State Farm Insurance spent $80,092.10 on a Ford F-250 Lariat worth $55,000.00 — because they refused to total it, lowballed the diminished value claim, and acted in bad faith toward their own policyholder. The St. Lucie Appraisal Company was hired by Pennsylvania resident John O’Connor to establish the truck’s loss in value after a frame-replacing collision repair. What followed was a 16-month fight that exposed State Farm’s valuation methodology as indefensible, produced a $19,367.10 diminished value recovery, a transmission replacement paid by State Farm, and a bad faith award. This is that case, documented in full.
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Case Summary: Ford F-250 Lariat vs. State Farm Insurance — Pennsylvania
| Item | Detail |
|---|---|
| Vehicle | Ford Super Duty F-250 Lariat Crew Cab 4WD |
| State | Pennsylvania |
| Mileage at Time of Loss | 7,260 |
| Damage | Frame replacement; complete rebuild |
| Fair Market Value at Time of Loss | $55,000.00 |
| St. Lucie Appraisal Diminished Value | $27,268.85 (45.83%) |
| State Farm’s Initial Offer | $7,000.00 (no written methodology provided) |
| Diminished Value Recovered | $19,367.10 |
| Bad Faith Award | $12,225.00 |
| Transmission Replacement (post-accident) | $8,000.00 (paid by State Farm) |
| Total State Farm Expenditure | $80,092.10 |
| Insurer | State Farm Insurance |
What Ford Dealer Sales Professionals Said About a Frame-Damaged F-250
During our research, one used car sales professional at a Ford dealership said with frame damage it will be a 50% hit and also, if the Carfax has on it that it has been frame damaged, he won’t even touch it. Another member of the sales team said he can’t believe that it was not totaled. We can’t do anything with it. Your client stands to lose 50% in a trade.
No Ford dealer would put this truck on their lot after taking it in on trade because they are unable to certify it and banks won’t finance it. It would go straight to auction where, hopefully, the dealer that consigned the vehicle would be compensated for at least as much as they paid. Frame damage and air bag deployment cause any vehicle to lose close to half their value — and that’s only if it is traded for a new car. In an outright sale, a Ford dealer would offer ten cents on the dollar if they’d consider buying it at all.
The Claim: How It Unfolded
Our client, John O’Connor, on September 27, 2019, presented State Farm Insurance Company in Pennsylvania with a third-party inherent diminished value claim for the loss of value subsequent to his truck being fixed. A Ford Super Duty F-250 Lariat Crew Cab 4WD with 7,260 miles, the repairs included the replacement of the frame. stlucieappraisal.net was hired to provide a diminished value report and whatever support we could offer on his behalf. Our research showed that the truck lost approximately 45.83% of its pre-accident fair market value. The diminished value came to $27,268.85.
State Farm responded with an offer of $7,000.00. Their letter cited “based on our experience” as the basis for the figure. No methodology. No documentation. No written support.
Our Advice to Mr. O’Connor
State Farm wrote “based on our experience” which says nothing without the underlying explanation of what that means. It amounts to “we made it up” — so please ask them for the methodology used to arrive at their figure, just as you provided them with the methodology used by your appraiser.
The Client’s Response to State Farm — In His Own Words
Mr. O’Connor immediately wrote to the State Farm file handler:
Thank you for the advice. I put together a letter to State Farm including addressing items you advised me on. State Farm claims they used NADA to come up with their number but did not offer any support of that number in writing. This morning, I called NADA (JD Power) and spoke to a rep, Joshua. I asked him if NADA numbers take into account repairs a vehicle has had due to an accident. He said no, it only takes into account the condition of the vehicle, such as rough, average and clean trade ins as well as clean loan and clean retail. None of which apply to me. So, I am guessing that State Farm used the rough trade in value to come up with their fictitious offer. I wanted to let you know this information so you know this since this is what you do for a living. You may have been aware of it or this may be a new tactic by insurance companies to try to bend over claimants. I believe in my letter I have put State Farm in a position where they have no choice but to deal with me in good faith or they know I will go to litigation. If you would like to see what I wrote them I can forward you the letter. Thanks again for your help and I have been keeping notes with all of my dealings with State Farm. I am curious as to how this will end up because I think State Farm just shot themselves in the foot and they know it.
A week later, Mr. O’Connor wrote again:
I just heard from State Farm and they called me and I did not answer the phone on purpose because I asked for everything in writing. They left me a voicemail and said they can offer $7,000 and that’s it, very short email. They are not acknowledging my request to see how they come up with that number. I am thinking of emailing them requesting the methodology for that $7,000 otherwise I’ll be contacted by my lawyer and file a complaint for unfair claim practices.
