Been in a wreck? Make sure you ask for diminished value

YORK COUNTY, S.C. — A York County woman told Channel 9 she is upset after an insurance company offered her a low amount of money for the diminished value of her car after she was in an accident.

Robin Cagle’s 2019 SUV was rear-ended.

“My first time ever in an accident,” she told Action 9′s Jason Stoogenke. “It scared me.”

According to her paperwork, Cagle’s car had more than $6,600 in damage. The accident report confirmed that the other driver was at fault. Cagle said the other driver’s insurance company, Allstate, paid for the damage. But she also wanted diminished value to make up for her SUV being of lower value now.

“When you go to try and sell or trade your vehicle, there’s going to be a wreck history of it somewhere,” auto appraiser Billy Walkowiak told Stoogenke. “The older the vehicle, the higher the miles, the less the damage, the lower the diminished value.”

Since Cagle’s SUV was fairly new, she hired an appraiser who determined the vehicle was worth about $9,000 less because of the wreck. But, according to the paperwork, Allstate put the difference amount much lower at $1,250.

“I’m mad. I mean, my vehicle was perfectly fine before that, 22,000 miles worth x amount of dollars. Through no fault of my own, I get rear-ended and they’re like, yeah, tough luck, [$]1,200, here you go,” she said.

She told Stoogenke that she’s not sure what action she’ll take next.

Stoogenke contacted Allstate for comment but it did not respond in time for this report.

In North Carolina, if a driver and the insurance company disagree on how much the diminished value is, each party can hire an appraiser. The cost of an appraiser typically runs about $300-$500 and that expense comes out of your pocket. If an agreement cannot be reached, an outside party such as a judge is used to decide on a dollar amount.

In South Carolina, a driver can file a “property arbitration claim” with the clerk of court in the county where the wreck happened. The cost to file a claim is no more than $10.

In either state, a driver can file a complaint with the department of insurance or sue for diminished value.

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