Diminished Value is defined as the amount by which the resale value of a repaired vehicle has been reduced as a result of an accident.
Classic Case: Your $75,000 vehicle is “t-boned” by a negligent third party. The negligent third party’s insurance carrier pays to REPAIR your vehicle. However, the damages do not stop there! Now the vehicle is no longer worth what it was prior to the damage occurring; i.e., you paid $75,000 for the vehicle and it was worth $50,000 due to the wear and tear but after the accident it’s only worth $35,000 because it is “damaged goods”. This is a Diminished Value Loss of $15,000.
Insurance carriers rarely take this diminished value portion into consideration when settling an Automobile Physical Damage claim, leaving you out the $15,000 in the above example.
There are means by which you can pursue the lost dollars against a negligent third party by proving the diminished value amount. There are many experts that can help evaluate your claim for diminished value, most of which you can find on the internet. One which is local and has had success proving diminished value is CarSense Appraisals (www.thecarsense.com).
Feel free to contact our Claims Department if you have any questions.