Back in May, our truck got rear-ended by a company truck pulling a trailer with a skid steer. All the tires on their vehicle were bald, and the driver admitted fault to the police and to State Farm (SF). It took SF about 6 weeks just to get in touch with the policyholder and start the claim process.
The truck wasn’t totaled even though it had frame damage. They said it could be fixed. After the repairs, we picked it up, but it was making a rubbing noise when turning and reversing. We took it back to the shop, and they said it needed an alignment. Got it back, but the problem was still there. The shop manager told us he thought the rear axle was damaged but that SF wouldn’t authorize the repair because they said the damage couldn’t be linked to the accident (even though our truck is only 2.5 years old, has 40k miles, and no prior accidents).
SF asked us to take it to a mechanic and get an estimate. They also said the policyholder has a $25k coverage limit, and we’re already at about $20k in repairs. If the new repairs push it past $25k, we’d have to pay out of pocket or file an uninsured motorist claim with our insurance, which means covering a $1k deductible. We’re also looking into filing for diminished value since the truck has obviously lost value with all these repairs.
Should the truck have been totaled from the beginning? Did SF make a mistake?
Is it common to be left in a situation like this when you’re not at fault but the other driver’s coverage isn’t enough?
Has anyone taken legal action over diminished value? Was it worth it, and would it be against the other driver or SF?
We’re planning to talk to a lawyer, but we’d like to hear if anyone has gone through something similar. This whole situation has been frustrating.
$25k is the limit, and a lawyer probably won’t be able to help much. You should get your insurance involved. Even if you sue, you might not see any extra money.
Also, rear axle damage is pretty rare unless the impact was directly on the wheels or tires.
If the other driver’s policy only covers up to $25k, that’s all State Farm will pay. After that, you’ll need to either go through your own insurance or take legal action against the other driver for any extra costs.
The policy limit doesn’t determine whether the truck should’ve been totaled. That decision is based on the truck’s value. With a 2.5-year-old truck and 40k miles, it’s likely worth more than the $20k in repairs, so they chose to fix it instead of totaling it.
A lawyer won’t be interested, and you’re probably not going to get a diminished value claim for a truck that’s already 2.5 years old with 40,000 miles.
Just because you think the truck should’ve been totaled doesn’t mean it would be. Insurance companies use an ‘actual cash value (ACV) vs. repair cost’ calculation to decide if it’s a total loss. Depending on your state, there might be a specific threshold. If there’s no law, they could repair up to 100% of ACV.
If you end up filing a claim with your insurance (because of the other driver’s policy limit), you’d have to pay your deductible, but your insurer could still go after the full repair costs, including your deductible, through subrogation. You’d get the deductible back first.
You don’t need to worry about suing; your insurer will handle the process to recover the money if the limits are an issue. They’ve got experience with this.
No. Depending on your state, a vehicle is considered totaled when the cost of repairs reaches a certain percentage of the ACV. If your state doesn’t have a mandated threshold, it’s up to the insurance company. If your truck’s value is still higher than the repair costs, it won’t be totaled.
Sadly, yes. This happens a lot, and it’s frustrating.
I’m not an expert on diminished value claims, but good luck if you pursue it.