Why a Durham driver's diminished value claim went from $413 to $6,000

DURHAM, N.C. (WTVD) -- A Durham driver was frustrated because of an insurance claim. Everlene Turrentine was in a car accident that was not her fault and caused more than $20,000 worth of damage to her car. While the insurance company of the driver deemed at fault covered the repairs to her car, Turrentine filed a diminished value claim.

Diminished value claims are where the car's owner is compensated for the loss of value to their car after an accident. Turrentine filed a diminished value claim with the insurance company of the driver who hit her, USAA, but says she was lowballed.

"I'm fighting for how it's so much less now," she said to Troubleshooter Diane Wilson.

After her car was repaired, Turrentine had the dealership where her car was repaired give her an appraisal on her car's value after the accident. The dealership put in writing that if her car had a clean Carfax with no prior major repairs, the trade-in value per Blue Book would be $26,700. The current value after the accident is $15,500, which is an $11,000 difference. Turrentine's car had been in two previous accidents, but she said both caused minor damage and she was not at fault in either incident.

Regarding the diminished value claim she filed with USAA, she was sent a check for $417, which Turrentine did not accept.

"I reached out to you because I know that you can help in situations, and I know I needed it," she told Wilson.

Billy Walkowiak, Founder and CEO of Collision Safety Consultants, a licensed independent auto adjustor, said many drivers don't know about diminished value claims.

"I look at the year, make, model, mileage, and severity, and that kind of gives me an idea of what percentage of diminished value I'd be seeking, and when I saw it was only 400 bucks, I mean I knew that was way too low," he said. "Walkowiak charges a flat fee for drivers who hire him to handle their diminished value claims. In North Carolina, he said, "The statute says you can hire a competent, disinterested appraiser. Once that happens, the insurance company's removed from the claim and they must hire a competent distance appraiser, so it levels the playing field."

After Walkowiak got involved in Turrentine's claim, USAA went from offering her $417 for her diminished value claim to offering $6,000.

"I think really, they were trying to lowball me, you know, give me as least as possible, and once someone else became involved, the entire story turned around," she told Wilson.

USAA provided this statement: "We carefully evaluate all information for diminished value claims, including vehicle condition, prior accident history, and market assessments. If additional information is provided, either by a claimant or an independent appraiser, we review and adjust the offer accordingly. This process is standard for all insurance carriers operating in the state. Although we cannot share specifics on a particular claim due to privacy, we remain committed to handling claims fairly while providing the exceptional customer service that USAA is known for."

Walkowiak says many drivers don't know they have a right when it comes to diminished value claims. " Most people, once they get a check from the insurance company, they think that's it and they're done." He has this advice for drivers who don't want to file a diminished value claim on their own. "You want to make sure when you hire an appraiser that you talk to somebody you know, a lot of people will go online and get these little reports and it'll be an exorbitant amount of money and then get all excited about it, and then when they turn it into the insurance company, the insurance company says, no, you have to have an appraiser. So now they've paid for an online report that doesn't do much."

Turrentine says she is happy she did not accept the original offer from USAA of $413, as she is very happy with the $6,000 that Walkowiak got her for the diminished value claim. She said to Wilson, "I am very thankful to you for your services and to Billy for him reaching in. I am so thankful."

In North Carolina, you have three years from the date of the accident to file a diminished value claim. The accident has to be someone else's fault, and you have to go through the other driver's insurance company, not your own. The only time your insurance will cover diminished value is if the other driver is uninsured, and you know who that driver is. Walkowiak adds, "You can get diminished value on an uninsured motorist if someone hits you and they don't have the insurance. Your policy covers diminished value because there's someone to go after to indemnify the company. If it's a phantom vehicle or a hit and run, you cannot if they're underinsured."