Diminished Value
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 Misconceptions
Expecting collision coverage to pay DV on your own policy in most states. Proving DV requires appraisals and market data.
Related Terms
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Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
