Understanding Diminished Value Claims

Are You Leaving Money on the Table?

When you’re involved in a car accident, the damage doesn’t always end once your car is repaired. Even after full repairs, your vehicle may be worth less than it was before the crash. That difference in value? It’s called diminished value — and if you don’t know how to file a claim for it, you could be leaving serious money on the table.

A diminished value claim helps recover the loss in market value your car suffers after an accident, even after it’s been professionally repaired.

Let’s say your vehicle was worth $20,000 before an accident. After repairs, it’s now only worth $16,000 on the resale market—even though it looks brand new. That $4,000 loss in value is where your diminished value claim comes in.

Pro Tip: Accident reports can be tricky to track down, especially if multiple agencies are involved. Use a tool like Accident Feed or call (877) 648-4271 to simplify the process.

Even with high-quality repairs, buyers (and dealerships) often see post-accident cars as riskier. Factors that affect diminished value include:

• The severity of the damage
• The quality of the repairs
• Whether airbags deployed
• If the title status changed (e.g. salvage)
• The vehicle’s age, mileage, and make/model

Fun fact: Some states require dealers to disclose a vehicle’s accident history, which directly impacts resale value.

There are three kinds of diminished value:

1. Inherent Diminished Value:
   The most common type. It refers to loss in value simply due to the fact the car was in an accident, regardless of repair quality.
2. Immediate Diminished Value:
   The drop in value right after the accident, before any repairs are made.
3. Repair-Related Diminished Value:
   If the repairs weren’t done properly or used aftermarket parts that lower the car’s quality or function.

That depends. Here’s when you might be eligible:

✅ You were not at fault for the accident

✅ Your car is relatively new and in good condition before the crash

✅ You’re filing the claim through the at-fault driver’s insurance

✅ Your state allows diminished value claims

Important: Most insurance companies don’t offer diminished value payouts if you’re filing through your own collision coverage (i.e., when you’re at fault).

1. Get a copy of the police report
   You’ll need to prove fault and show that the other party was responsible.
2. Request a diminished value claim form from the at-fault driver’s insurer
   If they don’t offer one, you can still submit a written request.
3. Get an independent appraisal
   Have a certified professional assess the pre-accident value vs. current value.
4. Submit all documents
   Include the appraisal, repair records, and proof of your car’s prior condition.
5. Negotiate if necessary
   Insurance companies may offer a lowball figure. You have the right to counter with documentation.

Not every state treats diminished value claims the same. Some make it easier to recover losses, while others place more restrictions — especially when you’re filing through your own insurance.

Here’s what you need to know:

📍 California

In California, you can file a diminished value claim if you were not at fault and you’re going through the at-fault driver’s insurance (a third-party claim). However, California does not typically allow diminished value claims through your own insurer (first-party claim), as most policies exclude it.

To successfully recover diminished value in California:

• You’ll need to prove your car is worth less even after repairs (usually through a professional appraisal)
• The insurance company may push back, so documentation matters

States That Generally Allow Diminished Value Claims:

Georgia

North Carolina

Florida

California (third-party claims only)

Washington

States Where Diminished Value Claims Are Rare or Unavailable:

Michigan

Nebraska

Pennsylvania (restricted through your own policy)

How BetterClaims Can Help

Diminished value claims are one of the most overlooked opportunities to recover your losses after an accident. Many drivers don’t even realize they’re eligible—let alone how to prove it.

At BetterClaims, we help you:

• Understand your rights
• Gather the right documents
• Connect you with professionals
• Take the stress out of the process

Don’t Let Insurance Lowball You

If your car was in an accident and it wasn’t your fault, you might be owed more than you think. Diminished value is real—and you deserve to be made whole.

📞 Call (877) 648-4271 today to speak with a Diminished Value Specialist or get help requesting your accident report.