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495+The short answer: Even after quality repairs, a wrecked vehicle is usually worth less at resale than one that hasn’t been wrecked. That lost value is called diminished value, and the at-fault driver’s insurance company may owe you the difference. A diminished car value claim is separate from the claim that pays for repairs to your vehicle.
You get your car fixed after a crash in Downey and figure you’re done. Then you go to trade it in and hit a hard truth: buyers pay less for a car with an accident on its history report, no matter how clean the repairs look. You didn’t cause the wreck. Why should you eat that loss? You shouldn’t. Here’s how a diminished car value claim works in California.
In this article, we discuss:
– What a diminished value claim is
– How to claim diminished value of a car after an accident
– Whether you can claim diminished value on a totaled car
– Why insurance companies fight these claims
– How the JLF Firm’s Downey car accident lawyers can help
What is a diminished value claim?
A diminished value claim seeks payment for the loss in resale value your car incurred simply because it was in a crash. Two identical vehicles, one with a clean history and one with a repaired collision on record, will not sell for the same price. The repaired one sells for less. That gap is your diminished value.
This is not the same as a standard repair claim. A repair claim pays the body shop to fix dents, frame damage, and paint. A diminished value claim covers the loss in value your car still has, even after those repairs are done right. You can pursue both.
How do you claim diminished value of a car after an accident?
You claim diminished value by documenting how much resale value your vehicle lost and then presenting that evidence to the at-fault driver’s insurer. California doesn’t lock you into a single rigid formula, so the strength of your evidence really matters. The most persuasive proof usually includes:
– An independent appraisal from a qualified appraiser who inspects your specific vehicle
– Comparable sales data showing what similar cars sell for with and without an accident history
– Repair records and the vehicle history report documenting the damage
Newer, low-mileage cars that hold their value tend to lose the most. Solid documentation makes it much harder for an insurer to lowball you.
Can you file a diminished value claim on a totaled car?
Generally, no. When an insurer declares your car a total loss, it is supposed to pay you the vehicle’s fair market value right before the crash, which already reflects its value. Since you’re being paid for the whole vehicle, there’s no separate diminished value left to recover.
There is an important exception. If you think the insurer undervalued your total loss, that valuation is worth challenging. Insurance companies routinely calculate fair market value on the low end, and pushing back on a lowball offer can put real money back in your pocket. Before you accept a total loss check, let our Downey team review it for free.
Why do insurance companies fight diminished value claims?
Insurance companies routinely dispute diminished value claims simply because compensating vehicle owners fairly reduces their bottom line.
Insurers will argue your car didn’t really lose value. The JLF Firm knows their playbook and common arguments. Insurers will say things such as: the damage was minor, the repairs were done perfectly, or there wasn’t enough value in the original vehicle.
They’re counting on drivers not knowing diminished value exists at all.
Founded by Jeff Fayngor to stand up for injured individuals across Southern California, The JLF Firm holds insurance companies accountable when they try to underpay you. Our full team of attorneys and legal assistants handles your case from start to finish, building the evidence that makes a diminished value claim difficult to deny.
When you’ve been in a crash, you need a legal professional who will get you the maximum compensation you deserve.
Frequently asked questions about diminished value claims
How long do I have to file a diminished value claim in California?
A diminished value claim is a property damage claim, and California Code of Civil Procedure § 338 gives you three years to bring an action for injury to goods or chattels, which includes your vehicle. That’s longer than the two-year deadline for personal injury claims under § 335.1. Still, don’t wait. Evidence fades, and cars get sold.
What if I were partly at fault for the crash?
California follows pure comparative negligence, so being partly at fault doesn’t bar your claim. Under Li v. Yellow Cab Co. (1975) 13 Cal. 3d 804, damages “shall be diminished in proportion to the amount of negligence attributable to the person recovering.” If you were 20% at fault, you could still recover 80% of your diminished value.
How much does it cost to hire The JLF Firm?
Your first consultation is free, with no obligation to hire us. If you do, we work on a contingency-fee basis, so you pay nothing upfront and never receive an hourly bill. Our fee is a percentage of the compensation we recover and is collected only if we win or settle your case. If we recover nothing, you owe no attorney’s fee. That removes the financial risk and keeps our interests aligned with yours, because we only get paid when you do.
Contact The JLF Firm’s Downey team
Don’t let an insurance company decide what your car is worth. Schedule a free consultation with our Downey car accident attorneys at The JLF Firm and find out what your diminished value claim is really worth. Call our Downey office at 888-341-3071, or visit us at 8255 Firestone Blvd, Suite 502, Downey, CA 90241. When you’ve been injured, you need a pro.
