Getting 'Diminished Value' Compensation After A Car Crash

SEATTLE - When you’re car’s been in a crash, you may be entitled to compensation for the lost value of your vehicle even after repairs.

It’s known as “Diminished Value,” the difference between what your car was worth before the crash, and the fair market value of the car after it’s been repaired.

Insurance companies typically don’t like to make diminished value payments and may discourage you from making such a claim, however the State Insurance Commissioner’s office considers the loss of value a part of the total loss for which you’re paying when you buy auto insurance.

It’s important to read your policy carefully so you understand what your particular policy covers. Also understand that diminished value will not apply to all crash cases.

Based on the experiences of other consumers, you may have to be persistent and go up several levels above the insurance agent or rep to find someone who knows about and acknowledges diminished value.

As for determining the diminished value, you need to choose a reputable body shop with experience in diminished valuations. A number of auto body shops across the country are using special trademarked computer programs called “Wreck Check,” which calculates the effects of damage and repair on the fair market value of a car.

The local shop in our Buyer Beware report is Stroud’s Auto Rebuild in Tacoma at 253-474-0709

Many insurance companies want you to sell your car in order to get diminished value, but the state says that is not true. For more information about diminished value claims you can call the Washington State Insurance Commission at 1-800-562-6900.