Diminished Value Claim Question

[rickyboycz]

So long story short, I had a minor fender bender that caused some rear end damage to my M3. Scrape across rear bumper cover, and bent up my aftermarket exhaust. I'm working with the at fault drivers insurance company throughout this process.

First off, the At Fault Driver's insurance made me use a non-OEM bumper cover as a replacement. In retrospect I probably should have paid the difference for OEM, but didn't. So I had filed a complaint with TX Dept of Insurance that they were forcing me to use non-OEM parts on my car. The at-fault insurance contacted me today to follow up on my claim. We had a lengthy conversation about OEM vs. non-OEM.

Towards the end of our discussion, I told her I would be filing my diminished value claim shortly and would expect the non-OEM bumper cover to be taken into consideration when the value is calculated. Her response to me was that I shouldn't expect very much since I already had aftermarket parts on my car...referencing the exhaust they just dished out $3800 to replace. She said my car already has a diminished value because of my exhaust.

Just wondering if any of you have had a similar experience that I can learn from. I explained to her that it's not like I put a supercharger on my car or something that could damage the engine, hence decreasing value. Just sounded like a total BS statement. I actually laughed a little when she said it.

[rjd598]

funny you mention this because i just went through a diminished value case myself. someone went into my lane and scraped my front fender which was replaced. i tried getting diminished value from my own insurance company and the other insurance company. it was a waste of time because after months of waiting and sending letters nothing happened. it seems to be hard to win this type of case. maybe i just did something wrong, but that was my experience

[Gr330zhp]

Tell them the exhaust can be replaced with stock at any time. Bumper is something more permanent

[s85e90]

Originally Posted by rickyboycz

So long story short, I had a minor fender bender that caused some rear end damage to my M3. Scrape across rear bumper cover, and bent up my aftermarket exhaust.

First off, they made me use a non-OEM bumper cover as a replacement. In retrospect I probably should have paid the difference for OEM, but didn't. So I had filed a complaint with TX Dept of Insurance that they were forcing me to use non-OEM parts on my car. The at-fault insurance contacted me today to follow up on my claim. We had a lengthy conversation about OEM vs. non-OEM.

Towards the end of our discussion, I told her I would be filing my diminished value claim shortly and would expect the non-OEM bumper cover to be taken into consideration when the value is calculated. Her response to me was that I shouldn't expect very much since I already had aftermarket parts on my car...referencing the exhaust they just dished out $3800 to replace. She said my car already has a diminished value because of my exhaust.

Just wondering if any of you have had a similar experience that I can learn from. I explained to her that it's not like I put a supercharger on my car or something that could damage the engine, hence decreasing value. Just sounded like a total BS statement. I actually laughed a little when she said it.

If someone hit you: they are not contractually obliged to you, so it's their fault and they have to use OEM parts.

If it's your own carrier (1st party) then you have to refer to the policy which will also probaly eliminate the DV claim.

If you need help, PM me.

[s85e90]

Originally Posted by rjd598

funny you mention this because i just went through a diminished value case myself. someone went into my lane and scraped my front fender which was replaced. i tried getting diminished value from my own insurance company and the other insurance company. it was a waste of time because after months of waiting and sending letters nothing happened. it seems to be hard to win this type of case. maybe i just did something wrong, but that was my experience

Yes your carrier (whom you signed a contract with) is not obligated to pay DV, the at fault carrier will be dependent upon state and other variables.

[Longboarder]

I just did this. Someone hit my X5 and did $18K worth of damage including frame damage.

All states are different but in California, the state recognizes the theory of diminished value (the car after the damage repair still cannot be worth the same as the same car as if the damage never occurred).

I don't have time to deal with all the nonsense so I hired an attorney. The attorney had me get an appraisal of the diminished value (the appraisal indicated approx. $6K of diminished value in this case) and then the attorney worked a settlement with the insurance company of the person that hit me.

The insurance company settled for $5K and my attorney got 1/3 of that so I ended up with around $3.5K.

I was hit June 2014 and just cashed the diminished value check last week

[swartzentruber]

s85e90's writeup is correct in my experience as well (I successfully filed a DV claim on a 6 month old GTI, other driver 100% at fault and not my carrier). To Longboarder's point, we were working with an attorney at the time on an injury claim, and he kind of laughed off the DV claim (kind of a "good luck"). Anyway, did it all myself using an online appraisal that I mailed to the insurance company, got $8K, of which he didn't get any cut, thank you very much. Good attorney, just probably not that conversant in this type of law.

In hindsight, the carrier would have been far better just totaling the car, considering they paid $20K+ (including DV) on a car I recall having bought for maybe $18K. Probably would have, if the repair company hadn't lowballed, possibly deliberately, the estimate such that it was probably just under an amount that would have pushed toward a total.