Another week passed. Mr. O’Connor was persistent in his quest for fair treatment:
Good morning and hope all is well. To update you on my dealings with State Farm and my DV claim, State Farm is simply holding firm on their $7,000.00 offer with no valid method to back it up. I saw my attorney yesterday and will see him again on November 8, 2019. I wrote State Farm another letter telling them in very plain English that I saw my attorney yesterday and I am giving them until November 7, 2019 to settle out of court. I told State Farm I will settle for not one penny less than $18,000.00 but if we do not settle and go to court I am going for the full DV claim amount of $23,090.00 plus attorney fees and your fee to testify via video conference. I am starting to see that my accident has been handled completely wrong since the get go by State Farm and I have let them know it. I am hoping they do settle out of court because I have a very strong case, not only with diminished value but since my truck was completely rebuilt there are valid safety issues that concern me.
Another month passed:
Hello. I wanted to update you on my truck. Saw my lawyer today, State Farm offered to settle out of court for the balance of the property damage limit of the person who hit me. It cost $30,600 to fix my truck and give me a rental, they offered balance of $19,400. I am taking it. However, my lawyer suggested filing a small claims lawsuit for $12,000 to cover my legal fees and balance of my diminished value not covered by property damage limits. State Farm screwed up and only had one adjuster deal with both parties in the accident (we are both insured with State Farm) and acted in bad faith, so we are filing a bad faith against State Farm to collect the remaining balance. I should have had my own adjuster and been involved in the decision to fix or total my truck. That never happened. I’ll let you know what happens in small claims. Thanks again for your help and I have been keeping notes with all of my dealings with State Farm.
By June 1, 2020:
Hello and hope all is well. Updating you on my truck that you helped me with over the past 6–7 months. So far, it cost 30k to fix truck and pay for my rental, I received 20k in diminished value with help of my lawyer and State Farm just paid my repair shop 8k to replace the transmission in the truck. I’ve been having problems with the transmission since the accident and Ford wrote up an estimate and said the transmission needs to be replaced. Truck goes in Monday for new transmission. That brings the total so far to 58k plus their lawyer fees. Also, we are about to file a bad faith claim for 12k because State Farm used one adjuster to represent both parties. That will put them over 70k! FMV was 55k at time of accident. Like you told me, they should have totaled it. Makes absolutely no sense.
The Final Outcome — November 15, 2020
It can seem hopeless when a large corporation such as State Farm tries to impose its will. But John O’Connor and his attorney kept up the fight. The final email received from Mr. O’Connor on November 15, 2020 is printed here verbatim:
Hello. Well, finally it is coming to an end after over a year since my accident. I wanted to get you a final recap of what happened. It was a long and winding road as you stated.
1) Accident July 24, 2019
2) Diminished Value Appraisal you provided: $22,500.00
3) Fair Market Value per your appraisal: $55,000.00
4) Cost to repair truck: $27,500.00 (paid by State Farm) (frame swap and complete rebuild of the truck, should have been totaled)
5) Cost of rental truck: $3,000.00 (paid by State Farm)
6) 6 months after accident, transmission replaced due to accident: $8,000.00 (paid by State Farm)
7) Diminished Value claim I filed and won: $19,367.10 (paid by State Farm) — I paid $3,000.00 for lawyer fee to collect DV, actual money recouped was $16,367.10
8) Bad Faith Claim per my lawyer to collect lawyer fees and balance of DV I lost: As of November 2, 2020, State Farm did not enter a defense to this case and I was awarded $12,225.00. They have 30 days to appeal but most likely will not because they used one adjuster to represent both parties in my accident. Both parties in accident had State Farm as their insurance carrier, State Farm acted in Bad Faith and it’s a conflict of interest, they already admitted this. Once the bad faith suit is settled, I will receive another $8,000.00 and the lawyer gets $4,000.00. Once I receive this final payment, I will then be back to my financial position prior to the accident.
9) Estimated lawyer fees for State Farm: $10,000.00
10) I just got truck back yesterday because shop messed up paint work during original rebuilding of the truck. This was noticed Spring 2020, Summer 2020 they tried to do a paint correction and screwed it up even more. I went to another shop, was told had to be stripped and repainted, start over from scratch — shop estimated $9,000.00 to do this. I took back to original shop, they used a different painter, truck is now, in my opinion, back to pre-accident condition as close as it can be. This cost was absorbed by the shop, no cost to me or State Farm.So, total amount of money spent by State Farm to repair a truck worth $55,000.00 in the market:
Repairs: $27,500.00
Rental: $3,000.00
Transmission: $8,000.00
Diminished Value Claim: $19,367.10
Bad Faith claim: $12,225.00
Estimated State Farm attorney expenses: $10,000.00
Total: $80,092.10And there ya have it, what a mess. I am happy this is, for the most part, over. Thank You for all of your help and advice.
