing this without insurance. It's not enough damage to bring them in.

Yeah, I'm generally not a fan of letting the other guys pay out of pocket.

Our nanny got rear-ended in our SUV a few years ago and the damage looked pretty minor (busted inset on bumper cover and a parking sensor). The other party pleaded for us to let them pay out of pocket, apparently it was their 2nd accident in a short amount of time and they were worried about getting dropped from their insurance or having to pay exorbitantly to switch carriers.

So we say "sure". Car goes in and gets an initial evaluation of $900 for the repair. Then they start working on it and find that the impact that dislodged the bumper cover insert also scraped a little bit of paint off of the rear body and that should really get re-painted, now the repair is up to $1700. Then the parking sensor guys remind us that we had the parking sensors installed aftermarket so they will have to do a full re-install on the new bumper insert, so now we are up to $2100.

Then tack on another $250 for the use of a rental for a week.

My wife kept all the receipts and kept in touch with the other party who continued to tell us no problem they will pay.

Then when the work is done my wife sends a text with the total out of pocket and the person disputes it. My wife laboriously goes back through the numbers and shows them they don't know how to use a calculator. They relent and send a check, all of this takes 2-3 weeks and it's getting close to Christmas. We have now been floating a $2350 repair for close to a month.

Their check arrives and when my wife goes to deposit it there are insufficient funds, so they wrote us a bad check. My wife contacts the other party again and says 'if you don't pay this promptly I am engaging your insurance company'. They complain that we are assholes as it's close to the holidays.

Waaaa.

They write another check and finally we are made whole.

We spent hours dealing with BS that we never would have if we had just gotten their insurance company involved and made them deal with it.

NEVER AGAIN.

 

[SeanM]

In my opinion, IF IT'S NOT YOUR FAULT... I would always suggest to go through the Insurance companies.

You pay them for such instances/issues, let them go through all the 'headaches', they are professionals, while you can completely concentrate on your car's repairs, thanks.

 

[Az_Rael]

FWIW when I traded in my previous car for my Tesla they didn't do anything like that at all (neither did carmax when offering a quote on same).

I have had Carmax check for paint thickness on a car I was selling them before. They found a bumper repair from when I had been rear ended, but that wasn't in the Carfax.

 

[CFrolander]

So what was your DV claim for the $24,000 in repairs?

The claim I submitted, as prepared by the company who does this, was about $20k DV. The other driver was just covered to state minimums which is $10k. I was initially offered pretty much a 50/50 split from their insurance so I'd get $5k and my insurance (State Farm) would get $5k. Unexpectedly, my insurance company waived their right to subrogation at that point and allowed me the full $10k claim. State Farm was super awesome though the whole process, and the company who prepared the DV claim made it so I just had to send the paperwork to their company and it was all taken care of. I used Collision Consulting - Diminished Value Claim Assistance - Automobile Insurance Claim Help which I was referred to by someone in these boards so they get my recommendation too if you do end up feeling a claim

 

[mswlogo]

In my opinion, IF IT'S NOT YOUR FAULT... I would always suggest to go through the Insurance companies.

You pay them for such instances/issues, let them go through all the 'headaches', they are professionals, while you can completely concentrate on your car's repairs, thanks.

If it’s under $5000, I would NEVER call any insurance company. No matter who pays for it.

I had someone hit my mirror, head on, 40 mph because they were texting and veered into my oncoming lane.

Called police because I thought they might be drunk. $1200 damage. He admitted to police he was messing with his phone. His insurance covered it 100%.

My total cost. $7,500.00.

Traded in next year. Lost $5000 in trade in value because carmax ding. Later change insurance company. I had an accident on my record. Does not matter how large the accident is of who’s fault. $500 more for 5 years. There are no “points” on my record.

I never should of called the police. Waved goodbye to the texting idiot and paid for it out of pocket. It sucks and that’s just how it is.

It’s not worth it unless it’s at least $5k. You can fight for lost value. Good luck with that.

 

[MP3Mike]

The claim I submitted, as prepared by the company who does this, was about $20k DV.

So the DV was 83% of the repair cost. Wow, I've not seen it that high before...

 

[Knightshade]

I have had Carmax check for paint thickness on a car I was selling them before. They found a bumper repair from when I had been rear ended, but that wasn't in the Carfax.

Must vary by location- they sure didn't do that with mine (and both front and rear bumper covers had been replaced on the car- but carfax was entirely clean)

 

[Dana1]

I was charging my car when another car (a Model X) pulled in then out of the parking spot next to me. Upon pulling out, they made a sharp right turn which ended up damaging the front of my vehicle. The front driver side bumper cover is damaged (significant), left headlight has some scratches (minor), and the panel between the driver's door and bumper cover (fender?) is (slightly) damaged.

The person admitted complete fault and we've already filed an insurance claim with their insurance company. However, she is asking if I'm okay with them paying for the damages so that their insurance rates don't go up. I was considering selling my Model 3 sometime later this year, so I'm concerned about diminished value and whether or not I can still file for it with their insurance if I do accept their offer to pay for the damages directly. I've never filed a diminished value claim before. The only claim I've ever filed for this Model 3 was for paint damage someone else caused, which was only $800, and I never filed a diminished value claim for. (Should I?)

Should I take up their offer to pay directly? Would their insurance refuse to pay for diminished value if I do so? She wants me to assess repair costs first, how do I even do that when the adjustor wants me to make an appointment at my local Tesla Service Center to assess repair costs?

I have photos and a dashcam video, if that's of any use.

View attachment 369170

#completenoob

Technically, in a lawsuit, you are suing the person not their insurance company. Insurance sends the lawyer, negotiates settlement, etc.