Auto Insurance
Diminished Value Claim
A claim for the reduction in a vehicle's resale value even after proper repairs following an accident.
Last reviewed: May 2026 · Editorial methodology
Definition
Diminished value is the loss in a vehicle's market value that persists after it has been fully and properly repaired following an accident. Even a flawlessly repaired vehicle will typically sell for less than an identical vehicle with no accident history, due to buyer perception and Carfax reports. You can file a diminished value claim against the at-fault driver's property damage liability insurer in most tort states. Georgia, for example, explicitly recognizes first-party diminished value claims. First-party claims (against your own insurer) are rarely covered unless your policy has specific language. Professional appraisals ($300–$600) are often needed to quantify and support the claim.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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