FAQ

FAQ: Diminished Value & Total Loss Claims

Diminished value refers to the reduction in your car’s resale or trade-in value after an accident—even if the vehicle is fully repaired. Because the car now has an accident history, buyers and dealers may offer less than they would for a similar undamaged car.

A diminished value claim allows you to seek compensation for the loss in your car’s market value due to the accident. These claims are typically filed against the at-fault driver’s insurance policy.

You may be eligible to file a diminished value claim if:

  • You were not at fault for the accident
  • Your car was repaired, not totaled
  • Your state allows third-party diminished value claims
  • You file within the required time window (varies by state)

In most cases, no. Diminished value claims are generally only honored if the other driver was at fault. However, some states and policies may allow it under limited circumstances—check your coverage.

Payouts vary based on:

  • The age and mileage of your vehicle
  • Pre-accident condition
  • Extent of damage
  • Local resale values
    Claims can range from a few hundred to several thousand dollars.

To strengthen your claim, provide:

  • Pre- and post-accident appraisals
  • Quotes or documentation from local dealers
  • Market comparisons for similar vehicles without accident history
  • A third-party diminished value report

It typically takes 2 to 6 weeks, depending on the insurer’s responsiveness and whether there’s any dispute over your claim documentation.

Usually not. Because this type of claim is typically filed with the at-fault driver’s insurance, it doesn’t affect your premiums.

Not necessarily, but working with a diminished value expert or attorney can help if you’re unsure how to calculate value loss or if the insurer pushes back. Many specialists offer free reviews.

No. Diminished value claims only apply to repaired vehicles. If your car was declared a total loss, you would instead file a total loss claim to recover its full pre-accident value.

A total loss happens when your car’s repair costs exceed its actual cash value (ACV). In this case, the insurance company will usually offer a settlement instead of covering repairs.

A total loss claim is how you request compensation after your car is declared a total loss. If approved, you’ll receive a settlement based on your car’s ACV before the accident.

  • Contact your insurance company
  • Provide accident details and vehicle documents
  • Work with the adjuster to confirm your car is a total loss
  • Submit any required forms or title documentation
  • Review and accept the settlement

Most are resolved in 7 to 14 business days, but delays can occur if there’s missing paperwork, lender involvement, or a dispute about your car’s value.

Yes. If you believe your vehicle was undervalued, you can:

  • Request a copy of the valuation report
  • Show listings for comparable vehicles
  • Submit receipts for recent upgrades or maintenance
    It’s your right to ask for a fair review.

Diminished Value Claim FAQ

A diminished value claim is a request for compensation after your car is repaired but has lost resale value due to its accident history. Even if the vehicle looks and runs well, it may be worth significantly less on the open market.

Claims are most common after:

  • Rear-end collisions
  • Accidents with frame or structural damage
  • Major cosmetic repairs (doors, fenders, panels)
  • Airbag deployment
  • Any crash reported on Carfax or other vehicle history databases

Typically, the not-at-fault party in a car accident can file a diminished value claim against the other driver’s insurance. A few states also allow first-party claims under specific policies.

It depends on your state. Some states allow you to file if you’re less than 50% at fault. In contributory negligence states (like Virginia or North Carolina), any level of fault may bar your claim.

Not always. Some insurers push back or require extensive documentation. Third-party insurers (the at-fault driver’s carrier) are more likely to pay out than your own.

Claims typically range from $500 to $5,000+, depending on:

  • Pre-accident market value
  • Extent of damage
  • Mileage and condition
  • Local vehicle pricing trends

Yes—especially for newer, low-mileage, or high-value vehicles. If your car was worth $25,000 before the accident and now it’s only worth $20,000, you could be eligible for a $5,000 claim. For older cars, the claim amount may be smaller.

It varies by state. For example:

  • Virginia: 5 years
  • Texas: 2 years
  • Georgia: 4 years
    Check your state’s statute of limitations and don’t delay—some insurers impose tighter internal deadlines.

Anywhere from 2 to 6 weeks, depending on how responsive the insurer is and whether negotiations are involved.

  • Police or accident report
  • Repair estimate or invoice
  • Proof of vehicle value (before/after)
  • Vehicle history report
  • Third-party appraisal (optional but helpful)

It’s not required—but it can help. Professional diminished value reports or auto appraisals can strengthen your case, especially if the insurance company pushes back on your estimate.

Yes. If the insurer denies or undervalues your claim, you can:

  • Ask for a written explanation
  • Submit a counter-offer with documentation
  • Hire a third-party appraiser
  • File a complaint with your state’s insurance department
  • Contact an attorney or claims advocate

Yes. You are not required to accept the first offer. You can negotiate or reject it if it doesn’t reflect your car’s true loss in value.

Not for the same vehicle and accident. If you’ve already been compensated for diminished value for a specific crash, you typically can’t file again for the same damage—even if additional losses appear later.

No, not if you’re filing against the at-fault driver’s insurance. These are third-party claims and usually won’t impact your own premiums.

Yes, but it’s usually a last resort. Most claims are settled out of court. If you have clear evidence and the insurer is acting in bad faith, you may want to speak with a local attorney to evaluate your options.

That’s exactly what a diminished value claim is meant to address. Even minor repairs noted in your car’s history can reduce its trade-in or resale price. If you weren’t at fault, you may be entitled to compensation.

You can still pursue diminished value against the at-fault party’s insurer, even after using your own insurance to cover repairs. This is called subrogation, and your insurer may assist—or you may file directly once repairs are complete.

Texas, Georgia, North Carolina, and a few other states are favorable for diminished value claims. In these states, you may have stronger rights—and longer time limits—to recover value loss.

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