What is diminished value?
This is a very hot topic of debate right now. The basic idea of diminished value, as defined by the consumer, is that a car’s value inherently diminishes after it’s been in an accident, regardless of the quality of the repair. However, insurance companies contend that if a vehicle is repaired properly, then it has been restored to “pre-loss condition” and does not have a diminution in value. Currently, there are no known government regulations regarding this topic, and as such, it is ultimately left to the insurance company to decide on whether they will provide a monetary compensation for the supposed loss of value. Please understand that this topic only applies to a third-party or “claimant” on an insurance claim. In other words, if you were involved in an accident, AND the other person was at fault, AND you have filed a claim through their insurance policy, then diminished value is something you can discuss with an insurance company. As with all conversations you have with an insura
Diminished Value is the difference in value between a vehicle with an accident history, and the same vehicle without an accident history. This is also known as “Loss of Value”. Example: A Honda Accord that has been in an accident is worth less than a Honda Accord with no accidents. Even if the Honda Accord was repaired well with no visible damage, the risk of unseen damage increases, and will cause Diminished Value.
