Diminished value of a vehicle after an accident
Even after a perfect repair, a car that has been in an accident is worth less on the market. That difference is called diminished value — and you can claim compensation for it.
What diminished value is
It is the difference in the market value of the vehicle before and after the accident — because buyers pay less for a car with a damage history, even when the repair is flawless.
When you are entitled to it
- You are not at fault for the accident (the claim goes to the other driver's insurer),
- the vehicle is relatively new and valuable,
- the damage was substantial (not a small scratch).
How it is obtained
Diminished value is not paid out automatically alongside the repair. It is obtained by making a claim, and most often through a private lawsuit against the other driver's insurer, supported by an expert's report establishing the amount.
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Is diminished value paid out automatically?
No. It is not paid alongside the repair — it has to be claimed separately, most often through a lawsuit.
Who is entitled to compensation?
As a rule, the owner of a newer and more valuable vehicle who is not at fault for the accident, where the damage was substantial.
How do I prove the amount?
With an expert's report assessing the difference in market value before and after the damage.
Do I need a lawyer?
Often yes — because the compensation is usually obtained through a private lawsuit against the other driver's insurer.
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Note: this guide is general information, not legal or insurance advice. For your own case, speak to a damage-compensation professional.