Auto Insurance Claims/Dimished Value

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Question
Hi, my family and I were involved in a car accident a year ago. The person who caused the accident accepted responsibility and her insurance company happen to be the same as our. We decided to get a different vehicle, but the dealer gave is less than the KBB trade in value because of the accident (this was not fair since we did not cause the accident).  I just noticed that CA has a 3 year DV limitation.  The car had full coverage so I called AAA and they said that I would not be able to file a claim. Is this true? Is it not worth pursuing?  Any advice would be appreciated.

Answer
I am not familiar with CA law, and there may be a specific CA exclusion that applies here.  But in most states, you would have a valid diminished value claim up until the statute of limitations expires, which is 3 years from the date of accident for property damage in California.

You can only make this claim with the liability carrier - the policy for the driver who was at fault.  Your policy will generally not cover Diminished value.  Did you speak to the claim rep who handled the liability portion of your claim?  if not, call that person.

Also, what reason did the person give you for denying the claim?

The value of the claim would generally be the difference between what the dealer would have given you if there had not been an accident.

Auto Insurance Claims

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Claims Guy

Expertise

I am currently an Auto Claims Manager for a large insurance company. I have 20 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Experience

I am currently an Auto Claims Manager for a large insurance company. I have 20 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators

Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.

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