Ls430 Accident - Diminished Value

[Supraguy]

I'm posting because this could happen to any Lexus owner and have considerable financial and long term impact.

I have an 06 LS430 with 2K miles. Last week, I was involved in an accident resulting in approximately $12K of damage to the front right fender area (the passenger doors won't even open). The other vehicle was at fault and was issued a citation for failure to yield.

I took my LS to a Lexus recommended body shop and immediately got a call from the other party's insurance company that they will not pay above "normal" hourly rates. Being a high-line body shop, they charge about $5 more per hour labor and for this repair could equate to about $1,000 more than a "normal" body shop.

Furthermore, I am investigating diminished value as I understand regardless of how well the vehicle is repaired, it will never be worth the same as before the accident. My questions are:

1. Can the at-fault insurance company dictate the maximum allowable hourly rate? We're not dealing with Chevy's here.

2. What is the best way to estimate diminished value? I read 10-15% of vehicle's current value is acceptable.

As owner's of premium automobiles, everyone needs to be aware of the implications of an automobile accident and its resulting effects, both financially and mechanically. Any advice is appreciated especially from those who have experienced similar.

Joe

[nc211]

Notify the insurance company that you plan to consult with your attorney before making any decisions and or accepting ANY of their polocies! No, the insurance does not set the hourly rate on these vehicles to a degree. Now if the going rate on a Lexus repair is $150 an hour, and your guy charges $200, then they might have a solid argument. But if the going rate is $75 for a chevy and they're using that as the basis for their payment obligations, well, then you've got a solid argument against them. Insurance companies start at ridiculous low levels and will feed you bit by bit until you bite and waive their true obligation. By telling them that you're not going to accept any offer from them without your attorney's approval first, you're indicating to them that you know what you're doing, and expect them to know and acknowledge this fact, via your attorney.

If the accident caused $12,000 worth of damage, are you sure the frame wasn't bent? Sure does sound like a lot for just cosmetic damage, but could be wrong.

[1990LS400]

Supraguy,

I'd recommending getting your own insurance agent involved - including on the diminished value issue. That's why you pay him/her the "big bucks" to cover your car.

Our previous LS was rear ended in 2000 - $11,000 damage - right rear door and gas filler door would not open. The other insurance company quibbled about the repair price and even expected me to drive around in a subcompact rental car for a couple of months.

I told them that it was not my problem, I was in pain from the crash (I really was) and that it was up to them to negotiate the repair price with the body shop. I told them I was going to rent a luxury car at least as nice and safe as my LS - we "settled" on a fairly large rental SUV. During that time I also refused to sign the medical release so I had that hanging over them too.

In our case, there wasn't a diminished value issue. The old LS was 10 years old and the other insurance company could have "totaled" it if they had been smarter. But on your 2006 LS, the diminished value settlement could be quite large.

On a positive note, it was impossible to tell that our old LS had ever been hit. It drove and looked perfect after the repair and for several more years until we sold it.

[dianelouise]

So sorry to hear about your accident. I had a similar case. I was rear ended in my 2003 Lexus es300 (15K miles) - I did not hit the driver ahead of me and there were no other vehicles involved. I drove immediately to the best repair shop in town (the one where all the high end vehicles go) and left my car there for the damage estimate. I drove home in a mid sized rental. the driver's insurance company did not bicker at all about the $12K in repairs nor the 2 month rental. I am having to work hard at getting the diminished value however. In my case, the vehicle had 10 hours of frame work - the trunk had been hit square and was nearly flat - the rear view window was not broken. After the car was fixed, I brought the vehicle into my Lexus dealer and asked for a written estimate of how much they would have paid me on trade in before the accident and how much they would give me after the accident. Even the dealer was reluctant to give me anything in writing. Other dealers (mercedes, acura, etc.) would tell me verbally what the difference was but would not put it in writing citing "legal issues". At one point I went in and actually went through the process of purchasing a new car in order to get a written trade in value. I have sent that information to their insurance company and intend to follow up every week until I get my money. In my case it was 30-40% of kbb-trade in value. it's worth it to fight for it. good luck - diane

p.s. you can google on "diminished value appraisals" to get people that will write up appraisals for you - it will cost you $300 or more - they guarantee you'll get your 300 back, but not the entire diminished value. I'll try doing it myself first - and use them if I don't get satisfaction.

[RFeldes]

This is really a heartbreaker and adding insult to injury, but "fight", the squeeky wheel gets the grease and that is a given. Best of luck, but luck goes to the few that go the extra mile.