Diminished Value – Your Insurance Company’s Best Kept Secret
Diminished Value is the best-kept secret that your auto insurance company hopes you never learn. While the term, diminished value, may be a relatively new one to consumers, insurers are well aware of its existence, having paid claims to both insureds and claimants for more than eighty years.
What is Diminished Value?
Diminished Value is the term given to the loss in market value a vehicle suffers as a result of an accident and repair. It is a loss based on the beliefs of most people, that once goods become damaged, they are never as valuable as they would be had they never suffered injury.
If the damage was determined to be a total loss, what your car was really worth before the accident.
What is Diminished Value really is?
Diminished Value is the amount you’re not going to get when you sell you car because it’s been in an accident. If your vehicle suffered significant damage in an accident that was not your fault, you are entitled to file a claim for the Diminished Value.
- A reasonable buyer will not pay the same price for a vehicle with an accident history.
- By law you are required to disclose the accident history of a car when you sell it.
- No matter how good the repairs are, no one can “fix” the Carfax report.
- Your repaired car can never qualify as a Certified Pre-Owned vehicle.
What can you do?
Call your local Auto Appraisal Network appraiser who can determine the Diminished Value of your car as a result of an accident.
Any portion of a Diminished Value or Prior to Loss claim that is not paid, can also be written off on your itemized income taxes including the appraisal fee to have the diminished value appraisal performed.
Use IRS Form 4684 for itemizing Diminished Value and appraisal fees on your taxes.