sbeau4014Founding Member  Member Posts:427  
| 10/02/2009 5:10 PM |
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This topic in not related to catastrophe work, although I suppose it could be applied to heavy hail or wind damages to an automobile. Has anyone out there had any dealings with claims for diminished value to heavily damaged vehicles in the state of Texas? It has been about 16-17 years since I was involved in anything about this and was wondering if anyone has any experiences more recently then that. |
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| 10/02/2009 9:36 PM |
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Most companies if not all do not allow diminished value on 1st party claims. I have dealt with several on 3rd party. Most time a token payment is allowed. Most I have ever seen is 5000 on a high end veh. In my view diminished value is directly related to the quality of work done on the vehicle and the vehicle owner chooses the shop. Do you have a specific question? I have handled a few, and have done post repair inspections on several.
JWG
I know the voices aren't real, but sometimes they're right!
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Ray Hall Senior Member Posts:2443
| 10/03/2009 8:46 AM |
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I am not 100% sure, but I don,t think any new case law has been tried in Texas, just the same old tune. |
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sbeau4014Founding Member Member Posts:427
| 10/03/2009 1:09 PM |
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The question actually deals with something on my personal vehicle and my search engine on puter wasn't working yesterday. I was lucky enough to be sitting at a stop light minding my own business with a car in front of me doing the same. I was hit from behind by a car doing between 55-60 mph and they never hit their brakes. Annihilated the car behind us, and also the car in front of us. We turned it in to our own carrier basically for a "notice only" and to get a rental started up, but they had an appraisal done on it. Guy came up with about $6500 in damages, but that only included 2 hrs of frame set up and repair. I looked at it a bit and there was a lot of damages underneath. There was a lot of stuff that was pretty evident and not addressed, but he had a attitude ("I realize you are an adjuster, but I've been doing cars for 4 years and this isn't my 1st dog and pony show") and I decided since I don't plan on my own carrier taking care of the damages anyway, it wasn't worth the time to deal with him. He even asked me after his 1st inspection if I had hit something with the front end also, and when I told him I had totalled out a $22,000 car with it.... I think he took a 2nd look after that.
Since my post I did find that in a lot of states, including Texas, there have been case rulings that have disallowed diminished value on 1st party claims. The Texas Supreme Court ruled on a case in 2003 I believe it was, where they ruled that the language was specific as to what is owed under the contract ( repairs to put it back in it's pre loss condition, or ACV of the vehicle, or the stated value on the policy). That is the same approach I had always taken, but haven't dealt with, or supervised auto claims since 1996. Info that I read stated that the above information only applies to a 1st party contractual claim for vehicle damages, and not a 3rd party claim. |
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Ray HallSenior Member Posts:2443
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| 10/03/2009 5:06 PM |
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I owned a collision center for 9 yrs and managed 2 for another 9 yrs ,,,,if you had 6500 in damage he wasnt doing 50 or 60 and not hittin the brakes and u sittin still ,maybe 30 to 40,,just looked like he was ,,,,that speed with cars now a days will run in the 10 to 14 k range ,,,insureds cant sue for diminished value,,,,,,,,,,,,,jt
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| 10/03/2009 7:34 PM |
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Depending on which company the adjuster works for, and whether they are staff or independent, he is probably limited to writing what he can see. You say there are missed damages that are pretty evident, but if they cannot be photoed he may wait on teardown before adding the damage. I'm obviously giving him the benefit of the doubt here. By giving two hours frame time, he has addressed the damage and can always add more if the shop needs more. I worked staff auto for a major carrier that would ding you on an audit if you wrote a bumper absorber and rebar before the damaged cover was removed and could be inspected. It did not matter that the front bumper was pushed far enough back to be in the radiator support, if the damage could not be photoed, you better not include it on the estimate. Best thing to do is get the veh to the shop of your choice and let them handle the supplement.
I know the voices aren't real, but sometimes they're right!
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Tom TollModerator & Life Member Senior Member Posts:1865 
| 10/03/2009 9:18 PM |
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First party diminshed value claims are not an element of damage. Third party value diminshment claims are an element of damage, but must be proved. Success is not final, failure is not fatal: it is the courage to continue that counts.
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okclarryd Veteran Member Posts:954
| 10/03/2009 11:02 PM |
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My value has diminished but I think it's cause I'm old and feeble and .....................
Larry D Hardin
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Tom TollModerator & Life Member Senior Member Posts:1865
| 10/04/2009 10:30 AM |
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I'm with you on that one Larry. Success is not final, failure is not fatal: it is the courage to continue that counts.
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sbeau4014Founding Member Member Posts:427
| 10/05/2009 8:57 PM |
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Me too Tom and Larry
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| 04/12/2010 4:52 PM |
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Yall are so bad. But I do agree. I have stopped looking in the mirror. I like those ones on the interstate rest stops that are just polished metal.
I also agree with the previous comments. I will add that on the 3rd party claims, the rarer, more expensive, and the more damage there is regarding the vehicle, the more likely hood of diminished value. A mint condition undamaged older car (antique) might have one value but if it was heavily damaged and then repaired, would probably have diminished value. On a 2-3 year old Hyundai Accent there would be little if any diminished value if a reputable shop repaired it fully.
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