Can I Get Diminished Value Compensation After My Car Is Repaired?

Even after your car is fully repaired from an accident, it’s often worth less than it was before the crash. This loss in value is called “diminished value.” The question is: Can you get compensated for it?

1. What Is Diminished Value?

Diminished value is the difference between your car’s pre-accident value and its value after repairs.

• Even if the repairs are flawless, accident history shows up on reports like Carfax.

• Buyers and dealerships are less willing to pay full market price.

2. Types of Diminished Value

There are three main categories:

• Immediate diminished value: Drop in resale value right after the accident.

• Inherent diminished value: Permanent reduction due to accident history, even after quality repairs.

• Repair-related diminished value: When repairs lower value (e.g., poor paint match, aftermarket parts).

3. When Can You Claim Diminished Value?

• Many states allow you to pursue diminished value claims against the at-fault driver’s insurance.

• Some policies cover it automatically, while others exclude it.

• You generally can’t claim diminished value if you were at fault.

4. How to Prove Diminished Value

• Get a professional appraisal of your car’s pre- and post-accident values.

• Use vehicle history reports showing how much value drops after an accident.

• Provide market data for similar cars with and without accident records.

5. Challenges With Diminished Value Claims

• Insurers may fight these claims, arguing the repairs restored full value.

• Proving the exact dollar difference can be difficult.

• You may need an attorney or appraiser to strengthen your case.

The Bottom Line

Yes, you may be able to get diminished value compensation — but it depends on your state, your policy, and whether you were at fault.

👉 If your car lost value after an accident and you want to explore a diminished value claim, fill out our quick questionnaire. FindLawFast will connect you with the guidance you need.

Disclaimer: This article is for general informational purposes only and should not be taken as legal or financial advice. Diminished value claim eligibility depends on state laws, insurance policies, and case details. Always consult with a qualified professional about your situation.