1. Attachments are working again! Check out this thread for more details and to report any other bugs.

Need help! I'm researching Depreciation on Prius for insurance purposes

Discussion in 'Gen 2 Prius Main Forum' started by themaskedmedea, Mar 21, 2008.

Page 1 of 2
  1. themaskedmedea

    themaskedmedea New Member

    Joined:
    Jan 17, 2008
    7
    0
    0
    Location:
    Miami
    Vehicle:
    2008 Prius
    I live and work in downtown Miami, Florida. Which is to say that, by natural law, no new vehicle is permitted to be in pristine condition for longer than three months.

    My brand new 08 Spectra Blue Prius Touring -- which I just purchased on January 10th -- was damaged in an accident when some guy in a Ford Explorer decided to change lanes into me while I was on my way home from work last night. He was ticketed for improper lane change.

    His insurance company is taking full liability. I was told that I will need to file paperwork to claim the depreciation in value. To do that, I need to start doing research on precisely how much such an accident will depreciate the value of my car.

    I lucked out because I can prove my car was in perfect, like-new condition because it was inspected by my insurance company just a couple weeks ago and I have that paperwork. But I don't know where to start researching what the value of my vehicle was pre- and post- accident.

    I checked out KBB but the 08 is not up there yet.

    If you have any ideas or input, I would greatly appreciate it.... Just FYI, here is the info on my car:

    -2281 miles
    -Leather interior + Touring Package
    -Everything else factory
    -Initial inspection suggests body damage only. All damage is to the passenger side. Passenger front headlight fixture, bumper cover, both side panels, mirror, door. Waiting on a call from Kendall Collision (the dealer's shop) to make sure that everything else is okay.
    -Airbags DID NOT deploy.
    -NO broken glass.

    Any resources, websites, any place where I can get information would be really helpful.

    Many thanks!
     
    #1 themaskedmedea, Mar 21, 2008
  2. Sheepdog

    Sheepdog C'Mere Sheepie!

    Joined:
    Mar 12, 2008
    1,125
    15
    9
    Location:
    Sanford FLorida
    Vehicle:
    2008 Prius
    Model:
    II
    I dont understand why you have to do that. What is the purpose?

    The car will be repaired and you will be back on the road.
     
    #2 Sheepdog, Mar 21, 2008
  3. EJFB1029

    EJFB1029 New Member

    Joined:
    Jan 16, 2008
    4,726
    206
    0
    Location:
    Corpus Christi, Republic of Texas
    Vehicle:
    2008 Prius
    Doesn't make sense to me either, they fix to like new condition, doesn't matter what the car is worth, unless it were to be totaled.
     
    #3 EJFB1029, Mar 21, 2008
  4. Bob64

    Bob64 Sapphire of the Blue Sky

    Joined:
    Apr 9, 2007
    1,540
    92
    0
    Location:
    Virginia
    Vehicle:
    2007 Prius
    Model:
    N/A
    Its incase he wants to sell the car later. I'll show that its been in an accident.
     
    #4 Bob64, Mar 21, 2008
  5. w4y

    w4y Junior Member

    Joined:
    Oct 15, 2007
    43
    4
    0
    Actually, I have to contend that asking for depreciation compensation is entirely fair, especially since it's pretty much a new car and the accident was not the OP's fault.

    What if the OP wants to sell his car a few years down the road? All things being equal, a buyer will choose the car that has not been in an accident over that which was in an accident. Market capitalism forces one to depreciate the cost of the car due to the stigma that a car that's been in an accident has. The OP should be compensated for this discrepancy.
     
    #5 w4y, Mar 21, 2008
  6. Sheepdog

    Sheepdog C'Mere Sheepie!

    Joined:
    Mar 12, 2008
    1,125
    15
    9
    Location:
    Sanford FLorida
    Vehicle:
    2008 Prius
    Model:
    II
    again I fail to understand.

    why in the world would anyone sell their Prius after finding one? :eek:
     
    #6 Sheepdog, Mar 21, 2008
  7. themaskedmedea

    themaskedmedea New Member

    Joined:
    Jan 17, 2008
    7
    0
    0
    Location:
    Miami
    Vehicle:
    2008 Prius
    It's about loss of value to my property. I 100% do not plan on selling this car. I plan on driving this car for as long as its driveable.

    HOWEVER, it did lose value. Once the car is in an accident, it depreciates significantly, especially since it is a like-new car.

    A depreciation claim is when the insurance company pays out the difference in the car's value pre- and post- accident. For most cars older than a year, the amount of depreciation is not worth the amount of time and effort to get the depreciation pay-out from the company.

    However, let's suppose something comes up -- whatever it might be, like I become ill or I get laid off from my job -- if I go to sell my car, I'm upside-down in my car note now because I can't sell my car for it's actual value. So I'll end up $1,000 or $2,000 under all because of this accident that wasn't my fault.

    So a depreciation pay-out covers that so that when/if the depreciation affects my re-sale value.

