Diminution (loss) of Value

After an accident, and after repairs have been made, if a vehicle is worth less than it was before the accident, its value has diminished. That difference in market value is called diminution of value. Most auto insurance policies exclude coverage for diminution of value.

If your damages are being paid by the "at-fault" driver's insurance, you may be owed compensation for diminution of value. You must prove that the value of your vehicle diminished as a result of the accident. Evidence might consist of photos, Blue Book estimates, appraisals, a receipt for the fair market value sale of the vehicle, etc.