Does State Farm Hurt the Diminished Value of a Car?

downWhat you’re about to read could very well end up being big insurance at its worst. If proven true in Federal Court the negative backlash of possibilities for State Farm Mutual Automobile Company, John Eagle Collision Center of Dallas, Texas, and 3M the adhesive manufacturer are huge. What’s the old saying? If you want it done right, do it yourself. The chances of an owner repairing a damaged vehicle themselves is slim and most likely unthinkable for most; but if you find yourself asking, does State Farm hurt the diminished value of a car they’ve received a claim on, it could have some people considering the unthinkable.

Diminished value – the difference between what a vehicle was worth before a car crash versus after a car accident. To help put that statement into perspective, think of this. When you drive your shiny new car, truck, van, or SUV off the car dealership lot, the second your tires touch the road the value of your vehicle drops – value diminishes. What you paid is not what you can sell your vehicle for once you’ve signed on the dotted line and drove away. Even if you go right back to the dealership and tell them, “I don’t like the gear shift. Buy my car.” They might happily buy it back and put you in the seat of another new car, but you’re taking a hit on what you originally paid for the first one. It works the same for a vehicle that’s been in an accident. Before the accident, they would have paid you X number of dollars. After a crash, the X number of dollars drops even though the car was repaired to what looked like “good as new”.

Speaking of taking a hit, you cannot trust the insurance company of the driver at fault who smashes into your vehicle. Car repair takes a vehicle back to the same exact condition it was in before the car accident is a misnomer. It’s a myth… a fairytale. It doesn’t even matter how severe an accident or if it’s the tiniest fender bender. It’s a lie. It’s impossible for a car repair auto body shop to mirror the vehicle in its condition prior to an accident. Impossible.

How does State Farm, a collision repair business, and glue play into this story? According to Autobody News there is currently one lawsuit in Federal Court now against John Eagle Collision Center of Dallas, Texas and two more lawsuits pending filing in Federal Court against State Farm Mutual Automobile Company and 3M the adhesive manufacturer. The JECC lawsuit claims all parties committed unthinkable acts putting innocent people in danger and are liable for their actions. It alleges State Farm influenced JECC to use 3M adhesive instead of welding the roof on a 2008 Honda Fit for repair. If the judge finds in favor of the plaintiffs, Matthew and Marcia Seebachan, there is no way to know what the fall-out will be. One thing for sure, is the already questioned integrity of the car repair and insurance industries, whether right or wrong, people already questioning their honesty will have an even bigger reason to doubt them; and some who don’t trust them now, will surely feel stronger after. Either way, these lawsuits are going to have a negative effect in more than a few areas for industries that already work hard to build trust with consumers, often finding they have to defend, or debunk unhappy customer complaints who take their outrageous claims to the Internet.


A message to State Farm: Americans have trusted you since June 7, 1922. If these allegations are found to be true, and these actions are used to influence or encourage car repairs because you care about us, you have let us down. This is most definitely, not what we Americans want. People put their lives and their family’s lives in your hands. After all, you’re our good neighbor right?


In closing I’d like to stress it’s important for you, the innocent car crash victim, to not accept the amount from the negligent driver’s auto insurance. It is NOT their job to tell you about diminished value. Much less, offer you the fair reimbursement you are entitled to for the damages to your vehicle. It’s in their best interest to keep you in the dark. So, with or without the case mentioned above, does State Farm hurt the diminished value of a car? Along with every other insurance company in the U.S. the answer is a resounding yes. Answer a few short questions and find out what your diminished value is today from and then we’ll help you file a claim to get the correct amount of money you are entitled to.