DIMINISHED VALUE – YOUR INSURANCE COMPANY’S BEST KEPT SECRET
Diminished Value is the loss in market value a vehicle suffers as a result of an accident. It is a loss based on the belief that once something has been damaged, it will never be as valuable as it would have been, had it not been damaged in the first place.
HOW DIMINISHED VALUE AFFECTS YOU
Diminished Value, also called a depreciated value clause, is the amount of money you're not going to get when you sell your car because it's been in an accident. If your vehicle suffered significant damage in an accident that was not your fault, you are entitled to file a claim for the diminished value. If the other driver was uninsured, you may also file a diminished value claim as long as you carry uninsured motorists coverage. The total diminished value amount is determined by several factors:
- A reasonable buyer will not pay the same price for a vehicle with an accident history.
- By law you are required to disclose the accident history of a car when you sell it.
- No matter how good the repairs are, no one can "fix" the Carfax report.
- Your repaired car cannot legally qualify as a certified pre-owned vehicle.