Recoupe

Q&A

What is a diminished value claim?

A diminished value claim recovers the resale value a car permanently loses after an accident, even when fully repaired, because the accident appears on the vehicle's history report and reduces buyer interest. The claim is made against the at-fault driver's insurance company, separate from and in addition to repair costs the insurer already paid.

How much is a diminished value claim worth?

Estimates vary widely based on the car's value, repair cost, and history. Typical claims for common cars and repairs land between about $1,000 and $5,000. The strongest factor is repair cost as a percentage of pre-accident value; newer, lower-mileage, and premium vehicles tend to lose the most value.

Can I file a diminished value claim in my state?

A not-at-fault driver can recover diminished value in 46 states and DC. The four exceptions are Michigan, Nebraska, New York, and North Dakota, which either bar such claims, do not allow recovery after full repair, or fix damages at repair cost only.

How long do I have to file?

The deadline depends on your state's statute of limitations for property damage, which ranges from two to ten years from the accident date. You should file as soon as repairs are complete, because claims brought years later are harder to document and easier for adjusters to question.

Will filing a diminished value claim raise my insurance rates?

A third-party diminished value claim is made against the at-fault driver's insurer, not your own, so it is not a claim on your policy. Whether the underlying accident affects your rates depends on your insurer and state. Only if you pursue a first-party claim against your own collision coverage does it become a claim on your policy.