Diminished Value is the reduction in resale value a vehicle suffers after an accident or incident. With everything else being equal, buyers will always choose an undamaged vehicle over one that’s been in an accident. In other words, a damaged and repaired vehicle will always bring less money on the open market than an undamaged counterpart.
Below are auction results for the same vehicle, date and location. As you can see, for the same mileage and color, one vehicle is worth $2,500 less. This is called inherent loss in value and is due to one vehicle having a previous accident.
How Can I get compensated for Diminished Value?
By law, the at fault party and due to their negligence, is responsible to compensate you for all direct and indirect losses. This is a universal right and applies in all States and Jurisdictions.
To get paid for your loss in value, you need to submit a demand letter and an appraisal report to the at fault party requesting prompt and fair compensation for your loss. In many cases the at fault insurance carrier will send you a check for this loss, this is usually after you make a written request.
When do I need an Auto Appraisal?
You need an independent auto appraisal in the following situations:
- The insurance company is being unfair in their valuation
- The insurance company will not/did not assess the loss in value
- The insurance company asks for proof of loss
- When invoking your insurance policy’s appraisal clause
What’s the next Steps:
- If you are ready to order an desk appraisal, visit our order page.
- If you want to get a free estimate before ordering an appraisal, visit our free claim review.
Thank you for choosing The Diminished Value Company, we look forward to helping achieve the settlement you deserve.