Diminished value in brief
- It's the value your car loses after a crash.
Even when repaired well, an accident history can lower resale value.
- It's usually claimed by the not-at-fault driver.
Typically against the at-fault driver's insurer.
- You generally have to prove the loss.
Often with an appraisal comparing before and after.
- Whether you can claim depends on your state.
The rules vary, and some make it harder than others.
Diminished value is one of the less obvious losses after a crash, and it is easy to overlook. The idea is simple: a car with an accident on its history is usually worth less than one without, even if the repair is flawless. This pairs with what to do when it wasn't your fault.
A buyer will almost always pay less for a car that has been in a crash — however well it was fixed. That gap is the diminished value.
What diminished value is
When your vehicle is repaired after an accident, it can be restored to working order and still be worth less on the market, because the accident now shows in its history. Diminished value is that difference: the gap between what the car would have been worth without the accident and what it is worth with it.
The main types
Inherent diminished value
The loss in value simply from having an accident on record, even after a perfect repair. This is the most commonly claimed type.
Repair-related diminished value
Extra loss when repairs are imperfect or incomplete.
Immediate diminished value
The difference in value right after the crash, before repairs — more relevant to total-loss situations.
When a claim may apply
A diminished value claim is most common when you were not at fault and are claiming against the other driver's insurer. Claiming diminished value from your own insurer after an at-fault crash is generally much harder or unavailable. Newer vehicles with low mileage tend to have the strongest claims, because they had the most value to lose.
How the loss is assessed
You usually need to show the loss rather than simply assert it. That often means an independent appraisal that estimates the car's value before and after the accident, supported by the repair records and the vehicle's history. Keep all your documentation together.
Why state rules matter
Whether and how you can pursue diminished value depends heavily on your state — the rules, time limits and the insurer's obligations all vary. Treat this guide as the general picture, and check the specific position where you live, or get advice.
When it's worth talking to someone
Diminished value can be worth real money on a newer car, and insurers do not always volunteer it. If yours is disputed or declined, a free, no-obligation conversation can help you understand your options.
- Diminished value is the value lost because of an accident history.
- Inherent diminished value is the most commonly claimed type.
- It is usually claimed by the not-at-fault driver against the other insurer.
- You generally need an appraisal to prove the loss.
- Whether you can claim depends on your state.
Common questions
What is a diminished value claim?
Who can claim diminished value?
How do I prove diminished value?
Can I always claim diminished value?
Sources & how we keep this accurate
Written and edited by The Accident Advisory editorial team and checked against recognised insurance and consumer sources. Diminished value rules vary by state. Last reviewed June 2026. (See our Editorial Policy.)
- Insurance Information Institute (III) — vehicle value and total-loss claims. iii.org (accessed June 2026).
- State departments of insurance — diminished value and third-party claim rules (varies by state). (accessed June 2026).