Getting into a car accident is stressful enough without worrying about your vehicle’s future resale value. But even after repairs, your car might be worth less than it was before the crash. Sometimes significantly less. That’s where diminished value comes in. Most accident victims don’t even know they can pursue this type of compensation.
What Is Diminished Value
Diminished value refers to the reduction in your car’s market value after it’s been in an accident, even when repairs are completed perfectly. Buyers typically pay less for vehicles with accident histories. That’s reality. Picture this scenario. Two identical cars sit on a dealer’s lot with the same mileage and features. One has a clean history report. The other shows prior accident damage. Which one do you think most buyers will choose? They’ll either pick the clean vehicle or demand a serious discount on the other one.
Three Types Of Diminished Value
There are actually three categories you should understand:
- Immediate diminished value measures the difference between your car’s value right before the accident and its value immediately afterward, before any repairs happen
- Inherent diminished value represents the permanent reduction in market value even after proper repairs, simply because the accident appears on the vehicle’s history
- Repair-related diminished value occurs when repairs aren’t done correctly or don’t fully restore the vehicle to its pre-accident condition
Most claims focus on inherent diminished value. Why? Because it affects nearly every repaired vehicle with an accident record.
Massachusetts Law And Diminished Value
Massachusetts allows vehicle owners to pursue diminished value claims, but the process isn’t always straightforward. You’re essentially arguing that the at-fault driver’s insurance company owes you for the loss in resale value, not just repair costs. The state doesn’t have specific statutes outlining diminished value procedures. Instead, these claims typically fall under property damage liability coverage. You’ll need to demonstrate the actual reduction in your vehicle’s worth with solid evidence. A Waltham car accident lawyer can gather that evidence and use it to build a strong case for you.
Calculating Your Vehicle’s Lost Value
Several factors influence how much value your car loses after an accident. Age and mileage matter significantly. Newer vehicles with lower mileage generally experience higher diminished value amounts because they had more value to lose in the first place. The severity and location of damage also play a role. Structural damage to the frame typically causes more diminished value than cosmetic repairs to a bumper or door panel. Even perfect bodywork can’t erase an accident from your car’s history report, though. That record follows the vehicle. A Waltham car accident lawyer can help determine whether pursuing a diminished value claim makes financial sense in your situation.
Proving Your Loss
Insurance companies won’t just take your word that your car lost value. You’ll need documentation to support your claim. Professional appraisals from certified automotive appraisers carry the most weight. These experts examine your vehicle, review repair records, and provide detailed reports comparing your car’s current value to what it would be worth without the accident history. They’re trained to spot the difference. You might also gather comparable vehicle listings showing the price difference between similar cars with and without accident histories. Online valuation tools can provide supporting evidence, though they’re generally less persuasive than professional appraisals.
Common Insurance Company Pushback
Don’t be surprised if the insurance company initially denies or lowballs your diminished value claim. They might argue that repairs fully restored your vehicle’s value. Or they’ll say the accident was too minor to affect resale prices. Some insurers claim diminished value doesn’t apply to older vehicles or those with higher mileage. While it’s true that older cars experience less diminished value, that doesn’t mean they experience none at all. A ten-year-old car can still lose value from an accident history.
Getting Help With Your Claim
Diminished value claims require documentation, negotiation skills, and sometimes a willingness to push back against insurance company tactics. Fogelman Law LLC helps Massachusetts accident victims recover full compensation for their losses, including often-overlooked diminished value claims. If you’ve been in an accident that wasn’t your fault, don’t leave money on the table. We can evaluate whether a diminished value claim makes sense for your situation and handle negotiations with the insurance company on your behalf. Contact us today.
