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Diminished Value of Vehicle after Wreck (1 Viewer)

Ray Karpis

Ray Karpis

Footballguy
I was in a wreck a few months back...fault of the other driver. I filed a claim on his insurance, and they took care of all repair costs, rentals, etc. Cost of repair was approx. $3500.

Following the repairs, I sent the repair invoice to my county assessor and asked them to take the wreck into account and reflect that on my new personal property tax assessment. I just got the new assessment and they attributed $4100 in LOST value to the vehicle. FMV went from 11,100 to about 7,000.

I frankly was surprised they assessed the lost value so high. I've heard from others having gone through this that it usually is a percentage (25-35%) of the repair cost. In this case, it exceeds the cost of repair.

In any event, I sent this information to the insurer and let them know I would be seeking $4,100 in damages in small claims court. They contacted me and offered $1,000.

I honestly think $1,000 is probably in the ballpark, but obviously they have room to go up if that was their initial offer. I think I have some leverage given the county assessor's number, though I seriously doubt its accuracy.

Anyone been through this before? What would you counter with? I'm interested in getting a fair number...not interested in trying to get more than what I'm entitled to. The truck looks better than before the wreck.

TIA.

 
avoiding injuries said:
Ray Karpis said:
shadyridr said:
Ray Karpis said:
Chadstroma said:
Wait.... you have a personal property tax assessment?
Click to expand...
We pay annual tax on vehicles, boats, etc....you don't?
Click to expand...
huh?
Click to expand...
Thanks for focusing in on the important details, guys.
Click to expand...
This is the important detail. Where are you?
Click to expand...
It is important! Two reasons: 1) None of us have had to deal with this so we can't help. 2) It is interesting to us because we (me?) have never heard of this before.

 
In Arkansas, we pay a local tax on personal property (household furnishings, clothing, etc. are exempt). Generally only applies to vehicles, boats, motorcycles, etc. A local tax rate is applied to the "assessed value" of the vehicle - which is 20% of the FMV.

ETA:

So a $20,000 vehicle would have an assessed value of $4,000, and I might pay 3% annually on that amount - $120. That tax generally is used for county infrastructure.

 
Last edited by a moderator:
A lot of southern states have these taxes and when you look at the types of taxes the personal property tax replaces, their implementation is quite progressive. There's a tax on luxuries, not necessities. That being said, it sounds insane to someone who has lived in NY his entire life.

Instead of a tax on milk, people pay taxes on yachts.

 
In MO, we have this same thing. I'm not sure why you're looking to get more money if your vehicle got fixed. It looks like you've already "won" by getting a decent break on your personal property tax. If the insured company is somehow willing to give you an extra $1000 to put in your pocket, which I don't think you're owed if they fixed your vehicle to the state it was before (and possibly better), then why be greedy and ask for more? Take that money and be done with it.

Am I missing something here?

 
I don't think this is different than registration costs. Our annual registration cost is based on vehicle value. We owe about $550 on tags for my wife's car. If it had been wrecked, I could see trying to get them to adjust it downward.

 
Nugget said:
I don't think this is different than registration costs. Our annual registration cost is based on vehicle value. We owe about $550 on tags for my wife's car. If it had been wrecked, I could see trying to get them to adjust it downward.
Click to expand...
Is that per year? If so, holy christ.

 
Chadstroma said:
avoiding injuries said:
Ray Karpis said:
shadyridr said:
Ray Karpis said:
Chadstroma said:
Wait.... you have a personal property tax assessment?
Click to expand...
We pay annual tax on vehicles, boats, etc....you don't?
Click to expand...
huh?
Click to expand...
Thanks for focusing in on the important details, guys.
Click to expand...
This is the important detail. Where are you?
Click to expand...
It is important! Two reasons: 1) None of us have had to deal with this so we can't help. 2) It is interesting to us because we (me?) have never heard of this before.
Click to expand...
x2
 
Nugget said:
I don't think this is different than registration costs. Our annual registration cost is based on vehicle value. We owe about $550 on tags for my wife's car. If it had been wrecked, I could see trying to get them to adjust it downward.
Click to expand...
my range rover in az was 1150 per year and I bought it used....
 
