Diminished value is the reduction in your car’s resale value after it’s been in an accident, even after quality repairs. You may be able to recover it from the at-fault driver’s insurer through a diminished value claim.
Sometimes Recoverable
By the Home & Dime Editorial Team · Updated 2026
Why it happens
A car with an accident history is worth less than an identical clean-history car, even repaired well.
Recovering it
File a diminished value claim against the at-fault driver’s insurer, backed by an appraisal. Your own insurer usually won’t pay diminished value on your own policy.
Common exclusions
- Accidents you caused (your own insurer usually won’t pay)
- Older or low-value vehicles
- States that don’t recognize the claim
State considerations
Diminished value claim rules vary widely by state — some allow it against at-fault insurers, others limit it.
Claim tips
- Get a professional diminished value appraisal.
- Document the car’s pre-accident condition.
- File against the at-fault party’s insurer.
Frequently asked questions
Can I claim it against my own insurer?
Usually not — typically only the at-fault driver’s insurer.
How is it calculated?
Via an appraisal comparing pre- and post-accident value.
Related guides
Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.
Part of our Auto Insurance guide
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