How do diminished value claims work?
A diminished value claim compensates a driver for the drop in a car’s resale value after an accident. If you’ve been in a car accident, your car is now worth less than it was before the damage. Even repaired, the car is now considered to have an accident history. This makes its resale value lower in the eyes of buyers.
How much does a car lose in value after an accident?
Another report from Carfax that the average vehicle loses $500 in resale value in depreciation if it has an accident on its record. The number spikes to an average of $2,100 in depreciation if the vehicle sustained significant damage.
Is diminished value negotiable?
For the most part, you won’t be able to make a diminished value claim with your own insurance company or for an accident that was your own fault. Most states impose a statute of limitations on property damage claims, usually of about three years. Act within this time frame to negotiate a diminished value claim.