What Does It Mean If My Vehicle Has a Diminished Value?

It is normal for people to focus on auto repair cost estimates in the weeks and months following a collision. But there’s another important factor that can impact the true compensation owed to you, and that is a vehicle’s diminished value.

To learn more about how diminished value could affect your compensation, have a conversation with a Boca Raton personal injury lawyer. Legal professionals are available to advocate for your vehicle’s true worth.

What is Diminished Value?

Diminished value is the reduction in a vehicle’s resale or trade-in value after it’s been in an accident, even if it has been repaired. Buyers and dealers may see an accident history as a red flag, often because collision repairs may not restore the car to its original factory condition or because the stigma of an accident makes the car less appealing to future buyers.

In Florida, drivers are allowed to pursue diminished value claims, but they must prove the vehicle’s value has decreased specifically. This can be more challenging than it sounds, but the difference in value can be substantial, especially for newer vehicles.

There are three types of diminished value commonly recognized in Florida.

• Immediate diminished value. A reduction in a vehicle’s value directly after the accident but before any repairs are made is referred to as an immediate diminishment.
• Inherent diminished value. This type of diminished value represents the lasting reduction in value after repairs. Even if the car is fully repaired, it’s generally worth less solely because it has a recorded accident history.
• Repair-related diminished value. If there is evidence of shoddy repair work, visible defects, or substandard parts, these issues can further reduce the vehicle’s resale value.

Insurance companies often focus on covering immediate repair costs but may not consider diminished value unless it’s specifically requested. If you’re unaware of diminished value claims, you may not be fully compensated for your true loss.

How Can I Pursue Diminished Value Compensation?

From assessing the car’s pre- and post-accident value to negotiating with insurers, there are a range of professionals who are available to ensure you are fully compensated. For example, an auto repair expert can thoroughly assess your car post-repair and provide an accurate estimate of its current value versus its pre-accident value. Their assessment can also reveal any repair-related diminished value.

Additionally, appraisers can provide a detailed report on your vehicle’s current market value. They consider factors like the vehicle’s age, model, and accident history to produce an accurate assessment.

If you need help moving through the recovery process, partner with an experienced Boca Raton personal injury lawyer. Work with a professional who can guide you through the complex claims process, advocate for your rights, and communicate with insurance adjusters.

Are you concerned about how much your car is worth after a crash? If you believe your vehicle has lost value due to a Florida collision, chat with the attorneys at Leifer & Ramirez about your recovery options. Following an accident in Delray Beach, Deerfield Beach, or Pompano Beach, call 561-660-9421.