The Shoulder
The Shoulder
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Property damagespry-seal-184

Diminished value claim — can someone explain this like I'm five? 😅

So I got rear-ended about six weeks ago at a red light. Complete stop, not my fault, other driver admitted it on scene and their insurance accepted liability pretty quickly. My SUV spent almost three weeks at the body shop — frame work, new bumper assembly, bunch of other stuff. Total repair bill was significant.

Here's the thing: I've been planning to sell my vehicle privately in the next year or so. I bought it specifically because it had a clean history and I knew I'd get good resale value. Now it's got a collision on the Carfax forever and I feel like I've just lost money I didn't even spend yet, if that makes sense?

A coworker mentioned something called a diminished value claim yesterday and I went down a rabbit hole for about 20 minutes before my brain melted and I closed all my tabs lol.

From what little I gathered:

  • It's a separate claim from the repair/property damage stuff?
  • You're basically saying the car is worth less NOW even though it's fixed?
  • The at-fault insurance owes you the difference?

But I have no idea how you actually start one. Do I just call the adjuster and say "hey I want to file a diminished value claim"? Do I need some kind of appraisal first? Will they laugh at me?

I'm not trying to squeeze anyone, I just feel like I'm eating a real financial loss here that wasn't my fault and I don't want to miss a deadline or something. Any help is massively appreciated. Totally lost on this one. 😬

12replies

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12 replies

  • 24
    patient-bison-102

    I went through almost this exact situation about a year ago — clean title car, not my fault, frame damage, whole thing. Yes, DV claims are absolutely real and you have every right to pursue one. I called the at-fault insurer's adjuster directly and just said those words: 'I want to file a diminished value claim.' They acted surprised, like I wasn't supposed to know that was a thing, but they opened it. The tricky part is they'll come back with a lowball number using some formula that basically spits out almost nothing. That's when having an independent appraisal in your back pocket really matters. Get one before you accept anything they offer.

    • 14
      steady-crane-297

      Spent years on the inside handling exactly these claims. Here's the honest truth: DV claims are totally legitimate but adjusters are not trained to volunteer information about them. You have to ask. Once you ask, they open a file. Then they'll run their internal calculation, which almost always favors the company. Your strongest move is to get your own appraisal — there are companies that specialize specifically in diminished value appraisals, not just general auto appraisers — and submit that as a counter. The gap between what they offer and what an independent appraiser finds can be pretty eye-opening.

  • 19
    bright-owl-628

    Please do NOT just accept whatever number their adjuster throws at you first. Insurance companies use an internal formula called the 17c method — look it up — and it's widely criticized for dramatically undervaluing DV claims. They're counting on you not knowing what your car's actual market loss is. Get an independent appraisal from a certified auto appraiser BEFORE you respond to any offer. Once you accept a settlement on the property damage side, depending on what you signed, it may or may not include DV — read everything carefully.

    • 5
      keen-marmot-897

      Ugh, this is so stressful and the fact that insurance companies don't just TELL you about this stuff is honestly kind of infuriating. You did everything right — stopped at the light, not at fault, cooperated — and now you're the one doing all this research just to get made whole. I hope you're able to get what you're owed. 💙

    • 8
      calm-driver176

      Really glad you posted an update — gives the rest of us some hope.

    • 4
      level-late-shift897

      Adding this: keep copies of every email. It mattered for me.

  • 12
    curious-finch-116

    A couple of practical things to know: DV claims have deadlines that vary depending on your state — some states give you 2 years, some 4, it depends. So don't sit on this forever even though it feels overwhelming right now. Also, check whether you signed a full release when they settled the repair portion. Some releases are broad and some are narrowly worded. If you haven't cashed or signed anything final yet, you're in a better spot. Not legal advice, just process stuff I've picked up.

    • 1
      kind-rider105

      That lines up with what my adjuster told me too.

  • 9
    wise-badger-751

    Not legal advice, but DV claims are genuinely recoverable in most states when the other party is at fault — you're right that you're absorbing a real financial loss that shows up the moment that accident hits your vehicle history. The challenge is proving the amount. An independent appraisal helps enormously, but honestly if the at-fault insurer stonewalls or lowballs badly, a PI attorney can often recover the full DV loss plus costs through negotiation or demand letters. Many handle it as part of a broader injury/damage claim at no extra upfront cost. Worth at least a consultation to understand your options.

    • 11
      curious-vole-232

      Quick question before you go too far down this road — what year is the vehicle and roughly how many miles? DV claims are typically stronger on newer vehicles with lower mileage. An older high-mileage car may have a much smaller recoverable DV amount because the market value was already lower to begin with. Not saying don't pursue it, just worth knowing what ballpark you're realistically in before investing a lot of energy.

    • 3
      patient-survivor783

      This is exactly what I needed to read today. Thank you.

  • 12
    hearty-beaver-594

    Step one: don't sign or cash ANYTHING from their insurance related to property damage until you know whether it releases DV too. Step two: call an independent DV appraiser, get a written report with a dollar figure. Step three: call the adjuster, say you're filing a DV claim, submit the appraisal. Step four: negotiate. It's not as scary as it sounds once you have a number in your hand. You're not being greedy — your car literally lost market value through no fault of yours.