What Is Diminished Value in a Car Insurance Claim?
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
← Auto Insurance: full guide · All auto insurance guides · Deductible calculator · Glossary