What is Diminished Value

Very simply, Diminished Value is the difference in value between a vehicle with an accident history and the same vehicle without an accident history. This is also known as “Loss of Market Value”.

Depending on the extent of damage to your auto, a Diminished Value claim can be filed. There are a number of factors including the pre-loss condition, year, make, model, the type of accident the vehicle was in, the amount of damages the vehicle suffered and other factors. Click to get a free Diminished Value estimate.

Example:

The vehicles below are the same year, make and model. They have the same mileage, options and are in the same general condition. The sticker price for both vehicles is $23,000. The vehicle on the left has no accident history and the vehicle on the right had sustained $7,500 collision damage, but the repairs were done by a quality collision repair shop and you cannot tell there was ever any damage. Vehicle values are based on the perception of the buying public. As is the case with any item of value, the fact that a vehicle has been damaged and repaired will have a negative effect on its value. As a result the vehicle on the right is now worth $19,000. That’s $4,000 in Diminished Value!

Collision History:

Most consumers today utilize numerous information sources when making a purchasing decision. With the creation of several Internet based vehicle history reporting companies, such as CARFAX or AutoCheck, it is easier than ever before to research the history of a vehicle. These companies use more than 20,000 data sources including every U.S. and Canadian provincial motor vehicle agency plus many auto auctions, fire and police departments, collision repair facilities, fleet management and rental agencies, and more. As a result, consumers are better equipped today to instantly assess the condition and history of the vehicle they may consider to purchasing.

Additionally, most dealerships will simply refuse to accept trade-ins with a damage history due to damage disclosure laws. Vehicles that are damaged and repaired and accepted as trade-ins are usually sent to auction for disposal due to disclosure laws and liability concerns. All major vehicle auctions require an announcement of damage prior to auction.

Bottom Line:

If you were not at fault in the accident, the at-fault party’s insurance company owes you money. This is true in all 50 states. Even though the insurance companies may try to tell you they don’t pay on your repaired auto Diminished Value claim, when we provide proof of your loss, they will. Don’t let the insurance company tell you differently. http://www.advocateautoconsultants.com