You received the settlement offer from the insurance company and are shocked, angered, or depressed at how small it is. It is a bad offer for your diminished value claim.
The insurance company is refusing to pay for the financial damage their driver has caused. So now what can you do?
Unfortunately, it’s in the insurance company’s interest to give you a low-ball offer. The less they pay you, the more money they keep for themselves and their shareholders. They often make it difficult to get a good offer, knowing that many people will just give up. Most people don’t have the knowledge to fight back against the insurance company, but because you’re reading these Car Crash Kit articles, you do!
You’re going to write another letter.
Remind them of all the applicable laws that they are disregarding, including the Arizona Unfair Claim Settlement Practices Act, Arizona case law and the Restatement (Second) of Torts). (See previous articles here and here.) Feel free to use the same verbiage from the previous letter you wrote.
Remind them that “if your company continues to violate the Unfair Claim Settlement Practices Act, then I will be forced to file a complaint with the Arizona Department of Insurance.”
State that this is a Second Request. This gives a clear paper trail of documentation that you are going through the proper process.
Now give a Counteroffer. Your counteroffer should include documentation from the dealership, who gave you a trade-in value before the collision, and a trade-in value after the collision. (See, previous article here.)
Let’s say, for example, the diminished value is $1000. Then you would use this verbiage:
“I am making a one-time, non-renewable counter settlement offer of $1000 (one thousand dollars) to settle this claim.”
End the letter with this verbiage:
“Finally, this letter and all attachments are submitted solely for the purpose of settlement negotiations and not by way of any admissions against interest. I therefore submit it only on the condition that all the materials attached with it will not be used in the event the matter is tried before a judge or jury.”
This helps protects you against the insurance company using it in case your claim becomes a lawsuit and you need to hire an attorney to represent you in court.
If you’d like some help going through this process, a Car Crash Kit can provide you with form letters that include relevant Arizona case law and statutes. Also, included in your Car Crash Kit will be directions, suggestions on how to respond to common insurance company arguments, and how to settle your diminished value claim after you receive a fair settlement offer. The cost for a Car Crash Solo is only $19 and can help you recover hundreds to thousands of dollars more in compensation.
To see if your property damage qualifies for diminished value compensation just take our Free Quiz below.
Legal Disclaimer: This article provides general information and should not be taken as legal advice. This article is an advertisement.