Diminished value claims in California allow drivers who were not at fault in a car accident to recover the loss in their vehicle’s market value after repairs are made. This loss occurs because even well-repaired cars typically suffer a drop in resale or trade-in value due to accident history, impacting owners financially beyond repair costs.
Understanding how diminished value claims work in California can help you maximize your recovery.
What Is a Diminished Value Claim in California?
A diminished value claim seeks compensation for the difference between your car’s value immediately before the accident and its value after repairs. For example, if your car was worth $60,000 before the crash but is worth only $51,000 afterward, you may be able to claim the $9,000 loss from the at-fault driver’s insurer.
Who Can File a Diminished Value Claim in California?
In California, only certain vehicle owners qualify to file a diminished value claim:
- You must not be at fault for the accident: Only the non-negligent party can pursue compensation from the at-fault driver’s insurer.
- You must own the vehicle: If the car is leased, the leasing company—not you—holds the right to file the claim.
- Your vehicle should have a clear title: Salvage or rebuilt titles generally make diminished value claims invalid.
- The claim is filed against the other driver’s insurance: Most California insurers don’t cover diminished value under your own policy unless it’s specifically included.
If your vehicle lost value after an accident you didn’t cause, you may be eligible to file a diminished value claim.
Types of Diminished Value Claims in a California Car Accident Case
The type of claim you file for diminished value after a car accident depends on the factors involved in the case. The most common diminished value claims are:
- Immediate diminished value: The reduction in the vehicle’s fair market value following the accident before any repairs are made. This claim is based on the value of the vehicle and the decrease in value caused by the damage.
- Inherent diminished value: The reduction in the vehicle’s fair market value after the repairs are made. This claim is based on the decrease in value because of the vehicle’s accident history when it is sold or traded for another vehicle.
- Repair-related diminished value: The reduction in the vehicle’s fair market value because the quality of repairs is substandard. For example, the repair facility may use non-original or used parts. The paint used may be of a lower quality than the vehicle’s original paint.
As with a personal injury claim after a car accident, the claimant has the burden of proving the legal elements of a diminished value claim. That includes proving the value of the vehicle before and after the accident.
How To Prove and File Your Diminished Value Claim After a Car Accident in California
Because diminished value is a non-obvious loss, insurance companies often demand thorough evidence before paying. Evidence used to prove a diminished value claim includes:
- Obtain an independent appraisal of your vehicle’s post-repair value.
- Collect market evidence of the vehicle’s value, such as trade-in offers or sales prices of comparable vehicles without accident history.
- Provide repair records showing the extent of the damage and the quality of repairs.
- Use a professional written evaluation from a dealership or appraiser.
- Gather pictures of your vehicle before the accident, after the crash but before repairs, and after the repairs were completed.
The insurance company will likely conduct its own evaluation to determine diminished value. Several factors influence the amount of a diminished value claim, including the vehicle’s age, the severity of the damage, the vehicle’s condition before the accident, market demand, and the quality of the repairs. If the insurance company’s evaluation is much lower than your evaluation, contact a car accident lawyer to discuss pursuing a legal action to resolve the claim.
Recoverable Losses After a Car Accident in California
Apart from diminished value, you may be entitled to additional compensation after a car accident caused by another driver’s negligence. You may receive compensation for economic and non-economic damages, including:
- Medical expenses
- Lost wages
- Pain and suffering
- Out-of-pocket expenses
- Diminished quality of life
- Reduced earning capacity
- Impairments, disfigurement, and disability
- Loss of enjoyment of life
- Emotional distress and mental anguish
Every case is unique, and the total compensation depends on the severity of your injuries and their impact on your life. An experienced California car accident attorney can help you evaluate your damages, negotiate with insurers, and pursue the full amount you deserve.
A Personal Injury Lawyer Can Help
For personalized legal assistance with diminished value claims and recovery of full losses or to learn more about personal injury claims, please contact our experienced California personal injury attorneys at Mercado Kramer, LLP, for a free consultation. We have offices in Salinas and San Jose, CA, and we serve throughout Monterey County.
Mercado Kramer, LLP.
450 Lincoln Ave Ste. 102, Salinas, CA 93901
(888) 311 4050
