Diminished Value

Diminished Value

Tessy was struck at the rear door / rear panel juncture about a month ago. The at-fault insurance has finally accepted liability and $4k of repairs are being scheduled. They claim Diminished Value can be addressed.

If my wife gets her way and we move to a condo within 24 months I may have to sell Tessy. This makes diminished value a real issue. Here is how I am considering determining what might be a good value to use:

enter data into a Blue Book and/or similar online service and get basic quotes including a cash value
take car to CarMax and get quote (assuming they look at accident report)

compare the quotes to get an idea of the presumably lower CarMax quote

base the asking amount off the difference, perhaps padding as an initial value. I expect cost/difficulty of selling to be a factor.

Any other suggestions?

hokiegir1 | 23 gennaio 2019

I'm using this calculator/system to talk to the insurance company after our car was hit. I figure it should give a good starting point and I can have something to show how I got to my numbers that they have to dispute.

rxlawdude | 23 gennaio 2019

Get an expert on diminished value. You're likely to get a figure far greater than what the insurance company will offer, and it will more than pay for the expert opinion.

CorkChop | 23 gennaio 2019


roberttown | 23 gennaio 2019

I'm checking on some, but the base cost is at least $250, and the only promise is they'll get at least that much back.

awhiting | 23 gennaio 2019

Absolutely get an expert opinion. Without it, you will get almost nothing from the insurance company. They are not on your side.

I'm going through a DV claim right now. I hired an expert for about the same cost and then the insurance company sent in their appraiser that will cost them about $4k. You know if they're paying $4k they don't want to give me anything for the DV claim.

pjug03 | 23 gennaio 2019

The insurance company will give you max $1500 for diminished value.

RES IPSA | 23 gennaio 2019

You always have the option to not sign the release and file a lawsuit...

mehingle14 | 23 gennaio 2019

#rxlawdude. Would you happen to have a referral for such an expert in the Bay area?


howard | 23 gennaio 2019

Had a DUI pot head crash into the back of my brand new 2018 GM Denali 2500HD. 10k in damaged was their limit of liability for their out of state FL insurance so no diminished value. Lucky to get the repairs covered. Just lost about 6k if I trade in like normal. Paying for subsidized coverage for the majority. The few accidents I have had have always been minimum coverage at fault parties. Just stupid!!!

rxlawdude | 23 gennaio 2019

@mehingle, sorry I don't. But someone here will have the name of the guy many have used. He's not in California, as I recall.

mehingle14 | 24 gennaio 2019

Something tells me that I'm not going to find this person in the expert directories that I have available to me. Does anyone have the Tesla diminished value experts information? There probably aren't that many of them, particularly as to model 3s.

HollywoodFLM3 | 24 gennaio 2019

I had create a report for $250. Ican was going to use the purchase agreement to estimate diminished value, but now they are waiting for the NADA used 2018 Tesla model 3 resale value numbers to be released at my request. My month old P3D was backed into and the result was $7k in body damage (not including the $3k for ceramic and XPEL wrap) and rental car for a month. My insurance also doubled. We'll see what happens. Initial estimate was $5,000 in diminished value.

roberttown | 25 gennaio 2019

After googling a few firms I think I found a decent (but not cheapest) collision appraisal firm. They advised me to get the repairs (same as at fault insurance) then see what was offered. If within $5k-$7k, well and good. If not consider their fee which is reduced by taking specific pictures show car in pristine shape. I personally felt half that amount would be offered; but am willing to stand firm if insurance continues in the manner they started.
The firm will provide specific instructions on how to negotiate, written demand letter, etc. The demand should include reimbursement for their service. They had a number of testimonies on how insurance companies low bid at 10% levels and eventually paid up including costs.

zyzhang0118 | 15 maggio 2019

@roberttown, I'm also from Bay area, I just got my M3 back after a 14K repair, curious what's the collision appraisal firm you were contacting? And what's the current status of your claim. TIA!

WantMY | 15 maggio 2019

Rule #1 - stay away from used cars involved in any accident. You would get beating on trade in, ins co would outsmart you in any case though, probably already did.

hfalkenstine | 9 settembre 2019

I complete diminished value appraisal reports based on the stigma of prior damage. Tesla defines a structural component as any part that is welded, weld-bonded, or riveted to the vehicle. Repairs are not completed utilizing the original type spot welds instead the approved repair procedure for attaching new/replacement body panels involves rivets and Tesla supplied adhesives. So if your Tesla has had body panels replaced it carries the stigma of structural repair.

contact | 8 gennaio 2020

Diminished Value and Loss of Use Reports for Teslas are offered by The St. Lucie Appraisal Co. in all 50 states. Please feel free to call for info or with questions. Probably 500 Tesla DV appraisals prepared to date.

