Digital: You are blessed with an unusually good insurance company.
That second check is for something called "Diminished Value".
It is the loss in value of the repaired vehicle on subsequent sale or trade-in due to the fact that it has a damage history now. When you go to trade that vehicle in on a new one, or just to sell it outright to an informed dealer or buyer, they will either detect the repair, or find it via a vehicle VIN history. Market data suggests that all dealers and many private buyers will offer less for a vehicle that has been damaged and repaired, as they can never be certain that the damage (a) was fully properly repaired, and (b) that it had no redisual effect on the vehicle`s performance or corrosion resistance.
Diminished value is being argued in the courts right now by insurance companies versus states and consumer groups. Most insurance companies take the stance that their only obligation is to repair the damage, NOT compensate you for any diminished value. Their argument is that if the repair is done properly, there SHOULD be nor diminsihed value, and if it was not done properly, you can and should inists on correction.
The states and consumer groups are arguing that you as a consumer aren't likely to be able to know and enforce a perfect repair, that dealers and buyers DO in actual fact offer less when they realize a vehicle has been damaged, and that in any case, the purpose of insurance is NOT just to repair, but to compensate for loss of value. They cite for exmaple that if you lose a detached garage on your home property as a result of a storm, you have lost some property value, and the insurance company compensates you for that loss. When you go to a trade your repaired vehicle in, the dealer WILL offer you less for it mrely because it was dmaaged and repaired, as he claims that buyers will likewise offer less to HIM because of it.
In the course of 35 years of car ownership, I have had several vehciles damaged and repaired. On trade in or sale to a dealer, EVERY single one of those has suffered a reduced offer from the dealer identified specifically as because it has been damaged and repaired. I am actually a plaintiff in a class action suit against an isnurance company, seeking diminished value compensation for a Honda Civic that was damaged and repaired. That Honda was a very interesting case.
That 3 month old Honda was damaged severely by a hailstorm in North Dakota. It suffered $4000 worth of damage. In the course of repairing it, the body shop had to cut the sheet metal off the roof using a cutting tool that generated sparks. The sparks started a fire in the back seat, further damaging the vehicle! The body shop was NOT going to tell me about the fire. I fou d out when I unexpectedly "dropped in". The insurance adjustor made them do replacement versus repair on a number of components that were damaged. They subsequently failed the adjustor's inspection for quality of body work, and were told to start over again, at their cost. You can imagine how "deidcated" and "careful" they would be on doing the repairs a second time on their nickel.
After I got the car back, I kept it only less than a year, and sold it outright to a Honda dealer (not a trade, so the price was "real"). He plainly told me he was offering me $1000 less on a car with an $11,000 street value because of the damage.
In another case, my 3 WEEK old Nissan Altima was hit by a deer that waited until I was abreast of him at night and then jumped from the shoulder of the road literally into the SIDE of the car! He did $3200 damage. That car was sold outight 1 year later and again the dealer told me plainly he was giving me $800 less than the $17000 he would have otherwsie because of the repaired damage.
Digital, yo should ENSURE that you keep photos of the damaged SSR (maybe even Buffy's photo from the Atlanta gathering), so that at sale time you can dismiss a buyer's concerns by SHOWING him how slight the damage was. otherwise, he will assume the worst.
And, if you owe money on the SSR, apply that second check right away to the outstanding balance, as you WILL lose that $800 (or more on such a costly vehicle) ahen you sell. (Compare that $800 as a PERCENT to my Honda and Altima above)
Jim G
