Esurance Mishandled Warranty Claim, Misreported Accident to Carfax, and Diminished My Vehicle Value Detroit Michigan

In May 2020, I filed a vandalism claim with Esurance for my 2014 Mercedes-Benz C300. They referred me to Genesis Cadillac, their direct repair shop, for a full repaint. I paid my $500 deductible, and the shop performed a complete exterior strip and repaint. However, once I picked up my vehicle, I immediately noticed visible paint defects—swirl marks, oxidation, and uneven clearcoat. I reported it right away and submitted photo evidence. Esurance adjuster Neil Compton acknowledged the damage in writing but ultimately denied the rework, stating the shop found no fault and suggesting I caused the damage through improper washing (which was not true). Later, I had the paint independently evaluated by Hendrick Collision, who recommended the vehicle be sanded and repainted again due to poor workmanship. Esurance reviewed the estimate but still denied the claim. I also discovered that the vandalism claim was reported to Carfax as a moderate-to-severe accident. In addition, a second accident was reported on March 15, 2021, which never happened.

My vehicle now shows three accidents: • May 22, 2020 – vandalism claim, misreported as a severe collision • March 15, 2021 – no accident occurred • May 12, 2021 – valid minor accident, properly repaired This inaccurate accident history has drastically impacted the value of my vehicle. I’ve received trade-in offers from Carvana that dropped from $10,759 in 2019 to just $1,000–$1,300 in 2025. J.D. Power estimates my car’s retail range at $7,655–$9,000, meaning I’ve lost over $6,000 in value—yet I was never informed of my right to pursue a diminished value claim, despite the vehicle being fully paid off at the time.

I have since filed a formal complaint with the Michigan Department of Insurance and Financial Services (File #236037-001), as well as with the FTC, Michigan Attorney General, and Carfax. My case is fully documented with emails, estimates, photos, and appraisal records from 2019–2025. I’m sharing my experience to inform others and to add my voice to the larger conversation around insurance accountability and the long-term effects of misreporting and denied warranty coverage.