diminished value explained

What you need to know about diminished value, and how to file your diminished value claim.

Diminished value defined

Diminished Value has been defined by the Oklahoma courts as the difference of the fair market value of the property immediately before being injured, and the market value after repairs have been or would be made. With reporting agencies such as CarFax and Autocheck, a wreck history can substantially lower the value and marketability of your vehicle.

Three types of diminished value


Immediate diminished value is the difference in value of the car from before the accident and after the repairs have been made.


Inherent Diminished Value is the idea that an un-wrecked car will sell for more than the same vehicle with damage history.


Repair-related diminished value relates to the quality of the repairs such as a mismatch in the color.

How an accident affects your car's value.

Your car loses value just because it was in an accident and repaired. Once your vehicle is sold or traded in you will suffer diminished value. Proper repairs to the vehicle will never recover this amount.

A car that is sold of the same year, make, model, mileage, and condition will certainly sell more un-wrecked than with an accident history. In some cases depending on the severity of the damage, dealers may refuse to take your car at all.

Cases such as this usually involve airbag deployment or structural damage. For the Oklahoma statute on diminished value, click here. A diminished value claim can help you recover the value lost in your vehicle from being involved in an accident.

Diminished Value Claim

recover your loss by making a Diminished value claim

Diminished value claim

This is a request for an amount of money from the insurance company for compensation for the difference between your car’s value before the repairs (pre-accident) and its value after repairs (post-accident).

Who pays?

The insurance company will pay you for diminished value in third party claims. Meaning if you were not at fault you could be entitled to a diminished value claim.

How to get paid

To ensure you get a fair offer you will need a certified appraisal estimating the loss of value. At Collision Safety Consultants we handle the entire process for you to maximize your settlement.

How to make a diminished value claim

How to file a diminished value claim

What if my claim is denied?

It is common for insurance companies to either deny your claim or offer a low unsubstantiated amount. The insurance company  is hoping that you take their initial offer and go away. You do not have to accept a rejection or low-ball offer from the insurance company.

First, try to negotiate with the insurance company as much as you can. If your negotiations lead nowhere, then you have the option of filing a small claim or a civil case against the insured who hit you. If you win your case, the insurance company will be responsible for the judgment and any court costs, and attorney fees.

It is always advised to seek the assistance of a professional diminished value service such as Collision Safety Consultants. Many of these services offer free consultations and evaluations.

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