How to Estimate Diminished Value

Diminished value is equal to the lost value of a damaged automobile.

Diminished value is the amount of loss suffered when your vehicle is damaged or destroyed in an accident. This is the dollar amount for which the insurance company of the at-fault vehicle driver is liable. In some instances it may be the cost of the repairs it would take to put your vehicle back in the condition it was in before it was hit. Some websites offer a diminished value calculator (see Resources), or you can determine the loss in value on your own.

Instructions

1. Find the Kelley Blue Book value for your vehicle online (see Resources) or consult a copy of the Blue Book at your public library.

2. Get at least three estimates of the cost to repair your vehicle. If the vehicle can't be repaired and is considered a total loss, then the Blue Book value is the diminished value.

3. Get the repair cost estimate from the at-fault driver's insurance company. The amount it offers to pay should be equal to or more than the repair cost or diminished value. If it is not, demand more.

References

• Car Insurance: Loss of Value Questions and Answers

Resources

• Read this Article in Spanish
• Diminished Value: It Doesn't Pay to Do It Yourself
• Advocate Auto Consultant: Diminished Value Calculator
• Kelley Blue Book