What is “Diminished Value?”

"Diminished value" is the term used to describe the loss of value after a vehicle is involved in an accident. Take for example, two identical vehicles. Same make. Same model. Exact same equipment, color, options, and mileage. Now ... imagine that one was in an accident and the other never was. Which is worth more money?

The answer is obvious - the one that was never damaged. Even if the repair is perfect. Since the vehicle's history is readily available to disclosure by a CarFax or AutoCheck report - any potential buyer will see that damage and adjust their offer price (if they are still interested after learning that it was involved in an accident) accordingly. The diminished value, by the way, is the difference in price between the one vehicle that was damaged and the other which was never damaged.

If you want a report for diminished value, I recommend that you get an Independent Appraisal Guide Diminished Value report. Go to www.iagreport.com. They use over 40 criteria to establish the pre-accident value, post accident value, and the loss of value to the vehicle. There is no better report available - at any price.

Have you been an accident? Do you know what your car is worth?  Do you think the insurance company will give you fair value?  Would a lawyer help or is that a waste of money? Tell us your story and leave your comments below. We want to know.