Info Center

What Is Diminished Value?

Navigating post-accident insurance matters can be complex and frustrating. It’s important to have a good understanding of your situation when dealing with insurance companies, especially if state laws have recently changed in a way that impacts how you file a car accident claim.

Such is the case with diminished value claims, which were confirmed by a Massachusetts Supreme Judicial Court ruling in October 2021. Attorney Kevin J. McCullough represented Mr. McGilloway in McGilloway vs. Safety Insurance Company. The plaintiff sought damages for diminished value and the court’s ruling on the case established new precedent that insurance companies in Massachusetts must pay damages for diminished value for eligible claims.

Below, we discuss the basics of diminished value claims and offer additional resources for more in-depth reading.

Diminished Value Claims

A diminished value claim is designed to reimburse you for the loss in value your vehicle has suffered as a direct result of the accident. There are a few different methods you can use to calculate the diminished value of your vehicle. The most common way is to use the 17c formula.

To use this formula, first you need to know the current value of your car. Then, take 10% of this value and add damage and mileage multipliers to determine the estimated payment that an insurer would make for a diminished value claim. These multipliers range from 0.00 to 1.00 and vary depending on how many miles are on your vehicle and the extent of the damage caused by the accident.

The Definition of Diminished Value

Motor vehicles depreciate in value significantly after being involved in an accident. Even if a vehicle has been completely restored to “factory condition,” it can never be sold for the same amount as it could had it not been in a collision. The difference between how much the car would have sold for and how much it will sell for after all repairs are completed is called diminished value.

Frequently Asked Questions About Diminished Value

A diminished value car accident lawyer can help you understand Massachusetts’ laws as they pertain to diminished value and how they can affect your claim. They can communicate and negotiate with insurance companies on your behalf and will help you secure as much evidence as possible to get your claim approved.

In the event your claim is denied, your attorney can help you litigate.

What kind of evidence do I need for a diminished value claim? To file a diminished value claim, you will need to provide evidence of the diminished value to your insurance company. There are a few different ways to do this. One way is to get an estimate from a body shop of what it would cost to repair your vehicle to its pre-accident condition.

You can also obtain a diminished value report from a company that specializes in this type of estimate. This report will take into account the make, model, and year of your vehicle as well as the severity of the accident to arrive at a diminished value estimate. By having this information, you will be able to file a successful claim and receive the compensation you deserve.

Insurance companies aren’t always quick to pay claims. One thing insurance companies may try to do is deny your claim outright. If you have ample evidence to support your claim, such as multiple estimates or a report from a certified mechanic, you’ll have a much better chance of getting them to reconsider.

Another thing they may do is low-ball you on the amount they’re willing to pay. In this case, it’s often helpful to hire a professional to appraise the damage and give you a more accurate estimate of the repairs.

Finally, it’s important to understand your state’s laws pertaining to diminished value claims. If you know what your rights are, you’ll be in a much better position to negotiate with the insurance company.

By gathering evidence, hiring a professional, and understanding your state’s laws pertaining to diminished value claims, you should be able to get the money you’re owed from your insurance company.

If you are filing a diminished value claim, you should file it as soon as possible. If you don’t file your claim within the right time frame, then you may lose your right to compensation.

It is important to note that if an auto insurance company rejects your claim or denies coverage, there is no statute of limitations on how long they have to pay out on the claim. What this means is that even if they reject or deny your claims today, they can still be required by law to pay out on those claims later down the road (depending on different state laws).

  • Take pictures of the damage.
  • Get a copy of your vehicle’s pre-accident condition. You may be able to find this on your insurance claim, or from the police report filed after the accident.
  • Take photographs of all visible signs of damage to your car and any other parties involved in the accident (e.g., other cars, trees).
  • Get an estimate for repairs as soon as possible after an accident occurs to determine how much money will be needed for repairs before submitting a diminished value claim. You should also get quotes from repair shops that specialize in fixing custom cars like yours so you can compare prices and quality between them before choosing one shop over another; this comparison will help ensure that you don’t overpay when making repairs after an accident occurs on your custom car’s bodywork or paint job.

Before you file a diminished value claim, it’s a good idea to understand what it is. Inherent diminished value refers to the difference between your car’s pre-accident market value and its post-accident market value.

For example, let’s say that before you were in an accident your vehicle had an actual cash value (ACV) of $20,000 and had 30 miles on it. After the accident, your car now has 60 miles on it and has been depreciated by $5,000 due to its age and mileage. It would have an ACV of $15,000 because of this depreciation—still worth more than when you bought it but not as much as before your accident.

Often, people are unaware that they may be entitled to a diminished value claim, and insurance companies typically refuse all such claims. We are here to make sure that drivers are aware of their rights to reclaim the lost value on the resale of their cars.

As a vehicle owner, you may be able to collect diminished value if your car is damaged in an accident. Diminished value is the loss of resale value experienced by a vehicle because of damage sustained during an accident or other incident. In simple terms, if you have purchased or financed your car and it was damaged in an accident, you could file a claim for diminished value.

If you are unsure whether or not you can get compensation for your diminished value claim, contact our team at

Enter information about your car’s make and model, and we will determine the factors including how much value your car has lost in an accident.

It’s easy: simply enter a few pieces of information about your car accident (the date, location, etc.), which we will use to find out how much less your car is worth. Then we’ll process all of this information for you so that we can get paid for helping you with your diminished value claim.

Our services are free, you don’t have to pay anything! We do all of the work, and you get paid!

Contact Us Today For Help With a Diminished Value Car Accident Claim

We understand that navigating car accident claims is difficult and our team is available now to help. Contact our office today for a consultation to discuss your eligibility to file a diminished value claim by calling (978) 744-8000.

MM slash DD slash YYYY

©2023 Damaged Car Attorneys. All rights reserved. Website Design by Compete Now.