Justice Demands Diligence

What is diminished value?

On Behalf of | Aug 16, 2023 | Motor Vehicle Collisions

In this blog, we frequently talk about the damages in motor vehicle accident cases in terms of medical expenses, lost wages and pain and suffering. These are indeed some of the costliest items in any list of damages after a serious car accident, but they aren’t the only costs involved.

Another major item in a list of damages may be the cost of repairing or replacing one’s car. This is usually described as “diminished value.”

Diminished value?

The term “diminished value” refers to the difference between the market value of your vehicle before the car crash and after the car crash. You might think the value is the same because the car has been repaired, but the fact of the matter is, your car will never be the same. You can never un-crash a vehicle, and future buyers will pay less for a car that has experienced one.

Of course, if the accident left the car as a total loss, then the diminished value comprises the entire worth of the car before the accident.

Inherent diminished value

There are generally three types of diminished value. The first is inherent diminished value, which refers to the loss of value related to the fact that the car has simply been in an accident. It does not matter the type or quality of the repairs. This is the type of diminished value that is most commonly thought of as diminished value.

Repair-related diminished value

Another type is repair-related diminished value. This is the loss of value that occurs because of the vehicle repair itself. Usually, it is because of poor-quality repairs that are noticeable, like mismatched paint, misaligned parts, etc.

Immediate diminished value

Finally, there is immediate diminished value. This is the difference between the market value before the crash and the immediate value of the vehicle after the crash, before the vehicle is repaired.

Is diminished value allowed in Florida?

Yes, but it depends on your coverage and claim. And, if you are suing a negligent driver, you absolutely can include in your damages a claim for diminished value.