What is a Diminished Value Claim, and Can I File One?

Your car has been in an accident in Tacoma. After weeks at the body shop, it’s finally repaired. It looks good, drives well, and the insurance company has paid the repair bill. Case closed, right? Not necessarily. While your car may be physically restored, it now has a permanent, invisible scar that has significantly damaged its financial value: an accident history.

The simple, unfortunate truth is that a car with an accident on its record is worth less than an identical car with a clean history. If you were to sell or trade in your vehicle, you would have to accept a lower price purely because it was in a crash.² This loss in market value, even after perfect repairs, is called diminished value.³

In Washington State, you have the right to be compensated for this loss. A diminished value claim is a request to the at-fault driver’s insurance company to pay you for this drop in your vehicle’s resale value.⁴ It is a real, recoverable damage, but one that insurance companies rarely volunteer to pay.

Useful Information for You: In a Nutshell

• Definition: Diminished value is the loss in a vehicle’s market value after it has been damaged and repaired in an accident.⁵
  
   
• Can You File a Claim? In Washington State, you can generally file a diminished value claim against the at-fault driver’s insurance company.⁶ You typically cannot file one against your own insurer.
  
   
• It’s About Resale Value: The claim is to compensate you for the fact that your car, now with an accident history, will sell for less than an identical car with no accident history.⁷
  
   
• Proof is Required: You cannot just guess the amount. You must prove the loss in value, usually with a professional appraisal from a qualified expert.⁸
  
   
• Insurance Companies Resist: Insurers often fight these claims or make very low offers.⁹ Proving your claim requires persistence and proper documentation.
  
   

Understanding the Types of Diminished Value

While the concept is simple, there are technically three types of diminished value:

1. Immediate Diminished Value: The immediate drop in value right after an accident, before any repairs are made.¹⁰ This is a temporary state.
   
    
2. Repair-Related Diminished Value: Loss of value due to poor quality repairs, such as mismatched paint or the use of non-OEM parts.¹¹
   
    
3. Inherent Diminished Value: This is the most common and important type. It is the loss of value that exists even after your vehicle has been perfectly and completely repaired. The stigma of having a documented accident history permanently reduces its market value.¹² This is what your claim will be based on.
   
    

Who Can File a Diminished Value Claim in Washington State?

This is a critical point. In almost all cases, you can only file a diminished value claim in Washington if the other driver was at fault for the accident.

• You file the claim against the at-fault driver’s property damage liability insurance.¹³
  
   
• You generally cannot file a diminished value claim against your own insurance company through your collision coverage. The logic is that your policy is a contract to repair your car, not to guarantee its resale value.

Therefore, to be successful, you must have been the not-at-fault party in the collision.

How to Prove Your Diminished Value Claim: A Step-by-Step Guide

Insurance companies won’t just take your word for it. The burden of proof is on you to demonstrate the loss in value.

Step 1: Determine if Your Car Qualifies

Generally, the best candidates for a successful claim are newer vehicles (typically less than 5 years old) with no prior accident history and significant, but not total-loss, damage. An older car with high mileage and previous damage will have a much weaker claim.

Step 2: Get a Professional Appraisal

This is the most crucial step. You will need to hire an independent, certified appraiser who specializes in diminished value claims. They will conduct a thorough inspection of the repairs, analyze market data for your specific vehicle, and produce a detailed report that calculates the precise amount of the diminished value. This expert report is the foundation of your claim.

Step 3: Send a Demand Letter

Once you have the appraisal report, you will send a formal demand letter to the at-fault driver’s insurance adjuster. The letter should clearly state the amount you are claiming for diminished value and include a copy of your expert’s report as evidence.

Step 4: Negotiate

Be prepared for the insurance adjuster to push back. They may offer a much lower amount or deny the claim outright. They may present their own, less favorable valuation. This is where the strength of your expert report and your persistence (or your attorney’s) becomes critical.

Diminished value claims can be challenging to win on your own, as they require specific expertise and a willingness to fight for what you are owed. If you believe your vehicle has lost significant value after an accident in the Tacoma area that wasn’t your fault, getting legal advice is a smart move. Search the Car Accident Lawyer Directory Tacoma to find and compare trusted local attorneys who can help you navigate the appraisal and negotiation process to recover the full value of your property damage claim.

References

• Washington State Pattern Jury Instructions (WPI 30.10.01) – Measure of Damages—Damage to Personal Property—Repaired:The official instruction for juries, which states that if personal property (like a car) is repaired, the owner is entitled to the reasonable cost of repairs plus the loss of value (diminished value).https://www.courts.wa.gov/superiori/pattern_jury_instructions/WPI%2030.10.01%20Measure%20of%20Damages%20-%20Damage%20to%20Personal%20Property%20-%20Repaired.pdf
• Washington State Office of the Insurance Commissioner (OIC) – Filing a claim:Official guidance for consumers on their rights and responsibilities when filing a property damage claim. While it may not detail diminished value specifically, it outlines the claims process.https://www.insurance.wa.gov/what-do-if-you-have-accident-and-need-file-claim