Diminished Value

Diminished value is the loss in a vehicle's market value after it has been in an accident and repaired. This happens because an accident history on a vehicle's report can make it less valuable to future buyers, even if the repairs are perfect. A diminished value claim is a way to seek compensation for this loss, typically filed with the at-fault driver's insurance company.

What is diminished value?

• It is the difference in a vehicle's market value before and after an accident, even after it has been professionally repaired.

• This loss in value is based on market perception, as accident history on reports like Carfax can lower a car's resale value.

• Diminished value is often most relevant for newer or more valuable vehicles.

How to file a diminished value claim

• You can file a claim with the at-fault driver's insurance company, especially if you were not at fault for the accident.

• You will need to prove the diminished value of your car. This often requires an appraisal from an expert who will consider factors like the vehicle's age, make, model, mileage, and damage severity.