Here’s How Diminished Value Works

Colin
By Colin Wood
Jun 22, 2020 | Classic Motorsports, Diminished Value

Nobody wants to have to file a diminished value claim on their pride and joy, but maybe that's why this bit of insurance is so important to understand. (After all, nobody expects the Spanish Inquisition.)

Simply put, diminished value is the difference between what your car would have sold for before an incident and what it will sell for after being repaired, even if it’s expertly fixed by an authorized shop using factory replacement parts.

Beyond that, making a claim can be a long, difficult process, whether you work with an attorney or try filing on your own.

Hopefully, you'll never have to file a claim, but, just in case, we discuss everything you need to know about diminished value over on Classic Motorsports.

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Comments
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slefain
slefain PowerDork
6/23/20 9:50 a.m.

Good article. I'm going through this with a non-classic vehicle right now and it is a royal PITA. I've been documenting it here: https://grassrootsmotorsports.com/forum/off-topic-discussion/has-anyone-ever-actually-been-paid-a-realistic-amount-for-vehicle-diminished-value-after-a-wreck/171748/page1/

I contacted a lawyer a few days ago, so it will get interesting. Pretty much it boils down to the insurance company employing "delay, deny, defend" tactics to rat berkeley anyone who tries to make a DV claim.

Rodan
Rodan Dork
6/23/20 10:05 a.m.
slefain said:

 Pretty much it boils down to the insurance company employing "delay, deny, defend" tactics to rat berkeley anyone who tries to make a DV claim.

This has been my experience.  Nothing you provide them as far as valuation is 'valid'... only their arcane and top secret valuation formula is accurate.  Big shock that it comes up with insulting lowball numbers.  I'm at the point of calling an attorney, but with the numbers being just over Small Claims limits, it's probably not worth it.

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