WHAT IS DIMINISHED VALUE? After an accident, even if your vehicle has been repaired properly, your vehicle is not worth as much as it was prior to the loss. In the State of Texas the law may require that you disclose that the vehicle has been in an accident when you sell the vehicle. The fact that it has been involved in an accident and repaired causes your vehicle to have Diminished Value. This is where Diminished Value of Texas comes in.

There are three types of Diminished Value

1. Repair Related Diminished Value

Repair related Diminished Value is caused when the repair shop that made the repairs to your vehicle does not complete those repairs perfectly. If after the repairs are completed it is obvious that the car has been repaired (i.e.. tapelines, color match problems, poor alignment of sheet metal, frame or unibody alignment problems) then your vehicle has repair related Diminished Value. The amount of repair related Diminished Value is determined by the overall quality of the repairs. If the repairs are of very poor quality and the repair related Diminished Value is substantial you may chose to consider legal action against the repair shop remedies against the repair shop.

2. Inherent Diminished Value

Inherent Diminished Value is the actual retail cash value that your vehicle has lost due to the damages that occurred in the loss. This is the amount that your vehicle was worth just prior to the loss less the value just after the repairs are completed. Most vehicles that have sustained damages due to a collision will have Inherent Diminished Value.


3. Claim related Diminished Value

Claim related Diminished Value is caused from repair operation omissions or when the insurance company does not allow the shop what is necessary to repair the vehicle properly.

Fill out our online eligibility form to find out if you are eligible.