Are You Owed Diminished Value After A Collision?

After a car accident, even with the best repairs (especially those done at OEM-certified facilities like ours), your vehicle may lose value simply because it now has an accident history. This reduction in your car’s resale or trade-in value is called diminished value, and depending on your situation, you may be entitled to compensation for it.

What Is Diminished Value?

Diminished value is the difference between what your vehicle was worth before the accident and what it’s worth after being fully repaired. Even if the repair is flawless, Carfax reports and vehicle history checks will still show that your car was involved in a collision—and that can impact how much someone is willing to pay for it.

There are two types of diminished value that are applicable when you have been in a collision:

1. Inherent – the loss in value due to the accident history alone, even with perfect repairs.
2. Repair-related – if repairs were done incorrectly or with non-OEM (aftermarket) parts, this could further reduce the vehicle’s value.
3. Immediate – the theoretical loss in value right after the collision, before any repairs.

Are You Owed?

• If the other driver was at fault, you can claim diminished value from their insurance company. If you were at fault it would depend on whether your policy allows for diminished value. 

High-End and Newer Vehicles Are Most Affected

If you drive a newer or luxury vehicle, the amount of diminished value can be significant—sometimes thousands of dollars. That’s why it’s worth investigating your rights, especially when your vehicle has been repaired at a certified facility using OEM procedures and parts. Even when your car is restored to exact manufacturer standards, its market perception has changed and that’s what matters to buyers.

How to Pursue a Claim

1. Request an appraisal – A third-party appraiser can evaluate the pre-accident and post-repair value of your vehicle.
2. File a claim with the at-fault driver’s insurance company – Include your appraisal and supporting documents.
3. Be prepared to negotiate – Insurance companies don’t always offer fair compensation up front.

We don’t handle diminished value claims directly, but we’re always happy to point our clients to trusted professionals who do. It’s part of making sure you get everything you’re owed, not just a safe and properly repaired car, but the full value you deserve.

Have more questions about your car’s post-repair value or OEM-certified repairs? Give us a call or stop by, we’re here to help.