OP, I seriously doubt you'll get much if anything, both from the standpoint that bumper covers are meant to be replaced and likely one of the least significant in causing DV, and also in that you generally can't get DV from your own insurance carrier.

[JAYRICHFROMMIAMI]

My brother lives in Dallas, had a DV claim against the other driver's insurer. He used an independent appraiser from Fort Pierce, FL which set the DV at $7,200. The insurance company (GEICO) ended up paying just under $6K. Get a good appraisal then fight, fight, fight.....

[rickyboycz]

fyi... I'm not dealing with my own carrier. I'm working with the at-fault driver's insurance.

I'll update my original post to be clear in regards to this.

[lorinzo]

Assuming you had NOTHING to do with causing the accident . . ., the other driver is responsible to return your property to the way it was before the incident. If OEM parts need to be replaced... then demand the use of OEM parts.

The amount of diminished value is subject to much debate and is best presented by an expert. To do it right, you will need someone with knowledge and experience in the auto industry. This is likely going to cost you at least a few hundred dollars to get someone to perform research and prepare a report.

You need to be compensated for the fact that your car will show up on CarFax, etc. as being involved in an "accident." As such, it will be harder for you to find buyers and harder to get the proper value for your car.

In addition, you (NOT the insurance company) should get the difference in value between the OEM bumper cover and the aftermarket cover used.

[RR-NYC]

Sue the person, not the insurance company. They may or may not drag their insurance company into it but at least you will be heard

I was sideswiped by a drugged up lady and she took off. I called 911 while I chased her down. When I finally caught up to the car, her boyfriend took off running into the house with a bag of what I can only assume were drugs and magically re-appeared when the cops arrived claiming to have to use the bathroom... 5 miles from the accident

The way the cop wrote up the accident, it could have been anyone's fault (which the opposing insurance company took as being my fault) and failed to mention the hit and run. I pursued a diminished value claim against her insurance and they told me to file a claim on my own insurance.

So I filed a diminished value lawsuit against the driver in small claims for $5000 (max small claims). She failed to show twice so I was granted the judgement. She didn't pay so I had the NY marshals take it out of her bank.

[rickyboycz]

Originally Posted by lorinzo

Assuming you had NOTHING to do with causing the accident . . ., the other driver is responsible to return your property to the way it was before the incident. If OEM parts need to be replaced... then demand the use of OEM parts.

Yeah, I took this stance with the at fault driver's insurance and they essentially told me no. I even threatened to get legal counsel and the adjuster said "we can't advise you on whether you should seek legal counsel, but I can tell you what we're willing to do"...which was pay for non-OEM.

Their argument, which is laughable, is 'why would we replace a used part with a brand new OEM part. Even after I argued about the lack of quality of non-OEM products, and the non-OEM part is brand new.

I did speak with an attorney, and essentially I would have to file a claim against the driver. The insurance is working in what they deem the best interest of themselves and their policy holder. They have no obligation to me as the claimant.

[Harry Da Hamster]

Check with a local attorney.

Unfortunately we do not have diminished value claims here in Hawaii. My brand new 2013 Porsche Cayenne suffered a huge collision on its side only a month into ownership. I lost two lease payments. And icing on the cake is the insurance company was nice enough to provide a Toyota Corolla for the time being. The State of Hawaii only requires basic transportation while the car is down.

[s85e90]

Originally Posted by rickyboycz

Yeah, I took this stance with the at fault driver's insurance and they essentially told me no. I even threatened to get legal counsel and the adjuster said "we can't advise you on whether you should seek legal counsel, but I can tell you what we're willing to do"...which was pay for non-OEM.

Their argument, which is laughable, is 'why would we replace a used part with a brand new OEM part. Even after I argued about the lack of quality of non-OEM products, and the non-OEM part is brand new.

I did speak with an attorney, and essentially I would have to file a claim against the driver. The insurance is working in what they deem the best interest of themselves and their policy holder. They have no obligation to me as the claimant.

Wrong. They are obligated to return you back to OEM because they're responsible as it was their driver who hit you. Your contract is with your carrier not theirs. The use of non OEM parts is not applicable. The bumper on the car is a BMW part so that's what they have to replace. Are you sure they're not talking about used parts as it would still be an oem part? I don't believe many afternarket parts exist as its a low volume car. I can help you as this is my specialty. Pm me if you any assistance. Stay away from attorneys as many aren't insurance specialists. That attorney wasn't really helping you.


Thanks.

[BzsBimmer]

Originally Posted by s85e90

Wrong. They are obligated to return you back to OEM because they're responsible as it was their driver who hit you. Your contract is with your carrier not theirs. The use of non OEM parts is not applicable. The bumper on the car is a BMW part so that's what they have to replace. Are you sure they're not talking about used parts as it would still be an oem part? I don't believe many afternarket parts exist as its a low volume car. I can help you as this is my specialty. Pm me if you any assistance. Stay away from attorneys as many aren't insurance specialists. That attorney wasn't really helping you.


