Passing the Word

I don’t actually drive, I just like to ride around and smell the view, but I know something most drivers don’t. It’s what insurance companies don’t much talk about. If your car has been in a collision, you can file a claim for “diminution of value.” Good thing, too, because thanks to the internet any dealer you’re trading with can find out what’s happened to your car, and tell you, “Gosh, Ma’am, your car is worth a lot less than Blue Book because of that accident you had.” But, collecting on that claim of diminished value is going to cost you in time and pulled-out hair.

What happened: we were stopped at a stop sign on Anthony Road when a lady pulled off Rt. 213 and broadsided us. Old John filed a damage claim against her insurance company, Nationwide, which paid it right away. So, once I told him about “diminution of value,” he filed a claim for that, too. I knew we were in for it when the response came and I saw the preposterously complicated claim number: 52 19 E 465471 11292009 01.  Care to guess what happens with your claim when you reference that and happen to get one of those numbers, letters, or spaces, wrong? Of course I understand this hurdle was thought up for Nationwide by some wicked Harvard MBA in a back office, not that nice “adjuster” we were dealing with at Nationwide.

The adjuster was so helpful, promptly advising what we must provide to collect on our “diminution of value” claim.  To wit: “Copies of any and all repair invoices for repairs, work, etc., ever performed on this vehicle. Copies of all maintenance records. Name(s) and policy number(s) of all insurance companies which have provided physical damage coverage on the motor vehicle. If this vehicle has been the subject of any insurance claim, a copy of the appraisal/estimate of repairs. A notarized copy of the Bill of the Lease Agreement. A copy of the DMV Title along with the title history from the DMV. A notarized letter from any expert witness testifying to the diminution of value.”

Well sure, we keep all those records handy, no doubt just like you, but there’s one small problem. You’ll note that “expert witness” is not defined. Wouldn’t you guess that anyone whose car has ever been in a serious collision, or any car dealer, or anyone employed in a claims department, would be expert in witnessing that a wrecked vehicle has dropped hugely in worth? Don’t bet on it. But call and email Nationwide for a definition of “expert witness” — and time goes by.

And I’m betting what Nationwide means is a professional damage appraiser. So Old John needs to pay somebody to tell him what he knows: the car is worth less now. It happens there is an internet site: ICAN, which can tell you quickly that when your year-old $18,000 car with less 10,000 miles suffers $3,800 damage then it’s diminished value is $2,700. But, for a formal report to that effect, you’ve got to pay ICAN $199. Without being sure that Nationwide considers ICAN to be “expert.”

But wouldn’t you think that the company that just got done appraising your car for the damage claim, and paying that damage claim, already knows all the information it is asking for? And has 100 or 1,000 damage appraisers of its own who know how a car diminishes in value once it’s been smushed?

Two months pass. Old John begins muttering that insurance companies are where the more successful Red Sea pirates wind up. Then just when we’ve given up, Nationwide makes an offer. It’s only a third of what ICAN said it should be. We counter, and we end up getting about half. We could have argued on, but who’s really got the resources here? And $1,500 and change is a whole bunch better than zip. So remember the magic term, “diminished value claim.” It’s something the industry doesn’t volunteer – even our own insurance company, Geico, didn’t clue us to it when the insurance firm of the other driver was obligated pay.  You’d learn about it sooner from your back-seat dog.