Note: In the state of Florida Diminished Value can only be collected if you are NOT the at fault party.

Diminished value is the loss in a damaged vehicle's market value after repairs have been completed. Whether you own or lease, you could loose hundreds or even thousands of dollars at time of sale or trade in through diminished value. It may be the best kept secret many insurance companies don't want you to know about.

Suppose your car was damaged in an accident. It was repaired and the repairs were absolutely perfect. This car has still lost value since it is now perceived by any potential buyer as "damaged goods." This type of loss is known as "Inherent Diminished Value" and it applies regardless of the quality of the repair that was done. There are two other types of diminished value as well.

"Insurance Related Diminished Value" applies when an insurance company did not allow for the needed repair procedures in the claim or when they required substandard parts to be used in the repair. As an example, a car was damaged on the right front fender and the inner panels also suffered minor damage; the insurance company specified replacing with an imitation (after market) fender and did not allow for any repair to the inner panels even though they are visible when the hood is open. The imitation (after market) fender and the uncompleted repairs would both diminish the value of said vehicle.

"Repair Related Diminished Value" applies when a shop was paid to perform needed repairs but did not do them correctly. For example, if a repair shop was paid to repair and refinish (paint) a door but the paint is mismatched or had visible sandpaper scratches, this car now has repair related diminished value.

If your vehicle has been involved in an accident, you have lost money! This loss is owed to you for up to five years after the accident, either by the insurance company or the at fault party. And this loss is owed to you even if the repairs were done correctly.

Florida law is clear in the event of a covered loss, any economic loss is recoverable. To be fully indemnified (made whole), one is entitled to recover any loss in monetary difference between the value before loss and the value after repairs.