Diminished Value Claims After a Car Accident

You should understand that if your car has recently been in a collision, then its value was diminished. This is why you may want to make a diminished value claim after a car accident. Find out more about this topic in the following blog post and get a car free insurance quote.

# images (1)A car has “diminished value” after a collision because it loses resale value. Even if the car is successfully repaired, it will still have less value than an identical vehicle that has never been in a collision. And, of course, future buyers will prefer buying an accident-free vehicle. Diminished value insurance claims allow car owners to recover the difference between a car’s pre-accident value and its value after repairs. Not all vehicle owners, however, are eligible for diminished value claims. Laws vary between states.

If you’re eligible to collect diminished value in your state, then you need to submit a claim to your insurance company. If your insurance company refuses to pay, then you may wish to pursue the case in small claims court. Of course, you must first appraise the current value of the car, after the accident.

You should know that there are three types of diminished value claims:

Immediate: Immediate diminished value claims refer to the difference between the resale value of the car before and after an accident. The value of the vehicle “immediately” changes because the car has damage from the accident. Immediate diminished value isn’t typically useful, because it refers to the vehicle before it’s been repaired.

Inherent: Inherent diminished value refers to the difference between the resale value of the car before the accident and the resale value of the car after repairs. This is the most useful measurement when dealing with diminished value claims.

Repair-Related: Some situations may require a reference to repair-related diminished value, which refers to the loss of value related to incomplete or faulty repair work on the vehicle.

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