Many people think the value of their car will always be the same even after a car accident but the simple truth is, it will never be worth the same. Diminished value is the amount lost because of a car accident on the car history. It is a stigma that all people believe automatically all cars involved in a car accident are worth less and because of it incur Diminished value.

The second part, insurance companies say diminished value doesn’t exist because simply if you tell 1000 people that something is not real only 100 or less will open a claim.

People believe the amount of repairs is the reason for diminished value, though this is true it is only one part. If you take vehicle A and Vehicle B. Now Vehicle A has $500 repairs damage and vehicle B has $3000 damage. You would think Vehicle B has more diminished value but it is not true as a rule.

If Vehicle A is a luxury brand or has frame damage it could easily be worth 3-5x more diminished value than vehicle B it is depending on many factors.

American Insurance Advocate Group – The Diminished Value Experts