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Diminshed value claim or diminution on value of my car?

by Jim

I had a 9 month old car. 350Z. Sitting at a stoplight when the truck behind me hit the passenger side back. Vehicle had to be towed. 2 months later i get the car back repair bill 11,500 dollars.

Some small frame damage. Submitted claim for diminished value and the other insurance company stated that that i was not going to get diminished value. Because car was returned to original shape.

Yeah right. I got estimates in my area to see what the car was worth. Now they are collecting information on actual cash value and their own diminished value number. Is acv the number that cars are going for in my area?


A Diminished Value is a hard claim to make. Visit the link below for detail information about this type of claim.

The one thing to note is this: Many states do not allow for “diminished value claims” for first party insured. If you are dealing with your own insurance company, it is likely that you cannot this claim.

However, if you are dealing with someone else’s insurance (the person that hit you), you are entitled to this claim.

Insurance companies will use the Actual Cash Value to determine what your car was worth the day of the accident (what your car was worth as a 9 month old vehicle). They will depreciate the 9 months from you.

They will fight you very hard and argue that the car was put back to pre accident condition and therefore there is no “diminished value.” They will try to get values of the same car showing that your car would sell for at least that amount, thereby, not owing you anything.

The question is, would you pay the same amount of money for a car that is 9 months old with $11,500 worth damages (including frame damage) even though is fixed? Or would you pay more or the same car but with no problems?

Insurance companies will argue that you would, which you and I know is not true.

There are two things you really need to do to arm yourself.

1. Get the Carfax report of your own car. Show that the damage to your car is PUBLIC RECORD. Everyone knows that your car has been in a wrecked.

2. Go to the dealership and talk to the person that sold you the car. Tell them what happened and ask you to give you a letter of how much they would take your in a trade in. Both in a car without any problems and the car with the Carfax showing the frame damage. The difference should be your diminished value.

Good Luck

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