What Is a Diminished Value Claim?
A diminished value claim is a request for compensation that a vehicle owner can make when their car loses resale value after being damaged and repaired. Even with high-quality repairs, buyers typically devalue vehicles with accident histories. Insurance companies may be liable to pay the difference in value, depending on the policy and jurisdiction.
Types of Diminished Value
- Inherent Diminished Value – This is the most common type. It refers to the loss of value due to the accident history, even after full repairs.
- Repair-Related Diminished Value – Arises when poor or incomplete repairs lower the car's market value.
- Immediate Diminished Value – The difference in value between the car’s worth before the accident and immediately afterward, before any repairs.
Why an Auto Diminished Value Appraisal Matters
Getting an auto diminished value appraisal is key to supporting your claim. A certified appraiser evaluates your vehicle's market value before and after the incident to determine how much value was lost. This report becomes crucial evidence when filing a claim, especially if the insurer disputes your estimate.
What the Appraisal Includes
- Vehicle history and accident reports
- Pre- and post-accident market values
- Mileage, make, model, and condition
- Comparable listings and expert analysis
Filing a Diminished Value Claim: Step-by-Step Guide
- Check Eligibility – Not all states allow diminished value claims. Also, your ability to claim may depend on whether you were at fault.
- Gather Documentation – Include repair invoices, accident reports, and photos.
- Get an Auto Diminished Value Appraisal – Hire a qualified professional to determine the actual loss in value.
- Submit the Claim to the Insurance Company – Present all documentation and the appraisal report.
- Negotiate the Settlement – Be prepared to counter the insurer’s initial offer with evidence.
- Seek Legal Advice (if necessary) – Some cases may require legal support to reach a fair resolution.
Common Mistakes to Avoid
- Accepting the first offer without an appraisal
- Failing to research state laws on diminished value
- Not documenting repairs thoroughly
- Waiting too long to file your claim
Conclusion
If your car has been in an accident—even if it looks flawless now—it may have lost market value. Filing a diminished value claim backed by a professional auto diminished value appraisal can help you recover that hidden loss. Understanding the process empowers you to protect your financial interests and ensure you’re not leaving money on the table.
FAQs
Q1: Can I file a diminished value claim if the accident was my fault?
In most cases, no. Diminished value claims typically apply to not-at-fault drivers.
Q2: Is an auto diminished value appraisal required?
Yes, it strengthens your claim and often determines how much compensation you can realistically pursue.
Q3: How much value does a car lose after an accident?
It depends on the vehicle, extent of damage, and repair quality—but losses of 10–30% are not uncommon.
Q4: Do all insurance companies accept diminished value claims?
Policies vary. Some insurers may not cover it unless required by state law.
Q5: How long do I have to file a diminished value claim?
The statute of limitations varies by state, but filing sooner is always better.