When your car has been repaired after an accident, it may look as good as new—but to the market, it’s not. This loss in resale or trade-in value, even after proper repairs, is called diminished value. If you’re a vehicle owner in Florida, understanding diminished value—and when you can file a claim—is essential to recovering what you’ve truly lost.

What Is Diminished Value?

Diminished value (DV) is the reduction in your vehicle’s market value after it has been damaged and repaired. Even high-quality repairs can’t erase the fact that the vehicle now has an accident history, and that history lowers its desirability and resale price.

Vehicle Condition	Market Value Before Accident	Market Value After Repair	Loss (Diminished Value)
Clean, never wrecked	$40,000	$32,500	$7,500

Types of Diminished Value

1. Immediate Diminished Value – Occurs right after the accident, before repairs are made.

2. Inherent Diminished Value – The most common type, reflecting the loss in value after proper repairs due to accident history.

3. Repair-Related Diminished Value – Caused by substandard repairs, aftermarket parts, or mismatched paint quality.

Most claims in Florida are for inherent diminished value, because even a flawless repair can’t erase a vehicle’s history report.

Who Can File a Claim in Florida?

In Florida—and most other states—only the claimant in a third-party claim can file for diminished value. That means the other driver was at fault, and you’re filing against their insurance company.

Eligibility Requirements:

• The accident must not be your fault.

• You must be the vehicle owner, not a lessee.

• The vehicle must not have any prior accidents or insurance claims on record.

• The vehicle should generally be under 10 years old, unless it’s a high-value or investment-grade classic.

• The vehicle must be repaired before proceeding with a diminished value appraisal.

Can You File a Diminished Value Claim With Your Own Insurance Company?

Not in Florida. If you’re filing through your own insurance, it’s considered a first-party claim, and insurance companies do not owe diminished value to their own insureds. Florida law limits diminished value recovery to third-party claims against the at-fault party’s insurance carrier.

How Vehicle Loss In Value Is Calculated

Professional appraisers determine diminished value by evaluating factors such as pre-loss value, post-repair condition, and damage severity.

Key factors include:

• Pre-loss market value based on comparable vehicles in your local market.

• Post-repair value considering accident stigma and market demand.

• Severity of damage—structural, frame, or airbag deployment increases DV.

• Vehicle type and brand perception—luxury and exotic vehicles suffer higher DV percentages.

Appraisers use resources such as Black Book, JD Power, and real market data to produce an accurate, USPAP-compliant valuation.

Why Diminished Value Matters

• It restores part of your true financial loss.

• It prevents you from being shortchanged when selling or trading your vehicle.

• It’s your legal right when another driver causes the accident.

• Insurers rarely offer DV compensation unless you demand it with a certified appraisal.

Why Choose Auto Praise for Appraisals

Auto Praise has helped Florida vehicle owners recover thousands of dollars by providing accurate, defensible, and certified reports.

Our qualifications include:

• IACP Certified Auto Appraisers

• Florida Licensed Insurance Adjusters

• I-Car Platinum Certified Auto Physical Damage Appraisers

• Over 30 years of experience in automotive valuation and damage assessment

Every report we produce is USPAP-compliant, based on verifiable market comparables, and written in a format accepted by insurance carriers and attorneys throughout Florida.

What to Look For in a Vehicle Appraisal Firm

Before hiring an appraiser, confirm:

• They hold recognized certifications (IACP, I-Car, ASE, IAAA).

• They are licensed insurance adjusters in Florida.

• Their appraisals follow USPAP standards for legal validity.

• They have experience negotiating DV settlements with insurers.

Auto Praise meets all these standards, providing professional, data-driven valuations trusted by clients and attorneys statewide.

Frequently Asked Questions

What is diminished value?

Diminished value is the loss in market value your vehicle suffers after being repaired from an accident.

Who can file for diminished value in Florida?

Only the claimant in a third-party claim (the not-at-fault driver) can file against the at-fault driver’s insurer.

Can I file a diminished value claim with my own insurance?

No. Florida law does not allow diminished value recovery in first-party claims.

Does diminished value apply to leased vehicles?

No. You must be the vehicle owner. Leased vehicles are not eligible.

Can I file for diminished value on an older or classic vehicle?

Possibly. Vehicles over 10 years old may qualify if they are high-value or collector-grade models that appreciate or hold significant value.

Key Takeaways

• Diminished value = loss in your vehicle’s worth after an accident.

• Only third-party claimants (not-at-fault owners) can file for DV.

• The vehicle must be repaired, owned (not leased), and free of prior accidents.

• Auto Praise provides certified, USPAP-compliant diminished value appraisals trusted by insurers and attorneys.