Diminished Value
Also known as: DV, diminution of value
Diminished Value is the loss of resale value a vehicle suffers after being damaged and repaired, even when the repair restores it to pre-accident condition. Diminished-value claims apply to repairable vehicles — not total losses — but are commonly confused with total-loss valuations.
More detail
- Inherent diminished value is the most common type: a buyer will pay less for a vehicle with an accident on its history report regardless of repair quality.
- Some states (notably Georgia) have favorable diminished-value case law; others severely limit recovery.
- If your vehicle was repaired but you suspect it was 'borderline' total loss, a separate diminished-value claim may apply.
Related terms
Actual Cash Value (ACV)
Actual Cash Value is the dollar amount your insurance company is required to pay you for a totaled vehicle. ACV represents the price you would pay to buy a comparable used vehicle of the same make, model, year, mileage, and condition in your local market — not the vehicle's original price, replacement cost, or what you still owe on a loan.
Total Loss Threshold
The Total Loss Threshold is the percentage of a vehicle's pre-loss value at which an insurer must declare it a total loss. Thresholds are set by state law (statutory) or insurance company policy (contractual) and typically range from 65% to 100%.
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