Car Value Back

What Is Diminished Value?

Diminished value is the gap between what your car was worth before an accident and what it's worth after — even after repairs are complete. A buyer looking at two otherwise identical used vehicles will pay less for the one with an accident on its history report. That price difference is your DV loss.

Can You File a Diminished Value Claim?

If the accident was not your fault and the other driver carried liability insurance, you likely have a viable third-party DV claim — filed against the at-fault driver's insurer, not your own policy. First-party claims against your own coverage are blocked in most states. No-fault states add restrictions. If you're in Michigan, Florida, or another no-fault state, the rules differ for certain coverage types.

Do You Need a Lawyer or a Claim Company?

For most third-party DV claims, you don't. The process is document-heavy but not legally complex — you're filing a written demand, negotiating with an adjuster, and escalating to small claims court if needed. Law firms and claim services often take a cut of your recovery, which reduces your net payout. An attorney makes sense when the disputed amount is substantial or the insurer denies liability outright.