Rear ended in Florida - do I need to notify own insurance? What about diminished value?

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
My father was rear ended. His vehicle seems to be in good shape besides the rear bumper, which will need to be replaced. He claims to be OK, but he does have a headache and is feeling dizzy at the moment. I am making him go to a doctor against his will to make sure that he is completely OK.

The police determined the other driver to be at fault and ticketed them. The at fault driver has an expired drivers license, and the vehicle they were driving was their friend’s. My father reported the accident to the vehicle owner’s insurance company.

Their insurance company is willing to pay for my father’s repair, car rental, and is also offering $500 for his “headache” / "the inconvenience the accident has caused." He was unsure why this was being offered to him, as all he wanted was for his vehicle to be repaired.

His question was whether this was normal and if he should accept the $500 or if that was a bad idea?

He was planning to sell his vehicle soon and purchase a different one. Since his car has now been in an accident, the value of it will likely not be the same as it was before.

Is it possible to receive any compensation for this drop in value the accident has caused?

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

Cart before the horse. Even if he was pulling out of the lot in his new LaFerrari, that headache they're trying to wish into the cornfield for $500 has the potential to be a symptom of numerous things that will wind up dwarfing any possible DV claim.

no insurance covers diminished value as far as I know.

The age of the vehicle will determine some aspects of the diminished value claim. I was rear ended in a 2015 vehicle with 5k miles on it, and essentially just got a diminished value check for much more than the $500 headache solution your father was offered.

If his vehicle is over 5 years old the return on a diminished value claim will be low. Walletfart is incorrect. In the state of Florida the 3rd party vehicle owner's insurance will have to handle your diminished value claim. If your father's vehicle is less than a couple years old you will probably want to go after diminished value AFTER the vehicle is fixed. You can't do a diminished value claim until AFTER the car is fixed. It's worth paying for a report for diminished value from a few sites out there (I paid $70 for mine), because the VIN number on his vehicle will be tarnished as being in an "accident", so if he has to trade the car in the dealership will give him less. EVEN if it's for the simple bumper they don't care, if CARFAX (and it will if it goes to a repair shop) DINGS the car as being in an accident (police reports do this as well), then he will get less if he ever trades his car in, even for a simple bumper replacement.

My 2 cents, I'm dealing with all of this now, but I have paid for loss of use (didn't get a rental just made them pay me to drive another vehicle around I owned), then got paid on diminished value as well.

walletfart said:   no insurance covers diminished value as far as I know.
  No insurance does not cover diminished value as far as I know.

Get the headache and dizziness checked out first. Do not sign anything or accept that 500 until a doctor has checked him. They would love for every accident victim to sign away their rights for a mere 500 versus the typical 5 figure medical bills.


If your car did have the above mentioned repairs, the diminished value could reach 50% of the car's value lost. Sorry to be the bearer of bad news. The good news is that you can make a diminished value claim but only if someone else caused the accident. This is the same in Florida as in all 50 states.

BingBlangBlaow said:   
walletfart said:   no insurance covers diminished value as far as I know.
  No insurance does not cover diminished value as far as I know.

  I'm receiving some red for this comment; would anyone like to add why they disagree with this? I didn't specify, but I did mean in a situation where the other party was at fault (as in the OP's case). In that case, the other driver's insurance, or your own un/der-insured motorist coverage should cover diminished value.

NOTANEXPERT said:   If your car did have the above mentioned repairs, the diminished value could reach 50% of the car's value lost. Sorry to be the bearer of bad news. The good news is that you can make a diminished value claim but only if someone else caused the accident. This is the same in Florida as in all 50 states.

This guy sounds like he's selling something.

DV is not nearly the same in all 50 states. NY, for instance, you can only collect on specialty/collectors cars.

Incorrect info, speeding lunatic, you CAN collect third-party diminished value in New York as well as in all states. What I'm selling is good advice gained from many years in the diminished value claims business. Many people regret their decisions after listening to advice from people who have no clue what they are talking about.

Diminished value is allowed first party in Georgia, meaning you are in an accident and your insurance pays you. Most carriers can exclude first party coverage for diminished value via the policy contract. However, a third party / liability meaning you claim it against the at fault person, or they claim it against you can include diminished value. Diminished value is somewhat disputed because it is hard to realize the loss without selling it.

NOTANEXPERT said:   Incorrect info, speeding lunatic, you CAN collect third-party diminished value in New York as well as in all states. What I'm selling is good advice gained from many years in the diminished value claims business. Many people regret their decisions after listening to advice from people who have no clue what they are talking about.

I didn't say you couldn't, I said it's extremely difficult, and impossible for most people.

I'm in the middle of a 5 figure DV negotiation in NYS...

SpeedingLunatic said:   
NOTANEXPERT said:   Incorrect info, speeding lunatic, you CAN collect third-party diminished value in New York as well as in all states. What I'm selling is good advice gained from many years in the diminished value claims business. Many people regret their decisions after listening to advice from people who have no clue what they are talking about.

I didn't say you couldn't, I said it's extremely difficult, and impossible for most people.

I'm in the middle of a 5 figure DV negotiation in NYS...

  I guess we shouldn't be surprised, considering your user name.  



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017