When your vehicle is damaged in a car accident—even after repairs—it is rarely worth what it was before the crash. This loss in market value is known as diminished value, and it can significantly reduce what you can sell or trade your vehicle for in the future. Many drivers don’t realize they may be entitled to compensation for this loss.
At Mansfield Melancon Injury Lawyers, we help clients pursue diminished value claims to ensure they’re not left with a car that’s worth less through no fault of their own.
What Is Diminished Value?
Diminished value refers to the reduction in a vehicle’s market value after it has been in an accident. Even when repairs are performed perfectly, a vehicle with an accident history is nearly always worth less than the same car with a clean record.
Three types of diminished value:
- Immediate Diminished Value
- Inherent Diminished Value
- Repair-Related Diminished Value
Why Vehicles Lose Value After an Accident
Factors include:
- Carfax accident reports
- Structural or frame repair
- Buyer hesitation
- Reduced resale desirability
How Diminished Value Is Calculated
- The 17c Formula
- Independent Appraisal Method
- Market-Based Approach
When Can You File a Diminished Value Claim?
You may qualify if:
- You were not at fault
- Your vehicle is newer, high-value, or low-mileage
- Damage was significant
- Your repairs are documented
- The accident appears on vehicle history reports
How Much Is a Diminished Value Claim Worth?
Factors impacting value:
- Vehicle age and mileage
- Luxury vs. standard models
- Structural damage
- Market demand
When Should You Hire a Lawyer?
Hire a lawyer if:
- The insurer denies or undervalues your claim
- Your vehicle has structural damage
- You were injured in the accident
- You need an expert appraisal
- Your state has complex DV laws
Frequently Asked Questions
Does every accident cause diminished value?
Yes.
Can I claim diminished value if I was at fault?
Generally, no.
Do I need an appraisal?
Highly recommended.
How long do I have to file?
Usually 1–3 years, depending on the state.
Will a DV claim affect my insurance rates?
Not if you were not at fault.
Contact Mansfield Melancon Car Accident and Personal Injury Lawyers for a Free Consultation
If your vehicle lost value after an accident, you deserve compensation. Mansfield Melancon Injury Lawyers can help you:
- Evaluate your claim
- Obtain an accurate valuation
- Challenge low insurer offers
- Pursue legal action if needed
Call us today or visit our website for a free consultation.
We proudly serve East Baton Rouge Parish, Lafayette Parish, Orleans Parish, and their surrounding areas:
Mansfield Melancon Car Accident and Personal Injury Lawyers – Baton Rouge Office
404 Europe Street
Baton Rouge, Louisiana, 70124
(225) 263-4787
Mansfield Melancon Car Accident and Personal Injury Lawyers – New Orleans Office
365 Canal Street Suite 415
New Orleans, Louisiana, 70130
(504) 294-3804
Mansfield Melancon Car Accident and Personal Injury Lawyers – Lafayette Office
1318 Camellia Boulevard Suite 206
Lafayette, Louisiana, 70508
(337) 473-2991
Mansfield Melancon Car Accident and Personal Injury Lawyers – Metairie Office
111 Veterans Memorial Blvd, Suite 255
Metairie, Louisiana, 70005
(888) 601-0127