Repairs after car accident reduce value, reader fears
Q: Recently, my 2004 Toyota Sienna was struck from behind at a red light.
My repairs are estimated at $10,000. I'm told this represents 72 per cent of its value, so the full value calculates out to about $14,000.
My insurer says I can take the cash value of the estimate instead of fixing it and then replace my vehicle accordingly. However, even if fixed, I fear the market value is now far less than prior to the crash.
I'm estimating a $3,000 to $4,000 reduction in resale value because of this accident.
Do I have any recourse to reclaim this financial loss?
A: James Geuzebroek, manager of media relations for the Insurance Bureau of Canada, replies:
This reader takes for granted that the value of the car is diminished post-repair, but not everyone accepts that premise. A well-repaired vehicle should be worth the same as it was before the accident. If not, then perhaps it's worth a few hundred dollars less or perhaps a few thousand dollars less. Who knows? If the owner took the opportunity to make a few upgrades at the time of repair, it might even be worth more afterward.
The challenge for the owner is proving that a car is, in fact, worth less after the collision and repair, and then being able to peg a particular dollar figure – in a manner acceptable as evidence in a court of law – to that diminished value.
Q: Further to a past response on red-light cameras: The driver of one of my vehicles got a $180 red-light camera ticket for entering the intersection after the red signal had been displayed for 1.4 seconds.
Does the penalty vary based upon the time differential involved?
Also, if the driver decides to dispute the charge, wouldn't this now identify the driver and thereby allow the auto insurer to increase his or her rates if convicted?
A: James Geuzebroek, manager of media relations for the Insurance Bureau of Canada, replies:
No, as stated previously, insurance rates aren't affected by red-light camera tickets since these don't identify the driver. Insurers don't change this position simply because the matter went to court. It would be the vehicle owner, not necessarily the driver at the time of the infraction, who received and is now fighting the ticket.
Eric Lai adds:
Officials advise that red-light cameras allow a time lag of one-tenth of a second before they start clicking away. Beyond that, all violators get the same ticket and penalty.
If a police officer is present however, a whole host of charges are possible based on the driver's specific actions for a red light at intersection.
Q: What happened to "green" plates planned for eco-friendly autos?
A: Ontario Transportation Ministry spokesperson Bob Nichols replies:
To reward early adopters of plug-in hybrid and battery electric vehicles, the Ontario government will introduce a unique green vehicle licence plate next year.
It will provide recognition to electric vehicle purchasers and allow them to use Ontario's High-Occupancy Vehicle (HOV) lanes for a limited time, until 2015, even with just one person in the vehicle.
Eric Lai adds:
Drivers of green-plated vehicles will also have access to public recharging facilities at select Ontario government and GO Transit parking lots. Additionally, the University of Toronto and private companies, including Wal-Mart Canada, state they plan to designate priority parking spots for these vehicles.
Email your non-mechanical questions
to Eric Lai at wheels@thestar.ca.
Due to the volume of mail, personal
replies cannot be provided.
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