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Damages

What is Diminished Value?

The reduction in a vehicle's market value after it has been damaged in an accident and repaired, compared to a similar vehicle that was never damaged.

Understanding Diminished Value

Even after quality repairs, a vehicle with accident history typically sells for less than an identical vehicle with no accidents. Some states allow recovery of diminished value from at-fault drivers' insurance, while others do not.

Examples

  • 1Repaired car selling for $3,000 less due to accident history
  • 2Claim for inherent diminished value after collision
  • 3Expert appraisal documenting post-repair value reduction

Why This Matters in Legal Cases

Diminished value is an often-overlooked category of damages in car accident cases. Even after professional repairs, a vehicle with an accident history is worth less than an identical vehicle that was never damaged. This loss is real money that belongs to the vehicle owner, yet many clients and even some attorneys fail to pursue it. In states that allow these claims, diminished value can add thousands of dollars to the recovery.

Explaining to Clients

Inform clients about diminished value claims early in the process. Explain that their car will likely be worth less on the resale market even after perfect repairs, and the at-fault driver's insurance should compensate for that loss. Recommend getting an independent diminished value appraisal from a qualified expert to support the claim with objective evidence.

Frequently Asked Questions

How is diminished value calculated?

Several methods exist. The most common is the "17c" formula (from a Georgia court case), which starts with the vehicle's pre-accident value and applies multipliers based on damage severity and mileage. However, the most reliable method is getting an independent appraisal comparing your car's post-repair value to similar vehicles without accident history.

Can I claim diminished value in every state?

Not all states recognize diminished value claims equally. Georgia has the strongest protections. Many states allow first-party diminished value claims (against the at-fault driver's insurer), while some only allow them as part of a third-party claim. A few states do not allow diminished value claims at all. Check your state's specific rules.

When should I file a diminished value claim?

File after repairs are complete but within your state's statute of limitations (usually 2-6 years). Having the vehicle fully repaired first establishes that the diminished value is due to the accident history itself, not incomplete repairs. Include the independent appraisal, repair records, and comparable vehicle listings in your claim.

Sources

Related Terms

Loss of Consortium

A claim by the spouse or family member of an injured person for the loss of companionship, affection, comfort, and sexual relations resulting from the injury.

Punitive Damages

Additional damages awarded beyond compensatory damages to punish the defendant for particularly egregious conduct and deter similar behavior in the future.

Pain and Suffering

A category of non-economic damages compensating injury victims for physical pain, emotional distress, and diminished quality of life caused by their injuries.

Future Medical Expenses

The projected cost of medical treatment, therapy, medication, and care that an injured person will need in the future as a result of their injuries.

Lost Wages

Income that an injured person loses because they are unable to work due to their injuries, including salary, hourly wages, bonuses, and other employment benefits.

Last updated: January 24, 2026
Reviewed by: Quilia Legal Content Team

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