Need Diminished Value Advice

[Rahul]

On 4/12/19 a drunk HS girl drove into our 2017 X 100D:



It took 3.5 months and $23K to repair.

My appraiser came back with a DV estimate of $23.5K.

Her insurance, American Family, said their independent appraiser came back with an estimate of $646 which is utterly laughable. However they said in spite of that appraisal, they will offer $5200 which also is not enough compensation. $5200 is not going to cover the hit I would have to take if I need to sell this vehicle with this accident history.

Any advice on where to go from here?

 

[NoSoup4U!]

You’re way too far apart to expect them to ever come close to what they owe you. I’m afraid you need to engage an attorney in this. Even with his/her 15-20% fee you’ll come out ahead. Insurance companies in this country are something else...

 

[Rockster]

Yep. Attorney. Preferably one who deals with DV claims.

 

[Akikiki]

DV is a topic that appears every few months on TMC and TM. I clicked this first snap of info from TM in Feb '19. You can see the date on the second. I didn't want to alter the wording so it's not taken out of context. I hope this helps you. Keep us posted.

I'm wondering that if you took your X to the local Tesla store and asked for difference of trading your in, if it would help you establish the DV.

If interested give a call to Arlene at 561 640. 3555 and explain your situation. It sounds to me like you have a meritorious claim.
Diminished Value + Loss of Use in Florida | Tesla

SCCRENDO | January 2, 2017
@krina.reineke. This is who I used. Cost me about $500 for the 2 reports. Can just get 1 if you want. Great reports. Franklin is the guy. Very helpful and will advise you over the phone.
THE ST. LUCIE APPRAISAL COMPANY
PO BOX 2700
FORT PIERCE, FL 34954
Phone: 772-359-4300
Fax: 772-466-8400
Email: [email protected]

More info:
HELP, how to claim vehicle diminishing value after the an accident in CA. | Tesla

 

[Rahul]

@Akikiki thanks for the tip. I saw that post when I was evaluating appraisers, I checked out St Lucie, Petty Details, and Collision Consulting. Went with Collision Consulting based on local references. I'm still working with them on advice but thought I would reach out here for additional thoughts.

Will keep everyone posted.

 

[OrbiterTI4]

Find an attorney familiar with your state's DV and Loss of Use laws (and court precedents). Has your DV appraiser worked with any in the past?

Expect the attorney to take 1/3 of the settlement/judgment, with fees coming out afterwards. Expect the process to take a year or more. As such, if you were awarded a full judgment of $23.5k (unlikely, but lets use it for example), you'd net $14k or so. Is the extra year of hassle worth an extra $9k over the walk-away offer today? Probably, but you'll have to make that decision.

 

[Hebert]

The couple of times I have been hit by another car, I just called my insurance company and gave them all the details. I was not at fault either time. Their lawyers handled these negotiations for me and it did not go on my record or cost me a dime. One if the cases was contested all the way to some sort of arbitration which the other insurance company lost. Pemco rocks!

 

[MyWifeandI]

What methodology does Collision Consulting use? If the report says "proprietary algorithm" the insurance adjuster will likely disregard it. An appraiser needs to show how they came up with their figures. And if that appraisal company actually picks up the phone to call sales managers at new car dealerships, that diminished value report can't mask the dealers' identities. In both cases it may be argued that their numbers were made up.

 

[Rahul]

After a few rounds, the last is that American Family has offered $8K all via email. They have said their final offer and I can proceed however I want if it's not acceptable. So I am definitely looking into an at going with an attorney. Collision Consulting has sent some recommendations. Will take other recommendations if anyone has a good experience with this sort of thing in the Phoenix area.

Thanks!

 

[pereiks]

I wonder why didn't you go with claim to your insurance?

 

[Rahul]

My understanding is that you have to go after the other drivers ins co for DV.

 

[MyWifeandI]

My understanding is that you have to go after the other drivers ins co for DV.

Yes, that is correct. You can file a third-party auto diminished value claim with the insurer of the responsible party but not with your own insurance company. Did you receive a fair settlement from American Family?

 

[pereiks]

My understanding is that you have to go after the other drivers ins co for DV.

Sorry, didn't read full thread, was thinking that you tried to get repairs cost back.

 

[Uncle Paul]

Not unusual for an independent appraiser to quote a very high DV amount. Also not unusual for an insurance company to quote a very low DV amount. Usually neither can back up their quotes with hard statistics.

The real amount will be some where in the middle, and often arrived at with negotiation.

Insurance companies want to only pay for the hard costs of repairing your car to pre-damage condition. Your DV costs will often depend a lot on how long you keep your damaged/repaired car before selling it, and wether or not the accident shows up on CarFax type reports.

Everyone who gets into an accident, caused by another wants the highest DV payout possible.

 

[Hovscorpion1]

I am by no means an appraiser, but just by looking at both photos, I can tell you that is a $30-$35K repair job. Tesla's are the most complex cars to repair and the most expensive. I've seen Tesla accidents similar to this and the insurance declared it a loss.

The quarter panel alone costs $10-$12K. I'm not even started on the wheel, Axel. They have to remove all tires. Replace the entire wheel chassis to make sure all four wheels are aligned and funton the same. Replace the Brake pad ($$$$). I am not even mentioning if the battery itself needs to be removed and re-added.

$646 is not laughable. Its a joke. I agree with everyone. You need a lawyer like yesterday. You need to take that company for everything if not the full dollar value of 2019 Long Range at $110K. or a P100D.

 

[Hovscorpion1]

I am by no means an appraiser, but just by looking at both photos, I can tell you that is a $30-$35K repair job. Tesla's are the most complex cars to repair and the most expensive. I've seen Tesla accidents similar to this and the insurance declared it a loss.

The quarter panel alone costs $10-$12K. I'm not even started on the wheel, axle. They have to remove all tires. Replace the entire wheel chassis to make sure all four wheels are aligned and function the same. Replace the Brake pad ($$$$). I am not even mentioning if the battery itself needs to be removed and re-added.

$646 is not laughable. Its a joke. I agree with everyone. You need a lawyer like yesterday. You need to take that company for everything if not the full dollar value of 2019 Long Range at $110K. or a P100D.

 

[Rahul]

Yeah it was an expensive repair. I agree, I’m talking to a lawyer who’s ready to take my case. American Family’s $8000 “final” offer is insufficient.

 

[Uncle Paul]

Bet you get a higher final offer after they get contacted by your lawyer...but then the lawyer will get his cut too.

 

[MyWifeandI]

You might want to spend a few more bucks on a second DV appraisal? If you are going to court, you can never have enough ammunition.

 

[RecklessFury]

I don't understand why the DV is more than the repair cost. When looking at the Tesla's used inventory, I've never seen a previously repaired vehicle with that level of DV. This estimate your received is super high and inflated. I wish you luck in recovering as much at you can though. Seriously doubt its any where near 23k you are looking for.