About the Diminished Value Appraisal Process
Once a car is repaired after a collision, it is worth less — often much less depending on the severity of the damage. Regardless of how well the repairer did his job, nobody will pay as much for a previously wrecked car as they would for an identical one that was never in an accident. Frame damage and air bag deployment cause any vehicle to lose close to half its value. Presenting a diminished value claim and following it through to a satisfactory conclusion is a daunting task for the average person. Obtaining a comprehensive Diminished Value Report from a qualified independent appraiser is key.
Questions and Answers: Diminished Value Claims Against State Farm and Other Insurers
How much did State Farm ultimately pay on the Ford F-250 diminished value claim in Pennsylvania?
State Farm’s total expenditure on this claim reached $80,092.10 — on a truck with a fair market value of $55,000.00 at the time of the accident. This included $27,500 in repairs, $3,000 in rental costs, $8,000 for a post-accident transmission replacement, $19,367.10 in diminished value, a $12,225 bad faith award, and an estimated $10,000 in State Farm’s own attorney fees. The truck should have been totaled from the outset.
What diminished value did The St. Lucie Appraisal Company establish for the Ford F-250?
The St. Lucie Appraisal Company established a diminished value of $27,268.85 — approximately 45.83% of the truck’s pre-accident fair market value of $55,000.00. The high percentage was driven by frame damage, which prevents Ford dealers from certifying the vehicle, disqualifies it from bank financing, and sends it directly to auction at wholesale prices. The client ultimately recovered $19,367.10 in diminished value after attorney fees.
What methodology did State Farm use to counter the diminished value claim?
State Farm cited NADA values but provided no written support for their methodology or their $7,000 offer. When the claimant called NADA (JD Power) directly, a representative confirmed that NADA figures do not account for accident history — they only reflect vehicle condition categories such as rough, average, and clean trade-in. State Farm appeared to have used the rough trade-in value as the basis for an offer that bore no relationship to the actual diminished market value of a frame-damaged truck.
What did Ford dealer sales professionals say about a frame-damaged F-250’s resale value?
Sales representatives at Ford dealerships contacted during the appraisal research were unequivocal. One sales professional stated that frame damage results in a 50% loss and that if the Carfax shows frame damage, he won’t even touch it. Another member of the sales team said he couldn’t believe the truck wasn’t totaled, adding that we can’t do anything with it and that the client stands to lose 50% in a trade. These assessments are consistent with the 45.83% deduction established in the appraisal.
What is a bad faith insurance claim and how did it apply in this case?
A bad faith insurance claim arises when an insurer fails to deal honestly and fairly with a claimant. In this case, State Farm assigned a single adjuster to represent both parties in the accident — despite both being State Farm policyholders, creating a direct conflict of interest. State Farm admitted this error. The claimant’s attorney filed a bad faith claim, State Farm did not enter a defense, and the claimant was awarded $12,225.00 — separate from and in addition to the diminished value recovery.
Should my truck have been totaled instead of repaired?
When repair costs approach or exceed a significant percentage of a vehicle’s fair market value — particularly when structural damage is involved — totaling the vehicle is typically the correct outcome for the policyholder. In this case, it cost $27,500 to repair a truck worth $55,000, the frame was replaced, and the transmission subsequently failed due to accident-related damage. The total cost to State Farm exceeded $80,000 on a $55,000 vehicle. Had the truck been totaled at the outset, the claimant would have received fair market value and State Farm would have paid far less. If you believe your vehicle should have been totaled, call The St. Lucie Appraisal Company at 772-359-4300 for a free telephone consultation.
How should I respond if an insurer makes a diminished value offer with no written methodology?
Request the methodology in writing. An insurer citing “based on our experience” or referencing NADA without documentation is not providing a defensible valuation — they are making an unsupported assertion. As demonstrated in this case, asking State Farm to produce their methodology exposed the weakness of their position and opened the door to litigation, bad faith findings, and a final settlement that dwarfed their original $7,000 offer. A comprehensive appraisal from The St. Lucie Appraisal Company gives you a documented, methodology-backed counterpoint to present in writing.
What does a diminished value appraisal cost?
The fee for an Automobile Diminished Value Report is $275.00. Tesla and other exotic car owners should call for rates. Payment may be made by credit card or PayPal online, or by telephone at 772-359-4300. After making payment, email your body shop estimate or insurance company appraisal to contact@stlucieappraisal.net. Telephone consultations are always free of charge.
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