Car Diminished Value Calculator
Estimate how much your vehicle’s value has dropped after an accident—even if fully repaired.
What Is Diminished Value and Why It Matters
When a car is involved in an accident—even if it’s repaired to like-new condition—its resale value usually drops. This loss in market value is called diminished value. Insurance may cover repairs, but often won’t automatically compensate for the post-repair value loss unless you file a claim for it.
Types of Diminished Value
- Immediate Diminished Value: Value loss immediately after the accident, before repairs are made.
- Inherent Diminished Value: Loss in resale value due to accident history, even after proper repairs (most common).
- Repair-Related Diminished Value: Loss due to poor repairs, visible defects, or use of non-OEM parts.
How Diminished Value Is Calculated
Most estimates use a formula based on:
- Pre-accident market value
- Damage severity
- Repair cost relative to value
- Vehicle age, mileage, and prior damage
Sample Formula (Based on Georgia’s 17c Rule)
- Start with 10% of the pre-accident value as base diminished value.
- Apply a damage severity multiplier:
- Minor = 0.25
- Moderate = 0.50
- Severe = 0.75
- Adjust based on mileage and age if necessary.
Typical Diminished Value Estimates
| Vehicle Value | Damage Severity | Estimated DV |
|---|---|---|
| $20,000 | Minor | $500 – $1,000 |
| $30,000 | Moderate | $1,500 – $2,000 |
| $40,000 | Severe | $2,500 – $4,000 |
Does Insurance Pay for Diminished Value?
Only some insurers automatically offer DV compensation—and usually only if the other driver was at fault. You’ll need to file a third-party claim, and in some states like Georgia, it’s easier to collect due to specific case law.
| State | Recognizes DV? | Claim Type |
|---|---|---|
| Georgia | Yes (17c Rule) | Third-party only |
| California | Yes | Third-party |
| Texas | Yes | Third-party |
| Michigan | No | N/A |
| New York | No | N/A |
Tips for Maximizing Your Diminished Value Claim
- Get a professional DV appraisal
- Request a CARFAX history to confirm the damage is reported
- Gather photos and repair bills
- File your claim quickly
- Work with an attorney if your insurer resists paying
Frequently Asked Questions
- Can leased vehicles claim diminished value? Typically not—the leasing company owns the asset.
- How long do I have to file a claim? This varies by state—generally 2–4 years from the date of the accident.
- Is diminished value taxable income? No. It is not considered taxable compensation.
- What if I was at fault? You likely can’t claim DV unless your own policy allows first-party coverage.