Thanks.

Since this is your playground and not mine, I'll trust what you have to say however it may vary state by state.
I know in a previous claim I had, I had a heated argument with the adjuster because I wanted an OEM replacement part for a vehicle that was 6 years old and they would not. They even threw the policy verbiage at me (this was AAA) so I went through my insurance and had them pursue the at fault party. I did end up paying the difference for an OEM bumper.

Maybe I did something wrong but now I know I have you to PM if it were to happen again

[lorinzo]

The other insurance company is going to do their best to get the repairs done as cheap as possible. This often means using non OEM parts. The majority of cases do not involve a vehicle where, in the future, when the owner goes to sell or trade, the use of non OEM parts will not make a difference.

And... the insurance adjuster knows that most people are afraid of the legal system and/or the claim does not have enough value where an attorney will take the case.

You have to be tough when dealing with the insurance adjuster!

Ultimately, yes... you would file a lawsuit against the other driver.

Originally Posted by rickyboycz

Yeah, I took this stance with the at fault driver's insurance and they essentially told me no. I even threatened to get legal counsel and the adjuster said "we can't advise you on whether you should seek legal counsel, but I can tell you what we're willing to do"...which was pay for non-OEM.

Their argument, which is laughable, is 'why would we replace a used part with a brand new OEM part. Even after I argued about the lack of quality of non-OEM products, and the non-OEM part is brand new.

I did speak with an attorney, and essentially I would have to file a claim against the driver. The insurance is working in what they deem the best interest of themselves and their policy holder. They have no obligation to me as the claimant.

[s85e90]

Again there's no need for a lawsuit against the driver.

To make it clear again:

1. You only have a contractural obligation with your carrier

2. If someone else hits you, their company is at fault and has to put the car back to pre loss condition. They can't stipulate anything other than oem as they're at fault and there's no agreement in place to use any type of parts.

No one reads their policy as they should but remember you only have a contract with your carrier.

[RR-NYC]

Originally Posted by s85e90

Again there's no need for a lawsuit against the driver.

To make it clear again:

1. You only have a contractural obligation with your carrier

2. If someone else hits you, their company is at fault and has to put the car back to pre loss condition. They can't stipulate anything other than oem as they're at fault and there's no agreement in place to use any type of parts.

No one reads their policy as they should but remember you only have a contract with your carrier.

I completely agree

In my case, I had to go after the driver because our respective insurance companies paid our own claims due to the incompetence of the NYPD taking the report.

The damage to my car was only $1200 so Geico wasn't too interested in fighting the other insurance company over the claim.

After the other party failed to show the second time, an arbitrator heard my case and awarded the judgement

[tailgate1234]

I got a $9K diminished value payment from state farm (insurer for the other driver). I got an appraisal and it wasn't easy. Your own policy likely excludes diminished value, but the other person's insurance is obligated to pay you for all of your damages. If the other person's insurance is paying, you can use OEM parts to fix your car and likely go to any repair shop as long as the cost is not unreasonable

[Craigy]

Laws vary on diminished value from state to state (and insurance claims in general) and every insurance company is different, and how it's handled differs with every claims adjuster. A lot of the advice you will get likely doesn't apply to your scenario. OEM vs non OEM parts also varies state to state (some states will even allow them to put refurbished parts on your car).

Insurance company will likely stonewall you on this, and you will have to lawyer up. Search in your area for an attorney who has successfully handled these claims, and let him deal with it. Money well spent.

[s85e90]

Originally Posted by Craigy

Laws vary on diminished value from state to state (and insurance claims in general) and every insurance company is different, and how it's handled differs with every claims adjuster. A lot of the advice you will get likely doesn't apply to your scenario. OEM vs non OEM parts also varies state to state (some states will even allow them to put refurbished parts on your car).

Insurance company will likely stonewall you on this, and you will have to lawyer up. Search in your area for an attorney who has successfully handled these claims, and let him deal with it. Money well spent.

OP lives in a state that recognizes DV claims. Also OEM vs. non-oem NEVER applies when someone hits you and their company foots the bill. Sure they may try but again there's no contracual obligation (like with your own carrier) to stipulate that. If you hit me, yes you're gonna return my car to pre-loss irregardless.

[kscarrol]

Agreed though the pre-loss condition includes a 4 year-old rear bumper cover, assuming the OP is still driving the '11 E93. Based on that the at fault insurance company can track down a "used" bumper cover from a scrap yard etc to replace the OP's bumper cover. Like him I would want OEM but you may get the older, "like-kind" bumper cover.

I was rear-end last year and the at fault's insurance company told me the same thing on the bumper cover. In a very short time period they realized that no one makes replica E90 M3 bumper covers and tracking down a used one in good shape was not worth the roughly $600 cost of the new OEM bumper cover... I got the new part I wanted.