Ray Karpis said:
In Arkansas, we pay a local tax on personal property (household furnishings, clothing, etc. are exempt). Generally only applies to vehicles, boats, motorcycles, etc. A local tax rate is applied to the "assessed value" of the vehicle - which is 20% of the FMV.

ETA:

So a $20,000 vehicle would have an assessed value of $4,000, and I might pay 3% annually on that amount - $120. That tax generally is used for county infrastructure.
Click to expand...
do you have state tax, sales, tax property tax, etc? That is crazy. Is this an honor system kind of thing as well? The state tax return must be a nightmare!
 
Nugget said:
I don't think this is different than registration costs. Our annual registration cost is based on vehicle value. We owe about $550 on tags for my wife's car. If it had been wrecked, I could see trying to get them to adjust it downward.
Click to expand...
wtf? In NY registration costs are $135 every two years
 
shadyridr said:
Nugget said:
I don't think this is different than registration costs. Our annual registration cost is based on vehicle value. We owe about $550 on tags for my wife's car. If it had been wrecked, I could see trying to get them to adjust it downward.
Click to expand...
wtf? In NY registration costs are $135 every two years
Click to expand...
I registered a new car to NJ last year and paid something that for 4 years.

 
shadyridr said:
Nugget said:
I don't think this is different than registration costs. Our annual registration cost is based on vehicle value. We owe about $550 on tags for my wife's car. If it had been wrecked, I could see trying to get them to adjust it downward.
Click to expand...
wtf? In NY registration costs are $135 every two years
Click to expand...
yeah maybe NJ does some stuff right? My registration is 65 bucks a year :unsure:

 
belljr said:
shadyridr said:
Nugget said:
I don't think this is different than registration costs. Our annual registration cost is based on vehicle value. We owe about $550 on tags for my wife's car. If it had been wrecked, I could see trying to get them to adjust it downward.
Click to expand...
wtf? In NY registration costs are $135 every two years
Click to expand...
yeah maybe NJ does some stuff right? My registration is 65 bucks a year :unsure:
Click to expand...
registration fees and gas taxes. Hell yeah nj.
 
It's a southern thing. Much more expensive to get car registration there than elsewhere. OTOH, instead of paying $12K a year on property taxes, you pay $600.

 
Last edited by a moderator:
sbonomo said:
Ray Karpis said:
In Arkansas, we pay a local tax on personal property (household furnishings, clothing, etc. are exempt). Generally only applies to vehicles, boats, motorcycles, etc. A local tax rate is applied to the "assessed value" of the vehicle - which is 20% of the FMV.

ETA:

So a $20,000 vehicle would have an assessed value of $4,000, and I might pay 3% annually on that amount - $120. That tax generally is used for county infrastructure.
Click to expand...
do you have state tax, sales, tax property tax, etc? That is crazy. Is this an honor system kind of thing as well? The state tax return must be a nightmare!
Click to expand...
Not an honor system...you have to assess (basically calling or confirming online the vehicles you own) each year before May 15. You can't renew your car tags if you haven't assessed for the current year.

 
gianmarco said:
In MO, we have this same thing. I'm not sure why you're looking to get more money if your vehicle got fixed. It looks like you've already "won" by getting a decent break on your personal property tax. If the insured company is somehow willing to give you an extra $1000 to put in your pocket, which I don't think you're owed if they fixed your vehicle to the state it was before (and possibly better), then why be greedy and ask for more? Take that money and be done with it.

Am I missing something here?
Click to expand...
A guy hits your car and diminishes its value because you now own a wrecked vehicle (even if repaired)...why would you not be entitled to be compensated for that?

It's akin to lost income wages in a PI case. Just paying medical bills doesn't make the injured pay whole.

 
I don't see how you were damaged by what essentially is the book value loss of your vehicle. You may never realize that loss. Plus, you are receiving an actual benefit in the tax relief.

