After a car crash, most people focus on getting their vehicle repaired — but few realize their car may never regain its true market value, even with perfect repairs. This loss is called Diminished Value (or Diminution of Value), and it can cost you thousands when you sell or trade in your vehicle.
What Is Diminished Value?
Diminished value is the reduction in a vehicle’s worth after it has been involved in a collision and repaired. Even when repairs are completed flawlessly, the fact that the car has a damage history on record (such as on Carfax) makes it less appealing to buyers.
For example, a 2020 SUV worth $30,000 before the crash may only be worth $25,000 after the same-quality repairs — meaning you’ve lost $5,000 in value through no fault of your own.
The Three Types of Diminished Value Claims
Immediate Diminished Value:
The loss in value immediately following the accident, before any repairs are made.Repair-Related Diminished Value:
The drop in value caused by incomplete or substandard repairs — such as mismatched paint, frame damage, or use of aftermarket parts.Inherent Diminished Value:
The most common type — even after high-quality repairs, your car is worth less simply because it has been wrecked.
Who Pays for Diminished Value in Florida?
In Florida, you can pursue a diminished value claim against the at-fault driver’s insurance company. However, your own insurer generally will not pay for this loss under your collision coverage.
To recover this value, you’ll need:
- A professional diminished value appraisal
- Repair invoices and photographs
- Proof of your vehicle’s pre-accident market value
Diminished value claims are complex, but you don’t have to handle them alone. Call The Watson Firm, PLLC today at (850) 607-2929 or fill out our online form to schedule a consultation.