Once your vehicle is damaged in an accident, it loses value. The loss in value occurs because the vehicle will show up on a CARFAX™ report and when you attempt to sell or trade in the vehicle at a later date, you will receive less money for it. The vehicle is now considered damaged goods. It does not matter that the vehicle has been properly repaired, it still loses value by the mere fact that the vehicle now has an accident history. The term “diminished value” refers to the loss in value that a vehicle sustains as a result of being involved in an accident.
At The Collision Law Center, we work with top notch experts to determine how much a vehicle was worth before an accident and how much it is worth after the accident. This difference in value is the amount of money that we attempt to recover from the at-fault party. We handle our diminished value claims on a contingency fee basis, which means that we only take a fee if we are successful in recovering money for you.
Let’s say your vehicle is worth $36,200 before the accident. The accident occurs and the vehicle is repaired by an auto body shop. The cost of repairs is $4,750. It is determined that your vehicle is now worth only $31,000. In this case, your vehicle has suffered $5,200 in diminished value.