There are way too many different ways it could go for me to be confident in my answer.
One aspect: insurance companies are obligated to repair your vehicle to pre-loss conditions. No more, no better. If your vehicle isn’t worse because of the accident they may not pay anything. It’d be like you got in a car accident but your vehicle wasn’t damaged.
Another way to handle it would be to take the unrelated prior damage out of the amount you’re paid. If, let’s say, the prior damage is $300 out of the thousand quoted, you may be cut a check for $700.
As for DV, usually it isn’t a first party coverage. You’d have to claim that on the other party’s insurance. Each insurance company has their own policy for such. It isn’t enough to just say, “my car is worth less now. Pay me.” You’d have to be able to show exactly how diminished your vehicle’s worth is because of the loss.
In Georgia, at least, one does not need specifc DV coverage:
This makes sense, since the purpose of insurance is to make one whole after an accident, and accounting for diminished value due to the accident is as much a part of making one whole as the damage itself.
Well I didn’t get the answer I wanted from my agent’s able assistant.
First, to answer the question above… the check was written by my insurance company and made payable to me and the body shop. There is a lien on the vehicle but that seems not to have come into play.
As for the answer… my contact said that if I didn’t repair the vehicle and kept the money I would have to take the collision and comprehensive coverage off the vehicle. Its a 2013 Accord so I’m definately not going to do that.
I asked her if that was an AutoOwners rule or standard and she said standard…at least in Michigan.
The insurance company will not write a check in your name exclusively if you have an outstanding car loan. You need to repair your car. Age of the vehicle notwithstanding, you **cannot **drop collision and comprehensive coverages while you have a car payment. If you try, your lender will buy (quite expensive) insurance in your name and charge you for it.
Just to make this absolutely clear: when a lender is involved, you are not the only stakeholder in the value of your vehicle. Your lienholder has a financial interest in the car until you pay it off. You do not have a choice but to fix it. Pocketing the check is not a good idea unless your car is paid off–and even then, Michigan may not allow this due to their wonky no-fault PD coverage.
Gotcha…for some reason when a lienholder was mentioned I thought that the check would be made out to me and it. Now it makes more sense that the second party involved would be the body shop who can indirectly serve the lienholder’s interest.