What is a Diminished Value Claim? - Know Everything in Detail
Oct 8, 2025
When your car is involved in an accident, even after being fully repaired, it often loses part of its resale value. This loss in value is known as diminished value.
A diminished value claim is a type of insurance claim that allows you, the vehicle owner, to recover the difference between your car’s pre-accident market value and its value after repairs.
Even if your car looks as good as new, buyers and dealers know it has a prior accident history. This accident record, usually visible on reports like CARFAX or AutoCheck, can reduce the car’s resale or trade-in price significantly.
That’s where a diminished value claim comes in to help you recover that financial loss.
Why Diminished Value Claims Matter
If you’re not at fault in an accident, you shouldn’t bear the loss in your car’s market value. Insurance companies may cover your repair costs, but rarely inform you about the right to claim diminished value.
Filing this claim ensures you receive fair compensation for the real-world loss that occurs after an accident.
For instance, if your car was worth $30,000 before the accident and, after repairs, it’s appraised at $25,000, the diminished value is $5,000.
That’s money you could claim back, but only if you know how to do it correctly and have the right evidence.
How Does a Diminished Value Claim Work?
When a car is damaged and repaired, three main types of diminished value may occur:
Immediate Diminished Value:
The loss in value immediately after an accident, before any repairs are made.Inherent Diminished Value:
The most common type refers to the permanent loss in value after repairs, simply because the car now has an accident history.Repair-Related Diminished Value:
When poor-quality repairs or non-OEM parts lead to additional loss in value.
Most car owners file an inherent diminished value claim, as even top-quality repairs can’t restore the vehicle’s original pre-accident market value.
How My Fair Claim Helped a Customer Recover $6,200 in Diminished Value
At My Fair Claim, we recently worked with a client from Texas who owned a 2021 Toyota Camry XSE. The car had been hit by another driver and sustained significant damage to the rear quarter panel.
Even though the insurance company covered the full cost of repairs, the car’s Carfax report showed a major accident, drastically lowering its resale value.
Our team performed a professional diminished value appraisal, comparing pre-accident market value, repair quality, mileage, and regional market data.
The results showed that the vehicle had lost $6,200 in market value due to its accident history.
We prepared a detailed diminished value appraisal report and negotiated directly with the at-fault driver’s insurance company.
Within a few weeks, our client received the full $6,200 settlement without any additional hassle.
This case highlights our expertise, precision-based valuation, and commitment to securing maximum compensation for our clients.
How to File a Diminished Value Claim (Step-by-Step)
Confirm Fault:
Ensure you were not at fault in the accident. Diminished value claims typically apply when another party caused the damage.Get a Diminished Value Appraisal:
Contact a diminished value appraiser to get a detailed report assessing your car’s pre- and post-accident values.Submit the Claim:
Send the appraisal report and related documentation to the at-fault driver’s insurance company.Negotiate if Needed:
Insurance companies often make low initial offers. Our team can help you negotiate professionally using data-driven evidence.Get Paid:
Once approved, you’ll receive compensation for your car’s lost market value.
Common Questions About Diminished Value Claims
1. Who is eligible to file a diminished value claim?
If you weren’t at fault in the accident and your car has lost value despite repairs, you’re eligible.
2. How long after the accident can I file the claim?
Most states allow claims within 2 to 3 years, but it’s best to act quickly.
3. Can I claim diminished value if my car is leased or financed?
Yes, in most cases you can, but the payout may depend on your lease or finance agreement.
4. Do all insurance companies pay diminished value claims?
Many try to avoid it, which is why having My Fair Claim’s expert report strengthens your case.
Why Choose My Fair Claim for Your Diminished Value Appraisal
At My Fair Claim, we specialize in auto diminished value appraisals and insurance negotiations across the United States.
Here’s why thousands of vehicle owners trust us:
Certified Diminished Value Appraisers with years of experience.
Data-backed reports that insurance companies respect and accept.
Fast turnaround time — typically within 2–3 business days.
High success rate in getting fair settlements for our clients.
No hidden fees — transparent pricing with dedicated customer support.
Our mission is simple: make sure you don’t leave money on the table after an accident.
So, What Is a Diminished Value Claim?
A diminished value claim is your right as a vehicle owner to recover the financial loss your car suffers after an accident, even when fully repaired.
Unfortunately, most drivers never realize they’re entitled to this money.
That’s where My Fair Claim steps in. With years of experience and industry-recognized expertise, we help you determine your vehicle’s true diminished value and fight for the fair compensation you deserve.
Don’t let insurance companies decide your car’s worth. Let My Fair Claim help you get it back.
Contact us to Get Your Free Diminished Value Estimate today and see how much your car’s value has dropped after an accident.