Diminished value (DV) refers to the reduction in your vehicle’s market value after it has been involved in an accident, even if it has been properly repaired. Buyers tend to prefer vehicles with a clean history, which means a car with an accident record will often sell for less. This difference in value is what’s known as diminished value.

A diminished value claim is a request for compensation for the loss in your vehicle’s resale value after an accident. In most cases, this type of claim is filed with the at-fault driver’s insurance company. To support your claim, you typically need documentation showing the difference between your vehicle’s pre-accident and post-repair value.

A total loss occurs when your vehicle is deemed too expensive to repair relative to its value, or when the damage is severe enough that repair is not practical. In these situations, the insurance company will declare the vehicle a total loss and offer a settlement based on its pre-accident market value.

A total loss appraisal is an independent evaluation of your vehicle’s fair market value before the accident. This type of report helps verify whether the insurance company’s settlement offer accurately reflects your vehicle’s true value based on real market data and comparable vehicles.

Eligibility for a diminished value claim depends on several factors, including the age and condition of your vehicle, mileage, prior accident history, and whether another driver was at fault. Generally, newer vehicles with lower mileage and no prior damage are more likely to qualify.

Diminished value is calculated by comparing your vehicle’s market value before the accident to its value after repairs. This process typically involves analyzing comparable vehicles (with and without accident history), adjusting for mileage, condition, and market trends.

To complete an appraisal, you’ll typically need basic vehicle details (make, model, VIN, mileage), accident information, and supporting documents such as repair estimates, invoices, or photos. Providing accurate and complete information helps ensure a reliable valuation.