Auto Insurance Claims: Recovered stolen cars diminished value, diminished value claim, value of my car

Question
Hi Richard, thanks in advance for your time in answering my questions. My car was recently stolen and recovered a week later. There were scratches on the bumper and the interior was in pretty bad shape, but the insurance company, AAA, fixed it up and did a complete detail on the car, and everything looks new again. But here's my question, my friend told me that even though my car will still have a clear title, there will be a theft and recovery in the carfax report, and the value of my car would be significantly lower now than it was before it was stolen because of the carfax report. He advised me to go to a carmax and get an appraisal for the car and get a diminished value claim against my insurance. I am located in Southern California, and was wondering if I am entitled to such a claim? And if I am, is there a time limit to doing it? I might be keeping the car for another couple of years, but just don't want to find out that I wouldn't be able to sell the car for the price on kbb.com because of this incident. Thanks for your time again.

Answer
Hi Terny,

Although in theory their may be a small diminiahed value, it will be difficult to prove. Diminished value is based on the type and  extent of the damage. Major damage that includes structural damage is what generally creates a diminished value. Since the damage to your car was minimal (some scratches and interior) all of which were taken care of, it will be hard to show a reason why someone would shy away from your car.

I think in this case you should not pursue the claim.

I hope this helps
Richard Hixenbagh