DIMINISHED

You wrote: When dealing with a 3rd party's insurance company, there is no contract defining the telationship. In that case, state law "defines" what is allowed.

There is no state law in any state that deals with third-party diminished value, only first-party diminished value.

Third-party diminished value is allowed simply because the liability portion of the responsible driver's insurance company agrees to compensate you for the loss.

Since this isn't an automobile forum, I'm not surprised at all of the misleading replies.

1) You can not claim diminished value through your own insurance company.

2) Presenting a letter from a body shop or dealer doesn't work. First, it tells Allstate that you are too cheap to hire an appraiser and, therefore, aren't any threat to sue them. Also, they will tell you that your dealer is interested in buying your car as cheaply as possible so they will ignore that letter altogether.

3) The poster who only got $1,500.00 in diminished value probably accepted the insurance company's first offer. If you want to receive a fair settlement amount, you need to be a fighter. Persistence pays when it comes to dealing with insurers. Complaints to the insurance department for unfair claim practices work well as do letters from your attorney. A sympathetic magistrate may very well award the full diminished value (if you've hired a good appraiser,) and require the insurer to pay your appraiser's and legal fees as well.

Answers and some thought about the previous messages.

First, State Farm is being nice to you about the repair, a car rental, etc. because they have to accept responsibility by law. Diminished value is another matter altogether. Expect State Farm to start playing hardball. Diminished Value is a relatively new loss category and insurance companies are fighting tooth and nail to keep people in the dark. Notice that your own insurance agent, who had nothing to lose, didn't advise you of your right to claim diminished value against the other carrier.

booziebadazz' advice, "Go to the manager of the place you bought the truck from and ask him to write a letter," nine out of ten times a dealer quote will not fly because the insurer will claim that the dealer gave a high DV amount because they have a vested interest in buying the car cheap.

Motorboat's advice to ask a body shop to write up a report will simply result in State Farm telling you that body shops aren't experts in loss of value, that they simply repair cars. In any event, I doubt if many body shops would even consider writing such a letter.

meansonny's comments were right on the money except for your obtaining letters from dealers. State Farm will surmise that you went to numerous dealers and cherry-picked the highest quotes.

You should obtain a diminished value appraisal from an independent appraiser who holds an appraisers license in any state. Stay away from "certified" or "accredited" types who simply pay a yearly fee for their designation. State Farm will disqualify them as non-experts. A licensed appraiser has much to lose by preparing a fraudulent or overinflated report.

Hire an independent appraiser (and not a $39 special) who obtains at least six verifiable dealer quotes from dealers in your area. There are appraisers that simply use formulas or "algorithms" to establish DV and yet others that use auction results. State Farm has it's own formula and you can bet that it is at odds with whatever formula your appraiser used. As for auction results - better, but State Farm can wiggle off the hook by saying that the auction cars don't have the same options, mileage, etc. as yours nor did they suffer the same damages.

Last, if your report is comprehensive and can't be refuted, State Farm's defense attorneys will advise the adjuster to pay up but not before stringing you along with BS low ball offers. Hang in there. The last place State Farm wants to go with this is small claims court.