JUSTICENTER Personal Injury Lawyers | May 2, 2025 | Car Accidents
If your vehicle has been in a car accident, that damage will likely appear in vehicle history reports. Most buyers today use these reports, such as CarFax, to learn more about how the vehicle was used and maintained by previous owners. A vehicle with no accidents is almost always worth more than similar vehicles that have been involved in an accident.
A diminished value claim may allow you to recover the difference in your car’s value prior to an accident versus after the accident. There are a few different types of these claims you may bring in California, although proving them can sometimes be a challenge. Keep reading below to learn all the details.
Types of Diminished Value Claims in California
Most people who have been in an accident know that they can recover compensation for their medical bills, lost wages, and pain & suffering if the other driver was at fault. Economic damages available after an accident also include property damage. Not only does this cover repairs to your vehicle, but it can also include these types of diminished value claims:
Value Diminished by Stigma
This is one of the most common types of diminished value claims. Most buyers prefer not to purchase a car that has been involved in an accident. This is one reason for the recent rise in popularity of vehicle history services. If a potential buyer finds that the vehicle has been in an accident, they will more than likely expect a lower price.
Immediate Diminished Value
This type of claim is rare, and it involves the diminished value of the vehicle immediately after the accident, before any repairs are made. The reason why these claims are rare is because the insurance company almost always pays for the repairs to the vehicle. Once the repairs have been made, this type of claim no longer has applicability.
Value Diminished by Repairs
Not all repair shops perform the same quality of work. Some repair facilities perform better work than others, so your vehicle’s value could be diminished because of the quality of work that was done. For instance, the shop may have:
- Installed used or aftermarket parts
- Cut corners when performing certain aspects of the work
- Not matched the paint perfectly with the rest of the vehicle
Even though the repairs may be good enough to make your car safe and reliable again, it may be far from perfect. These types of repairs can ultimately reduce the value of your vehicle.
Proving a Diminished Value Claim
Proving a diminished value claim can be challenging. More than likely, the insurance company will attempt to pay you as little as possible for this type of claim. They will likely demand lots of evidence before they even pay the claim.
Proving a diminished value claim starts with proving the value of your car prior to the accident. You can use tools like NADA, Kelley Blue Book, and local listings to calculate how much your vehicle should be worth. When checking local listings, be sure to look for the same year, make, and model with similar options and mileage.
Once you have determined the pre-accident value of your car, you will need to determine how much it is worth after the accident. This may require getting a valuation report from an appraiser or visiting your local car dealer to get an offer on your vehicle. Once you have the current value of your car, you can present all your evidence back to the insurance company as part of your claim.
How Much Is My Diminished Value Claim Worth?
Unfortunately, diminished value claims are almost never worth as much as the vehicle owner expects. The insurance company usually makes its own determination about the value of your claim, and these claims are typically worth no more than 10% of the pre-accident value of the vehicle.
If the damage to your vehicle was only minor to moderate, then this amount is reduced even further. Similarly, your claim may be reduced based on the mileage of your car and whether it was in a previous accident. In most cases, diminished value claims are worth less than $3,000. However, if you believe the insurance company is trying to take advantage of you, it is always a good idea to talk to a lawyer who can help.
Contact the Encino Car Accident Lawyers of JUSTICENTER Personal Injury Lawyers for Help Today
Please contact an experienced car accident lawyer at JUSTICENTER Personal Injury Lawyers for a free initial consultation today at (833) 852-3600.
Our main office is in Encino, CA, but we serve all through Los Angeles County.
JUSTICENTER Personal Injury Lawyers
16633 Ventura Blvd suite 1011,
Encino, CA 91436