AlpieCO | 23 gennaio 2020

A little birdie told me that the rule of thumb that some insurance companies use to calculate max reimbursable diminished value is 35% of the *pretax* damages. And they may start by offering you only 3/4 of that amount.

dceckert513 | 27 gennaio 2020

2018 Tesla Model 3
Accident @ 10,000 miles
Damage $10,000
Estimated value at time of accident $40,000

GEICO represented other party and very difficult to deal with throughout the process. They offered $1500 for finished value. I countered with $10,000 when Tesla gave me a trade in value of $26k. They finally agreed to $7500. Took 6 months of persistence.

dceckert513 | 27 gennaio 2020

Sorry, finished = diminished

dceckert513 | 27 gennaio 2020

Also, they will quote some maximum they can pay is 10% of retail value which is bologna.

rxlawdude | 27 gennaio 2020

Remember, when you are the injured party (your car is damaged/destroyed), the law is clear that you are entitled to be made whole by the at-fault party. This includes a COMPARABLE replacement vehicle during the time the car is being repaired, or a COMPARABLE (same features, mileage, and general condition) vehicle as your totaled car.

A common mistake people make is letting their own insurance company deal with the at-fault party's insurance. It is far better to deal with the at-fault insurer, and you can (legitimately) push them with "bad-faith" (triple damages!) if they do not in fact make you whole.

The other party's insurance company will, in the case of repairs that take months, try to convince you that they only pay x number of days or up to y dollars for a rental vehicle. Don't let them do that!

RES IPSA | 27 gennaio 2020

gotta love the treble damages maneuver

crmedved | 27 gennaio 2020

@rxlawdude Note: insurance laws vary by state, so the term "comparable" also varies by state. In my state, a comparable vehicle is based on # of doors & vehicle type (suv, compact. mid-size, etc)... features, mileage, age, gas/electric, etc are not considered. Best car I could get while my AWD M3 is in the shop is a Ford Fusion.

mazers | 28 gennaio 2020

I was in an accident a couple of weeks ago with my 2018 LR RWD with FSD. Currently waiting to see if it can be totaled as the initial estimate just walking around was $15K. This was before tear down. I told the at fault party's insurance company that I expected to be in a rental Tesla. They said they doubted any were available, so I showed them that they were indeed available. They agreed, and I'm currently driving a rental 2018 Model S. I turned it in to my insurance company, so I expect I'll have to work to get a good value if it is totaled. I'd like to get $45k if it is totaled.

I informed the insurance company that it would probably be cheaper to total it, as the total cost of the rental car, insurance claim to fix, and diminished value claim would probably be more than a total loss payment. I've already gotten advice from a very experienced diminished value guy here in Maryland.

marym23 | 28 gennaio 2020

My car was rear-ended on December 12. I have a LeMR with FSD. Before tear down the repair quote was $17,000. After tear down it is $28,000. They will NOT total the car. And since the person who hit me didn't have enough coverage, my insurance company has to pay. So I got a rental car for exactly 1 month and now I'm in a loaner which is a Toyota Yarus! In Oregon, you cannot get diminished value if your insurance company is the one footing the bill. I will have to personally go after her insurance company, USAA, in order to try and get diminished value. My car had PPF, ceramic coating, stealth hitch, custom wheels. It cost me $66,000 but I got $10,000 in refunds so it's a $56,000 car. The insurance adjuster said the base value was $48,000 but they were not going to total it. In Oregon, the cost of repairs can go as high as 85% of value before they will entertain totaling your car. The worst part of all this is that I won't get my car back until at least the end of April.

Haggy | 28 gennaio 2020

Comparable should include the same or newer model year, and same features, but not necessarily the same color. Sometimes it will be impossible to find, but if you push the insurance company and insist that they find something comparable, that can give more room to negotiate. It shouldn't be a big problem with the Model 3 because it's not as if there are many configurations.

I once had a vehicle that was totaled, and I argued that the closest they found had different seats, so they should check with a service center and find out what it would cost to order the seats. They raised the offer quite a bit after that.

Originally, they wouldn't consider it totaled, but I pointed out frame damage, and had photos taken with measurements by an engineer who specialized in that sort of thing. I happened to have worked for the same company he did, and it happened near work, so I didn't even have to ask. He had also put a steel measure across the seats and took photos, so it was clear that the seats were out of alignment, which is something that the insurance company estimator missed. At that point they weren't going to argue with me.

RayNLA | 30 gennaio 2020

I’m curious as to how the insurance company will value the FST software.

sp | 7 febbraio 2020

#rxlawdude.: As a proficient expert in Diminished Value and experience with many Tesla Model 3's, Model x's and Model S The Auto Mediator prepares many of these reports and covers the bay area as well as the rest of the country.