Understanding Diminished Value in Florida | Lost Value Law

If your vehicle was damaged in an accident, repaired, and returned to you, you may think the claim is over. The repair shop fixed the car. The insurance company paid for the repairs. The vehicle looks fine.

But there may still be another loss: diminished value.

Diminished value is the loss in your vehicle’s market value after an accident. Even when repairs are done correctly, a vehicle with an accident history is usually worth less than a similar vehicle with a clean history. Buyers, dealers, and online valuation tools often treat accident history as a major negative. That loss in value can be real money.

In Florida, diminished value can be part of a property damage claim when another driver caused the accident. Florida courts have recognized diminished value as a possible covered loss in a third-party property damage claim, and that the claimant is responsible for proving the loss.

What Is Diminished Value?

Diminished value is the difference between:

1. What your vehicle was worth before the accident; and
2. What your vehicle is worth after the accident and repairs.

For example, imagine two identical vehicles are for sale. Same year. Same mileage. Same trim. Same condition. One has a clean history. The other was involved in a collision and has a reported accident on Carfax or AutoCheck.

Most buyers will not pay the same amount for both vehicles.

That difference is the heart of a diminished value claim.