The Hidden Cost of Accidents: Understanding Diminished Value Claims in California!

 Simran was on her way home, driving her newly repaired car! She was thanking her stars that the nightmare of the accident had ended. She managed without her car, managing every day, travelling via public transport and car pooling with a friend. Finally, she took a sigh of relief. 


After a few days, she decided to resell her car because she needed some quick cash. To her surprise, her nightmare wasn’t finished yet! In fact, it bounced back with full force. The value of the car has dropped significantly despite getting expert repair. All this is happening because it was involved in a vehicle. She has just learnt a new term called California diminished value.


Simran isn’t the only car owner in California who ain’t aware of diminished value. As a matter of fact, most vehicle owners don’t know about it. This blog is dedicated to providing all the information you need about the drop in the value of your car and Diminished value claims in California. Continue reading to gain some useful knowledge.


What is Diminished Value? 

California diminished value is the drop in the worth of a vehicle because it has been a part of an accident. Despite being repaired, a car with an accident history often loses value. Potential buyers and dealers usually offer less than they would for a vehicle with a clean record.


Just imagine—would you really be able to trust a car that’s been in an accident? Let’s be honest, we all know that no one fully trusts repairs, no matter how well they are done.


On the other hand, understand the plight of the car owner. Being innocent in the accident, they are facing a lot! Firstly, they have to deal with the unexpected collision. Secondly, they manage without their vehicle meanwhile it's getting repaired (however repair is undertaken by their insurance company). Thirdly, they don’t get a fair price for their vehicle due to the accident history. 


Primary Types of Diminished Value 

  • Inherent diminished value- this is the most common type of California diminished value. Here, a car loses value just because it has an accident tag.   


  • Immediate diminished value- as the name says, the moment your car gets hit, its value drops. This is without any repairs, an on-the-spot reduction in the worth of the car.  


  • Repair related diminished value- not every car gets repaired to perfection. In some cases, the damage is so deep that it can’t be fixed completely with just a repair. Whereas in some cases, the repair work is not up to the mark. The Body Shop uses after-market products, mismatched paint, or shortcuts that compromise the vehicle’s original quality. 


Diminished value claims in California at your rescue! 

Don’t feel alone if you are stuck in the vicious circle of an accident followed by a drop in the car’s value. Diminished value claims in California provide you with an opportunity to gain back your loss. But to qualify for the claim, you need to qualify for the following criteria:


  • The damage wasn’t your fault. 

  • You can only file for diminished value claims in California to the at-fault driver’s insurance company. 

  • Your car should have received enough damage, and it must have been repaired 

  • You must file the claim within three years from the date of the accident.


Do not suffer because of an accident that happened due to someone else’s negligence! Stand for your rights! Receive what you deserve with diminished value claims in California! 


Reference: Understanding Diminished Value Claims in California: What You Need to Know!



Location: United States

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