Diminished Value — Insurance Claims Definition
Auto
The reduction in market value of a repaired vehicle because it now has a significant damage history.
Diminished value claims seek compensation for lower resale value after quality repairs. Third party DV claims against at-fault insurers are recognized in some states; first party DV is often excluded or limited.
Examples
A luxury car with $25,000 in structural repairs sells for $8,000 less than an identical clean-title car; DV claim seeks that gap from liability carrier.
Common Mistakes
Expecting collision coverage to pay DV on your own policy in most states. Proving DV requires appraisals and market data.
