In California you cannot claim Diminished Value (DV) against your own insurance company unless it is specifically written into the policy (I would imagine a high percentage of policies do not include DV). I went through a DV claim a few months ago. I was rear ended while stopped at a traffic signal and the at fault parties insurance (Nationwide) accepted responsibility. The damage was limited to the bumper cover and was less than $2,000.00 to repair. As we all know, the fact that the vehicle now has an accident on file is what lowers the value. Accidents with greater damage can increase the amount DV. The first thing I did was get a DV appraisal from tesladiminishedvalue.com for $350.00. I found that site through suggestions here on TMC. The report was completed in about one week. Once completed, I sent the report along with the included demand letter over to Nationwide. It was almost immediately rejected. I contacted the at fault party and informed them that their insurance company rejected the claim and my only recourse would be small claims court, unless they could get Nationwide to pay the DV. Nationwide contacted me and asked that I not contact their client. I told them essentially that they needed to indemnify their client or I would sue. They did not change their stance. It is to be noted that you can file a complaint with the California Department of Insurance. However, my research suggested this would fruitless and a waste of time since they cannot legally make the insurance company pay the DV. Ultimately, I filed a small claims case within my county. It was much easier than I thought it would be.
A few things to note:
1. You can only sue the at fault party, and cannot sue the insurance company
2. The maximum amount for small claims court in California is $10,000.00 if you are suing an individual, and only $5,000.00 if you are suing a business. Anything higher and you will need to file a civil case which will increase court costs and may require an attorney.
3. The process for filing the claim was pretty easy using an automated program on the court's website.
4. Court cost was around $80.00 to file the case. I paid an additional $55.00 to have a process server actually serve the at fault party and another $45.00 to have the server file the proof of service with the court. I never had to leave my house. I filed the small claims case online and made a phone call to the process server company. It was much easier then I thought.
5. Court was simple. No lawyers allowed in small claims court in California. The at fault party stipulated to being at fault, so I didn't have to argue that portion. I brought the DV report, my email exchanges with nationwide and the at fault party, and screen shots of my phone records for the calls I made with them. The judge looked at the DV report and the at fault party argued that it should be less and also that I hadn't "realized" the DV because I didn't sell the vehicle. The judge stated the vehicle did not need to be sold for the DV to be realized.
6. The judge ultimately ruled in my favor and I was awarded the DV. The at fault parties insurance company called me a day or two later and wanted to confirm my address prior to mailing me my check.
Some things I learned:
1. Get the DV report soon after the accident. I waited a while and the value of my car lowered in that 9 month time frame. It was hard for the judge to identify what the value of my vehicle would have been worth at the time of the accident. Ultimately, I was happy with the judgment awarded, but it was a little less than what I filed my claim for.
2. You have 3 years from the date of the accident to file the small claims case.
3. Insurance companies will flat out lie and tell you that DV does not exist in your state and feed a bunch of other lies as well. Do not believe them.
4. Do not waste time going back and forth. Move from requesting the DV and them denying it to immediately filing the small claims case. I only spent about 3 weeks, but I wish I had done it sooner. Some people go back and forth for months (No thanks).
5. If the at fault parties insurance still does not pay after the judgment, then the at fault party will need to turn around and sue their own insurance to recoup their loss. Theoretically, it would be a simple case for them to win.
6. Civil jury instruction 3903J within California specifically outlines DV. In other words, clearly DV exists in California since there are literal instructions for a jury on the matter.
7. The judge did not include the $350.00 I paid for the report in his judgment, but did include the court fees.
I know this is lengthy, but I hope it helps someone out. Based on my research here on TMC and online there are a lot posts about DV, but not a clear explanation on filing one from start to finish. Obtaining the DV report was a $350.00 gamble, but in my case it was worth it. Good luck to all of you who took the time to read this!
*I am not a lawyer. I am passionate on this subject since I feel like insurance companies are more than happy to take money for premiums and then will fight tooth and nail to deny or minimize claims. I understand it is a "for profit" business, but I cannot stand them denying legitimate claims.
