Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Diminished value claim?

Nov 23, 2020
102
121
Chicago
The problem with this is (assuming you are not at fault) that you enter a contractual relationship with your insurance company. If your policy provides for x days of rental, you may be stuck with your company's limitations.

In my experience (and I am not a plaintiff's attorney), one's own insurance company didn't want to provide the rental for the period necessary to find and obtain a like-replacement, even if the other party was at-fault. And one's insurance company will not be aggressive in pursuing diminished value.

In contrast, directly engaging the insurance of the at-fault driver gives you much more legal leverage if you know what to ask for to be made whole.

FWIW.
When an uninsured driver t-boned my X3, State Farm (my insurer) got me a crappy compact car for a month, and then left me carless for a month because my rental coverage ran out before the repair was complete.

When a well-insured driver t-boned that same X3 a year later, State Farm got the other insurance company to agree to be on the hook for a like rental for the duration of the repair, so I got a midsize SUV for two months.
 

FoxSTL2HOU

Member
Nov 12, 2018
517
304
HOU
Total loss thresholds vary by state. In Georgia the salvage value (likely about 50% of ACV) is factored into the calculation and if it’s cheaper to total the vehicle and resell at auction than pay for repairs, that’s what the insurance company does. I can’t speak for Texas but do know Texas has some crazy total loss threshold like 99%.

The threshold to require declaring a vehicle a total loss in TX is 100% of the actual cash value. An insurance company could choose to total before that threshold. If its a third party claim and you remind them you will be pursuing DV and/or rental compensation, they may lean towards a total.

The problem with this is (assuming you are not at fault) that you enter a contractual relationship with your insurance company. If your policy provides for x days of rental, you may be stuck with your company's limitations.

In my experience (and I am not a plaintiff's attorney), one's own insurance company didn't want to provide the rental for the period necessary to find and obtain a like-replacement, even if the other party was at-fault. And one's insurance company will not be aggressive in pursuing diminished value.

In contrast, directly engaging the insurance of the at-fault driver gives you much more legal leverage if you know what to ask for to be made whole.

FWIW.

For a first party claim (even if they are subrogating against an at-fault third party insurance), correct, they'll give you a rental for the coverage you had on your declarations page and not a day/dollar more (or so said my agent). To get a like-for-like rental, you'd need to have coverage explicitly stating as such called out in your declarations/policy (if its even offered).

It may vary by state, but in mine (TX), insurance will not pursue DV from the third-party company at all (or so said agents from multiple companies).

Rental and DV recovery from a third-party insurance depends on the state and any laws or case law precedent. For my state (TX), DV is recoverable through a civil tort claim, as is the "reasonable rental cost of a substitute vehicle".

When an uninsured driver t-boned my X3, State Farm (my insurer) got me a crappy compact car for a month, and then left me carless for a month because my rental coverage ran out before the repair was complete.

When a well-insured driver t-boned that same X3 a year later, State Farm got the other insurance company to agree to be on the hook for a like rental for the duration of the repair, so I got a midsize SUV for two months.

For the latter case, did you get the rental upfront, or did you pay out of pocket and get the cost back via subrogation?
 
Nov 23, 2020
102
121
Chicago
For the latter case, did you get the rental upfront, or did you pay out of pocket and get the cost back via subrogation?
Got it up front. I don’t know what State Farm did behind the scenes, but one of the many people who called me that day after I initially called them told me they’d reserved a midsize SUV for me from the Hertz location closest to me.
 

mcolonel

New Member
Jul 24, 2021
1
0
Durham, NC
Progressive is crazy. There’s no way that’s only $10k. It’s probably totaled.

If they do decide to fix it and you are going to pursue a diminished value claim, please pm me. Progressive is the absolute worst about DV claims but we successfully won one after a north Texas accident. It went all the way to a jury trial. Our success was largely due to the excellent DV appraisal company that provided the expert witness who testified on our behalf at trial. I can give you all the details.

Progressive is crazy. There’s no way that’s only $10k. It’s probably totaled.

If they do decide to fix it and you are going to pursue a diminished value claim, please pm me. Progressive is the absolute worst about DV claims but we successfully won one after a north Texas accident. It went all the way to a jury trial. Our success was largely due to the excellent DV appraisal company that provided the expert witness who testified on our behalf at trial. I can give you all the details.
Rockster, I'm new to TMC so it looks like I have to earn permission before I can pm you...but a very similar thing has happened to me (a tree fell on my 2021 Tesla Model Y and an estimator is saying $10k in damage, though it looks much worse). I am also pursuing a dv claim and could love any advice you can offer. My insurance Co is Farm Bureau, and they are generally pretty good, but I want to make sure I am getting the true dv in case they try to lowball.
 

thesmokingman

Member
Jun 21, 2021
461
675
Socal
I had an Acura Legend that was hit while parked overnight on the street. Idiot bent down to grab something and rear ended the car. It looked like yours. The Legend was totaled too. When they get rear ended like that it's structural and there's no way in hell they can claim that the car would be structurally sound after repair.
 

IdaX

Member
Dec 27, 2016
430
546
Moscow, Idaho
Rockster, I'm new to TMC so it looks like I have to earn permission before I can pm you...but a very similar thing has happened to me (a tree fell on my 2021 Tesla Model Y and an estimator is saying $10k in damage, though it looks much worse). I am also pursuing a dv claim and could love any advice you can offer. My insurance Co is Farm Bureau, and they are generally pretty good, but I want to make sure I am getting the true dv in case they try to lowball.
Unfortunately your own insurance company won't pay you out Diminished Value. If someone hits you, then it's possible to get them to do so. I got DV on my Model 3 for an accident that was their fault a couple years back. I asked for, and got, the difference in value from kbb.com for a car in "excellent" condition and one in "fair" condition, along with ~$80/day for loss of use (which was considerable given how long it took for them to fix the car!).
 

rxlawdude

Active Member
Jul 10, 2015
3,152
2,621
Orange County, CA
Unfortunately your own insurance company won't pay you out Diminished Value. If someone hits you, then it's possible to get them to do so. I got DV on my Model 3 for an accident that was their fault a couple years back. I asked for, and got, the difference in value from kbb.com for a car in "excellent" condition and one in "fair" condition, along with ~$80/day for loss of use (which was considerable given how long it took for them to fix the car!).
Always best to go after the at-fault driver's insurance rather than dealing with your own because of this issue with both DV and rental car during repairs.
 
  • Helpful
Reactions: IdaX

Canefan456

Member
Sep 26, 2020
114
131
Atlanta
I just went through a very similar experience with my 2017 Macan S. Rear ended at a stoplight...damage did not look that bad until they tore into it. After three months and nearly $20,000 in repairs, we got the car back looking like new. The other driver had Geico insurance and they paid for every cent of the repair including an SUV 3 month rental. Once we got the car back, I hired an independent appraiser who worked up a diminished value report that concluded we lost $5600 in value. Submitted that to Geico and they came back with $4k. I then said $5400 and we settled at $4700.
 

rxlawdude

Active Member
Jul 10, 2015
3,152
2,621
Orange County, CA
Not worth it. At $400-$600 /hr. Between the back and forth with the insurance company you're looking at $5-$6k minimum in lawyer fees for what?
I have fought and gotten about 10% in diminished value but you have to keep fighting them.
There are non-attorney experts that cost much less than this, who can successfully obtain DV settlements exceeding your claimed "minimum" for lawyer fees.
 

Products we're discussing on TMC...

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top