"Diminished value" occurs when a vehicle has been subject to what is known as accelerated depreciation, which is what happens when it has suffered damages from an accident. It stands to reason that such a vehicle will never be able to fetch the same price as can be obtained from a vehicle that has not gone through any accident, even after repairs. This forces the owner to pursue reimbursement for the diminished value from his personal insurance company. The owner has a right to add this to the repair claims due to the accident.

After a car accident, an owner can file a claim for diminished value from an insurance company after getting such a diminished value report from third-party appraisers. The appraiser will give the diminished value relative to the state – diminished value Texas or diminished value Florida or any other state – only after doing an appraisal which will estimate the value that the vehicle has lost because of being involved in an accident. Such appraisals are typically made only after the vehicle has undergone the necessary repairs. To fully understand the post-accident value of the car, truck or van the report will review the repairs to deem the caliber of the repair or repairs.

Diminished value of vehicles cannot follow any set formula and appraisals have to be conducted on a case by case basis. The location of the vehicle can impact this as well as the type of repairs that were made following the damage from the accident. Diminished values can be impacted by both ownership history and mileage.

The final acceptance of a diminished value claim depends on the owner and his ability to convince the insurance company with whom the claim has been filed. Diminished value claims can also be filed against the company of the other party that was involved in the accident. All this requires very careful documentation so that all figures presented for the claim can easily be verified.

Specific policies offer claims for diminished value though higher premiums may also come with these policies. If you are willing and able to prove negligence of the other driver that directly points to fault for the accident as well as the diminished value of your car, truck or van you may file the claim directly against the insurance policy of that driver.

If you have had an accident and haven't sold your car or truck yet, you should look through your policy to see if you have coverage for diminished value and, if so, you should look further into the possibility of filing a claim. If you don't have diminished value coverage you should ask your agent how much more it would cost to get coverage for any possible future occurrences.