Auto insurance question - "diminished value"
We bought a brand-new 2012 Toyota RAV4 about 2 months ago. After only having it for 4 weeks, it was rear-ended. It's currently in the shop getting about $6000 worth of repairs to the back end, with no frame damage or other issues of which we're aware. The other party's insurance carrier is paying all costs, including a rental.
I was discussing our car situation last night with a friend, and they mentioned that we should check into a diminished value claim for our vehicle. I read up on it, and it sounds sketchy.
Since the shop is using all new parts for repairs, PLUS the fact that we plan on keeping the RAV4 for as long as it will run (and purchased a 7-year super-deluxe extended warranty for now), it seems that a diminished value claim is just trying to milk the insurance company for more money and would be more trouble than it's worth. If they were using secondary parts to repair it, I guess I would consider it. Is diminished value really applicable to our situation?
|