What is Diminished Value?

Depending on certain conditions, failing a diminished value claim may not be worth it for everyone. You may or may not receive a payout when filing a diminished value claim if you do not have a valid claim or fail to prove your loss.

A few things that should be considered:

• Your vehicle’s value before the accident: If your car is older with high mileage or has past accident history, you may not receive a payout for diminished value.
• Who was at fault?: If you caused the accident, you cannot make a diminished value in Texas.
• If you are involved in an accident with an uninsured driver, you will not be able to collect diminished value from any insurance company. If hit by an uninsured driver, your only option is to file suit against the at-fault driver.
• What state the accident occurred in: Every state has unique regulations and statutes regarding diminished value claims.

• Inherent diminished value -Refers to the vehicle’s resale value immediately after repairs from an accident. Even if the car was repaired back to factory specifications, the accident history decreases its value and limits its marketability to potential buyers. Inherent diminished value is the most common type of diminished value claim.
• Repair-related diminished value – refers to substandard repairs on your car, which may further reduce your car’s value, such as substandard parts, improper fitment, refinish concerns, etc. This form of diminished value often falls on the responsibility of the repairer and reinforces the importance of finding a reputable collision shop.
• Immediate diminished value – This type of claim refers to the resale value immediately after your car is involved in an accident before it gets repaired.