What is Diminished Value?
Your vehicle loses its original market value after being in an accident. This in turn makes your vehicular value drop below the initial market value if you attempt to sell it post-accident. Even if you have repaired the damages, you still will have trouble finding a buyer to pay fair market value because of your dirty Carfax record. Therefore, the law allows you to seek a diminished value claim from the at-fault party's insurance company to recoup your lost market value.
When Should I File a Diminished Value Claim?
It is appropriate to pursue a diminished value claim once your vehicle is fully repaired to pre-accident condition. Diminished value is calculated based on the nature of the damage to your vehicle and overall evidence of repairs. A thorough review of the final bill from the bodyshop and reviewing the Carfax are a couple important factors in determining diminished value.
