Can I Get Diminished Value for My Car After an Accident?
Even after your car is fully repaired following an accident, it may have lost value. This is called diminished value, and in Texas, you may be entitled to compensation if another driver caused the accident.
1. What is Diminished Value?
Diminished value is the difference between your car’s market value before the accident and its value after being repaired. Even perfect repairs cannot fully erase the fact that your vehicle has been in a collision. Potential buyers or dealerships may view a car that has been in an accident as less desirable, which lowers its resale or trade-in value.
2. Types of Diminished Value
There are generally three types of diminished value claims:
Immediate Diminished Value – The reduction in your car’s market value immediately after repairs.
Inherent Diminished Value – The most common type; reflects the stigma of an accident on the car, even if repairs are perfect.
Repair-Related Diminished Value – Occurs if the repair work was poorly done or parts used are inferior.
Most insurance claims focus on inherent diminished value.
3. Who Pays for Diminished Value?
In Texas, the at-fault driver’s insurance company may be liable for diminished value. Your own insurance may not cover this unless you have specific coverage. This is why it’s important to document the accident and repairs and make your diminished value claim as soon as possible.
4. How to Claim Diminished Value
Get an independent appraisal – A professional can assess your car’s pre- and post-accident value.
Gather repair documentation – Include repair invoices and photos.
Work with an attorney – An experienced personal injury or insurance attorney can help negotiate with the insurance company to ensure you are compensated for the loss in value.
5. Why You Need Legal Guidance
Insurance companies may try to minimize or deny diminished value claims. An attorney can:
Accurately calculate the amount of diminished value
Handle negotiations with the insurance company
Protect your rights if the insurance company refuses to pay
Without proper guidance, you may leave money on the table, even if your car was clearly worth less after the accident.
