When can you not file a Claim for Diminished Value Losses?

Diminished Value is fairly new and the supporting case law is in its infancy and laws vary from state to state, but the consensus in nearly all states is that you cannot file a claim with your own insurance company for Diminished value if you were at fault in the accident. While your car most likely has suffered Diminished Value, the coverage that pays another person for their property damage doesn't cover your own property beyond the cars accident damage, therefore by your policy provisions you’re not covered for Diminished Value losses under your own coverage.

Because of the method of determining how to calculate Diminished Value, cars with salvaged title have not suffered Diminished Value as the Prior to Loss value of a Salvage title car that has been repaired hasn't changed because of the repaired accident damage. When a salvage title car is in a severe accident it’s most likely going to be totaled anyway and the only time a salvaged title vehicle would be repaired is if it were only cosmetic damage so there would be no significant loss as a result of the accident.

Prior accident damage that has been repaired is very much the same as a car with a salvage title. The vehicle lost it’s accident free status that brings the premium resale value in the first accident. Because of the premise of Diminished Value, you can only claim diminished value for the first accident a car has. Just like driving it off the dealer lot when it was new it’s only new once and as soon as you drive it off the lot it depreciates. A car is only accident free once and you can’t claim diminished value losses after the first accident.