 
Ray Karpis said:
gianmarco said:
In MO, we have this same thing. I'm not sure why you're looking to get more money if your vehicle got fixed. It looks like you've already "won" by getting a decent break on your personal property tax. If the insured company is somehow willing to give you an extra $1000 to put in your pocket, which I don't think you're owed if they fixed your vehicle to the state it was before (and possibly better), then why be greedy and ask for more? Take that money and be done with it.

Am I missing something here?
Click to expand...
A guy hits your car and diminishes its value because you now own a wrecked vehicle (even if repaired)...why would you not be entitled to be compensated for that?

It's akin to lost income wages in a PI case. Just paying medical bills doesn't make the injured pay whole.
Click to expand...
But it's not akin to the loss of wages. Wages are real dollars.

 
Christo said:
I don't see how you were damaged by what essentially is the book value loss of your vehicle. You may never realize that loss. Plus, you are receiving an actual benefit in the tax relief.
Click to expand...
I disagree that entitlement to compensation hinges on whether I actually realize the loss.

Christo, you're a lawyer...in you're experience do insurance adjusters typically offer to pay something they have no legal obligation to pay? They didn't even question it. The adjuster told me on the phone, "we know we owe you something, but we think $1000 is fair."

 
Christo said:
Ray Karpis said:
gianmarco said:
In MO, we have this same thing. I'm not sure why you're looking to get more money if your vehicle got fixed. It looks like you've already "won" by getting a decent break on your personal property tax. If the insured company is somehow willing to give you an extra $1000 to put in your pocket, which I don't think you're owed if they fixed your vehicle to the state it was before (and possibly better), then why be greedy and ask for more? Take that money and be done with it.

Am I missing something here?
Click to expand...
A guy hits your car and diminishes its value because you now own a wrecked vehicle (even if repaired)...why would you not be entitled to be compensated for that?It's akin to lost income wages in a PI case. Just paying medical bills doesn't make the injured pay whole.
Click to expand...
But it's not akin to the loss of wages. Wages are real dollars.
Click to expand...
I agree with that...but if I trade my vehicles every 3 years, should I have to wait until I trade it in and realize the loss to make the claim? SOL now becomes an issue.

 
Ray Karpis said:
Christo said:
I don't see how you were damaged by what essentially is the book value loss of your vehicle. You may never realize that loss. Plus, you are receiving an actual benefit in the tax relief.
Click to expand...
I disagree that entitlement to compensation hinges on whether I actually realize the loss.

Christo, you're a lawyer...in you're experience do insurance adjusters typically offer to pay something they have no legal obligation to pay? They didn't even question it. The adjuster told me on the phone, "we know we owe you something, but we think $1000 is fair."
Click to expand...
No. I understand some states allow diminished value claims. Doesn't mean I have to agree.

 
Gawain said:
A lot of southern states have these taxes and when you look at the types of taxes the personal property tax replaces, their implementation is quite progressive. There's a tax on luxuries, not necessities. That being said, it sounds insane to someone who has lived in NY his entire life.

Instead of a tax on milk, people pay taxes on yachts.
Click to expand...
So the deepest red states have the most progressive tax system is what you are saying.

 
Christo said:
I don't see how you were damaged by what essentially is the book value loss of your vehicle. You may never realize that loss. Plus, you are receiving an actual benefit in the tax relief.
Click to expand...
This is where I am too. The fact you were surprised by what the assessor's office came back with tells me you didn't expect much of a decrease either based on the initial damage and subsequent repair. I had something similar in Florida many years ago and insurance was only responsible for getting the vehicle to its previous state, not restoring it to the full value. Reading Christo's link about state variation, I see why now. If your state allows it, then go for it, but if your truck is in better shape, you're getting a tax break, and they are offering to give you more to make you whole, then that seems like a good deal to me. If you want to ask for more, go for it, but there's simply no way anyone here can answer how much more to ask without any kind of specifics (year, make, model, mileage, actual damage, etc.).

 
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