Diminished value refers to the loss in value of a vehicle involved in an accident after the repairs have been done. For example, let’s say you purchased a new car valued at $35,000 and you’re involved in an accident at no fault of your own. You pick up your car after the repairs are
complete and subsequently try to sell the car to a dealer, but the dealership is only willing to pay you $27,000 after discovering that your vehicle has been in an accident. They say your car lost value as a result of the accident and will not offer you anymore than $27,000. You have lost $8,000 in value as a result of an accident caused by someone else’s negligence.

The amount of diminished value will depend on several factors including:

• The severity of the damage. Usually, the more extensive the damage the more likely your car is to sustain a loss in value.
• The quality of the repairs
• Your cars mileage at the time of the accident
• The car age, make and model

Filing a claim starts with a proper car appraisal. There are various services that will offer to sell you an appraisal report but provide no help in dealing with the insurance company. We can handle the claim from start to finish with no cost or fee unless we make a recovery for you.

Usually, the value of a car after repairs is less on the market once the potential buyer learns that it has been in an accident. If you’re driving a high-end car, the loss in value can be significant. If you were not at fault for the accident then you have a right to recover the value lost from the at fault driver and their insurance company.

The at-fault insurance company is obligated to pay for the property damage caused by its insured up to the policy limits of its insured’s policy. Diminished value falls within the scope of “property damage.”

In Florida, you have four years to file a claim for diminished value after the date of the accident.