cityhugo

iTrader: (17)

My firend got rear-ended. the insurance company say it was the other person fault. My question is:

The insurance company are paying back to get the car repair, but there was frame damage on the car so it will never be the same. My friend now want to sell the car, but he will lose a lot of money due to the car was involve in an accident

1. Shouldn’t the insurance company pay the difference in the selling price before and after the accident? It just doesn’t seems to be fair that someone hit u and u have to pay the price when u want to sell the car.

2. Is there anything my friend can do?

Thanks

rsm4

Unfortunately, no. Insurance pays to get the vehicle repaired, not to insure the value of the vehicle. I recently read an article about this tiny point--I don't remember the source right now.

Basically, for most vehicles, this is exactly what people want. The insurance company will repair the vehicle. For rare or collector's cars, the insurance coverage does not cover the lost value of the vehicle which would cost significantly more.

I never really found out if you could buy an insurance policy that covers for lost value. I'd imagine you could, but I have no idea what that would cost.

Also, I'm not sure if this is state regulated or not--it could vary depending on your state's insurance laws. I believe some states regulate this so that people's insurance isn't sky high because in addition to getting the Ferrari that Joe Blow just rear-ended fixed, they also have to shell out the $50,000 value it lost as well. This would cause EVERYONE'S insurance to go up "just in case" they hit a rare car.

Yeah, I know it sucks.

cityhugo

iTrader: (17)

But shouldn’t the insurance at least try to fix it as new Ex: replace with all new part that mess up in the accident? My friends is telling me the insurance won’t even cover enough to get the car fix the right way. They try to go the cheapest route. I just don’t know what I will do if this happen to me after I pay $5000 A YEAR FOR INSURANCE!

cityhugo

iTrader: (17)

I also think the person that make the accient happen should pay a lot more for their insurance.

MYEVOVIII

iTrader: (35)

Most insurance company will pay out a deminished value for the accident and will get the mileage from him. I know my insurance co has on every accident. I would tell him to call his insurance Co pronto there trying to screw him if they dont pay out for this.

cityhugo

iTrader: (17)

Can u explain what the deminished value is? Is that what I tell my friend to ask for with the insurance company?

MYEVOVIII

iTrader: (35)

Sure anytime a car is in an accident and you have full coverage. The insurance Co yours or someone else's will pay to have the car fixed+ they will have to pay a dimished vaule for your car. Which they figure up by some percentage(an industry standard ) to what your car would now sell for after being wrecked. Basically with Carfax and other reporting agency's out there people will know when you try to sell the car if it has been wrecked and if you where the buyer would you pay the same for two identical Evo's if one had been wrecked? No, you would offer a lower amount for the wrecked one right? This amount takes that into effect and pays you so in the future you will have the loss covered. Hope this explains it for you.

cityhugo

iTrader: (17)

Do u have to have it in ur insurance coverage in order for this to be in effect? I will tell my friend to ask it anyway, thanks

rsm4

They should pay to get the car repaired. You also have some leverage depending on how old the car is, too.

Your friend should get his insurance company involved if the other person's isn't paying the amount to get the car repaired. Last time some idiot in a truck drove through my car, my agent told me to call him if his insurance company caused me any problems. Luckily, they didn't. (Of course, the fact that I was at a complete stop in traffic also made the situation easy to see where the fault lied!)

rsm4

Here is the article I mentioned:

http://moneycentral.msn.com/content/...car/P69294.asp

cityhugo

iTrader: (17)

nice article RSM4, i will forward it to my friend and let everyone know how this turns out. I think everyone should know about this so they r more educated.