    And it won't be like new. I'll always know some careless person ruined my car.

    And I'm a she ;)
     
    #7 themaskedmedea, Mar 21, 2008
  8. mrfish67

    mrfish67 New Member

    Joined:
    Dec 13, 2007
    8
    0
    0
    Location:
    Los Angeles
    Vehicle:
    2008 Prius
    I look forward to hearing more opinions about depreciation compensation as well, since my previous car, a 2001 Accord, was rear-ended by somebody 364 days after I bought it, and I lost value when trading it in for my new Prius (to the tune of thousands of dollars, sorry to say).
     
    #8 mrfish67, Mar 21, 2008
  9. diamondlarry

    diamondlarry EPA MPG #'s killer

    Joined:
    May 20, 2007
    559
    12
    0
    Location:
    Elkhart, IN
    Vehicle:
    2007 Prius
    If the OP wants to trade it in for a newer model in a few years, the car will be worth much less if it has been in an accident.
     
    #9 diamondlarry, Mar 21, 2008
  10. Sufferin' Prius Envy

    Sufferin' Prius Envy Platinum Member

    Joined:
    Jul 7, 2004
    3,998
    18
    0
    Location:
    USA
    Vehicle:
    Other Non-Hybrid
    Since "His insurance company is taking full liability" . . . ask YOUR insurance company to supply you the information for the depreciation in value.

    If you do the work and HIS insurance company says the figure is too high, they won't pay that amount. If you are low, they will gladly pay what you asked.

    Your insurance company knows exactly what that magical figure is. HIS insurance company won't argue a figure supplied by your insurance company.
     
    #10 Sufferin' Prius Envy, Mar 21, 2008
  11. volcomholls

    volcomholls Junior Member

    Joined:
    Dec 12, 2007
    28
    0
    0
    Location:
    Wilmington, NC
    Vehicle:
    2024 Prius
    Model:
    XLE
    WOW! this sounds exactly what i am going through. i bought my prius (after waiting a month for it) in october, and a little over 2 months later some jerk backed into it with a 20ft flat bed trailer while i was at work. i'm thankful that he came in to let me know, but he was a complete jerk about it. the rental car company driver told me about asking his insurance company for depreciation compensation, so i did after the nightmare of having it fixed (a whole other story!!!! make sure they put NEW parts on your car - i got "remanufactured" after being lied to, and inconvienced for taking my car back 3 times).

    anyway, the insurance adjuster i was assigned to acted like he didn't know what i was talking about when i asked for compensation - hello! it was completely not my fault, its BRAND new, and now has body work. he told me to send a letter stating why i think i should be compensated, then they would contact me about proving the depreciation. two months later, i have not heard back. i am going to contact that adjuster again soon, circumstances have prevented me from being on top of it recently (i've been too busy putting 10k+ on my prius in less than 6 months now!)

    please let me know how your research goes!!! contacting my insurance agent sounds like a good idea - i didn't file the claim through them at all because i didn't want to have to fight to get back my deductible.
     
    #11 volcomholls, Mar 21, 2008
  12. kayak_hauler

    kayak_hauler New Member

    Joined:
    Mar 5, 2008
    48
    0
    0
    Location:
    San Diego
    Vehicle:
    2008 Prius
    Very good idea, you should be the one having to do this leg work anyway...
     
    #12 kayak_hauler, Mar 21, 2008
  13. JimN

    JimN Let the games begin!

    Joined:
    Nov 26, 2006
    7,028
    1,116
    0
    Location:
    South Jersey
    Vehicle:
    2010 Prius
    Model:
    V
    Why not ask for an appraisal on the Toyota dealer's letterhead?
     
    #13 JimN, Mar 21, 2008
  14. patsparks

    patsparks An Aussie perspective

    Joined:
    Jul 12, 2007
    10,664
    567
    0
    Location:
    Adelaide South Australia
    Vehicle:
    2004 Prius
    Model:
    N/A
    These are the things you pay your insurance company to do.

    I'm not sure if "deductable" is like our "excess"? Excess is a gap payment determined when you take out the policy that is the difference between what the insurance pays out and the cost of repair. If your car is damaged and it is your fault you pay the "excess" to the repairer when you pick up the car. If the accident isn't your fault there is no excess to pay. For this reason I am not sure why you would "have to fight to get back my deductible."
     
    #14 patsparks, Mar 21, 2008
  15. themaskedmedea

    themaskedmedea New Member

    Joined:
    Jan 17, 2008
    7
    0
    0
    Location:
    Miami
    Vehicle:
    2008 Prius


    I would threaten to call a lawyer but you need to do it quickly. There are very often statute of limitations on these kinds of things, and once the time passes, it's gone!

    Also, go Noles :)
     
    #15 themaskedmedea, Mar 22, 2008
  16. themaskedmedea

    themaskedmedea New Member

    Joined:
    Jan 17, 2008
    7
    0
    0
    Location:
    Miami
    Vehicle:
    2008 Prius


    Unfortunately, it seems to me like all I do is pay my insurance company to rip me off. Our family has five cars and five drivers, and I can't even begin to tell you the insurance company horror stories. It this is with a major, reputable insurer.

