What is Diminished Value?
The reduction in a vehicle's market value after it has been damaged in an accident and repaired, compared to a similar vehicle that was never damaged.
Understanding Diminished Value
Even after quality repairs, a vehicle with accident history typically sells for less than an identical vehicle with no accidents. Some states allow recovery of diminished value from at-fault drivers' insurance, while others do not.
Examples
- 1Repaired car selling for $3,000 less due to accident history
- 2Claim for inherent diminished value after collision
- 3Expert appraisal documenting post-repair value reduction
Related Terms
Loss of Consortium
A claim by the spouse or family member of an injured person for the loss of companionship, affection, comfort, and sexual relations resulting from the injury.
Punitive Damages
Additional damages awarded beyond compensatory damages to punish the defendant for particularly egregious conduct and deter similar behavior in the future.
Pain and Suffering
A category of non-economic damages compensating injury victims for physical pain, emotional distress, and diminished quality of life caused by their injuries.
Future Medical Expenses
The projected cost of medical treatment, therapy, medication, and care that an injured person will need in the future as a result of their injuries.
Lost Wages
Income that an injured person loses because they are unable to work due to their injuries, including salary, hourly wages, bonuses, and other employment benefits.
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