Car accidents can result in diminished value because most people would rather purchase a car with no accident history. If buying a car, get a vehicle history report to discover any past incidents.
Diminished value refers to the value a car loses after involvement in an accident. The amount of value lost depends on a variety of factors, including the car's year, make and model, along with the type of accident.
Even if your car's repairs appear to match its pre-accident condition, the incident still diminishes its value. The resale or trade-in price will drop accordingly.
Subpar repairs can result in repair-related diminished value. If, for example, fixing a subpar repair would cost $200, you would add that amount to the inherent diminished value.
If your car was involved in an accident, file a diminished value claim with your insurance company. Generally, the claims worth pursuing involve cars with a pre-accident value of at least $10,000 and at least $2,000 worth of damages, according to Advocate Auto Claims, a diminished value consultant. Statute of limitations apply but vary by state.