    It sounds to me like "deductible"="excess". But I don't have to pay a deductible/excess and that's not what I'm trying to get from the company.

    I'm trying to get what is called a Depreciation or Diminishment of Value payment. I don't know how it works in the AU, but in the US if a car has been in an accident that diminished the cash value of the car.

    So, IE, let's imagine a hypothetical person who drives a 2007 Car X and gets into an accident. This accident is recorded and noted if she goes through the police and the insurance company on a Car Fax report based on the VIN number of the car. Then two years later, this person decides to trade in or sell her 2007 Car X for a 2009 Car X. The buyer -- whether it's the dealer or a private buyer -- runs a Car Fax report using the 2007 Car X's VIN number and sees it's been in an accident. So the buyer won't pay as much for 2007 Car X as he would for the same exact car that had not been in an accident.

    In other words, as someone else in this thread said, "A car that has been in an accident is worth a lot less than the exact same car that has not been in an accident." Ceteris paribus, the car that was damaged and repaired is worth substantially less than the car that wasn't.

    So if, for instance, the 09 Prius comes out and I love it and must have it immediately, and I want to trade in my 08 Prius for it, my trade-in value will be substantially less than my car note is now because the dealer will lower the trade-in I'm given due to the accident.

    A Depreciation Payment from the other driver's insurance company is supposed to compensate me for the difference in my car's value pre- and post- accident, so that way if I do in the future decide to sell or trade in my car for another vehicle, I will not be upside-down in my note. In other words, I won't have to take a financial loss for the other guy's stupid mistake.

    That being said, I really appreciate all the advice. I'm going to call my insurance company and see what they say. I'm also going to do more research on this issue. When I talk to the insurance company on Monday, I'll let you folks know what they say.

    Appreciate the help!
     
    #16 themaskedmedea, Mar 22, 2008
  17. volcomholls

    volcomholls Junior Member

    Joined:
    Dec 12, 2007
    28
    0
    0
    Location:
    Wilmington, NC
    Vehicle:
    2024 Prius
    Model:
    XLE
    themaskedmedea - did you ever get anywhere with this claim?? i never did. called the at fault driver's insurance plenty of times, and was ignored repeatedly by my adjuster. finally, randomly, a few weeks ago i recieved a letter from his insurance - pretty much saying i need to go out and do all my own research to prove this amount of depreciation, only for them to go back and investigate all my actions, and then make their decision. i have since moved to a different state, and am attending a very time consuming graduate program, so i'm not going to try to fight it. my missouri agent isn't going to help me fight something that happened when i had my florida policy, i'm sure. at least my prius still looks good, i don't plan on selling her anytime soon :)
     
    #17 volcomholls, Jul 10, 2008
  18. ravenmaniac

    ravenmaniac Senior Executive VP of Nothing

    Joined:
    Dec 5, 2007
    156
    8
    0
    Location:
    DC Metro Area
    Vehicle:
    2005 Prius
    Re: 2005 Prius Seaside Blue Pearl #3, Carpool Sticker, SoCal
    Quote:
    Originally Posted by ravenmaniac [​IMG]
    WOW! Sounds like a GREAT deal, NOT!!!:nono: My 2005 Package#6 was less than this price brand new. Get real!

    Drift Motion's Response:
    come to SoCal and u'll know whats up
    check the local papers/craigslist/autotrader

    ppl asking 30k+ for a base model 05 with 50+k

    Above is the response I got when I told the OP his car was too high. This was before he said the F word a few times and the moderators pulled his other comments down. :fear:Thank God for the moderators!

    When you are ready to sell it, go to California where there are no hybrids available (according to various posters in the SoCal area). It seems that they will pay above and beyond what you paid for it when you bought it, even if it's a few years old. Then, you might be the one paying the insurance company a negative depreciation to sell the car (that is a joke!).

    In all seriousness, I hope you are compensated well for the depreciation and your time invested in this. Good luck! I hope you don't have to duke it out too long:boxing:before you get your $$$.
     
    #18 ravenmaniac, Jul 11, 2008
  19. echase

    echase New Member

    Joined:
    Sep 25, 2006
    227
    6
    0
    Contact the office of your state's insurance commissioner if you are not being treated fairly. Put your tax dollars to work. (This can be more effective than a lawyer.) Also, don't "threaten" to do this, that just gives them time to mount a defense. Just do it.
     
    #19 echase, Jul 11, 2008
  20. YoDaddyAlex

    YoDaddyAlex Member

    Joined:
    Dec 19, 2006
    271
    4
    0
    Vehicle:
    2014 Prius
    Model:
    Five
    the reason for the markup is because that car has carpool lane stickers which are not available any longer.
     
    #20 YoDaddyAlex, Jul 11, 2008
(You must log in or sign up to post here.)
Page 1 of 2