What is Diminished Value?

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Diminished value refers to the automatic loss in a vehicle’s market value following an accident and subsequent repairs. Even when repairs are completed to the highest standard, the vehicle may still exhibit subtle deficiencies compared to its pre-loss condition. This loss is widely recognized in the market due to public awareness that post-repair vehicles often carry lingering flaws.

 Time Limit to File

Florida law imposes a four-year statute of limitations from the date of the accident. If you wait too long, you may lose the right to file a claim.

 What You’ll Need to Prove Your Claim

 To successfully demonstrate diminished value, you must provide clear documentation, including:

• Pre-accident appraisal: Establishes your vehicle’s original market value.

• Post-repair appraisal: Shows the reduced value after repairs.

• Trade-in value letters: Obtain written estimates from multiple dealerships to reflect real-world market impact.

• Photos of the repaired vehicle: Capture the condition from multiple angles.

• Repair work orders: Include itemized invoices and parts used. you'd like.

Diminished Value After Vehicle Repairs

Even after quality repairs, a vehicle often suffers diminished value due to remaining flaws that affect its safety, appearance, and resale value. These include structural weaknesses, mismatched paint, missing factory markings, and undetected damage.

There are three main types:

1. Repair-Related Diminished Value
   Caused by poor workmanship—such as bad welds, improper frame repairs, or use of inferior parts. Even in these cases, the insurer is responsible for restoring the vehicle to pre-loss condition and may later seek reimbursement from the repair shop.
    
2. Insurance-Related Diminished Value
   Occurs when the insurer fails to authorize or pay for all necessary repairs, uses non-OEM parts, or relies on underqualified appraisers. The insurer is liable for any loss in value due to these oversights.

  3. Immediate Diminished Value: 

              Loss in value immediately after the           

            accident, before any repairs are made.
 

In all cases above, the insurer is contractually obligated to restore the vehicle’s function, appearance, safety, and value. If they fall short, they must compensate the owner and may pursue recovery from third parties.

When You May Not Qualify for a Diminished Value Claim

Not all vehicles are eligible for diminished value compensation in Florida. Several factors can disqualify a claim, including:

     • Vehicle value under $7,000 – Low-value vehicles often don’t meet the threshold for a viable claim.

• Signed release of liability – If you’ve signed this form, you’ve waived your right to pursue compensation.

• Minimal damage – Claims require clear evidence of significant loss in value.

• Excessive mileage – Vehicles driven more than 30,000 miles per year may be excluded.

• Vehicle age over 10 years – Older vehicles typically don’t qualify for diminished value recovery, unless the vehicle is considered a classic vehicle

• Salvaged or rebuilt title –  These vehicles are already considered compromised in value. 

• Pre-existing damage – If your vehicle was damaged before the most recent accident, it may not qualify.

• Total loss – If your vehicle was declared totaled, diminished value does not apply.

• Expired statute of limitations – Claims must be filed within four years of the accident date.

If you’re unsure whether your vehicle qualifies, please give us a call for a free consultation.