A car that has been in a collision is worth less than an identical car that has not, even after a flawless repair. That gap is diminished value, and it is real money the owner loses without anything being visibly wrong.
Why does a car lose value after an accident repair?
Buyers discount accident history. Trade-in appraisals discount it. The repair can be perfect and the paint can match precisely, and the car still shows a reported accident when someone runs the history. The market prices that uncertainty whether or not it is justified in your particular case.
What are the three kinds of diminished value?
Inherent diminished value is the loss attributable purely to the accident being on record. It is the type people usually mean. Repair-related diminished value is the additional loss when the work itself is below standard: mismatched paint, panel gaps, overspray. Insurance-related covers loss from the use of parts other than original equipment.
What affects the amount of diminished value?
Vehicle age and mileage, because a newer car loses more. The severity of the damage, particularly whether it was structural. Whether the repair was cosmetic or involved the unibody. And the make, since some brands hold value better and therefore lose more of it.
What evidence helps a diminished value claim?
The full repair file, including the estimate, any supplements and the parts list. Photographs of the damage before repair. An independent appraisal of the vehicle’s value before and after. And the vehicle history report showing what has been recorded.
When can I claim diminished value?
Most often when you were not at fault, since the claim is generally made against the other party’s insurer rather than your own. If you are the at-fault driver, your own policy is unlikely to cover it.
How does repair quality affect diminished value?
You cannot remove the accident from the record. You can make sure the repair does not add a second layer of loss on top of it. That means proper structural measurement, correct refinishing and documentation you can hand to a buyer. See our collision repair process.
Related: insurance claim repair and collision repair.