A car accident can cost you money long after your car leaves the repair shop. Even when insurance covers the damage, your vehicle may never be worth quite as much again.
One TikTok video is drawing attention to an insurance claim that many drivers may not know exists. It involves getting paid for the value a car loses after a crash, even when the repairs are finished.
The idea is called a diminished value claim. Drivers may be able to ask the at-fault driver’s insurance company for money to cover that loss. However, getting paid isn’t as simple as making a phone call.
The TikTok video promotes a car accident claim calculator. But the larger question is whether drivers can actually collect more money after their vehicle has already been repaired.
Money Left Behind?
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Here’s how diminished value works. Say someone hits your car and their insurance pays to repair it. The shop does a good job, and everything looks normal again.
Later, you decide to sell the car. A buyer checks its history and finds the accident. Even though the damage was fixed, that buyer may offer less money because the vehicle has been in a crash.
That difference in price is what a diminished value claim seeks to recover.
According to the Insurance Information Institute, drivers may be able to recover this lost value when someone else causes the accident. However, the rules depend on the state, who was at fault, and the available insurance coverage.
There’s a Catch
Insurance companies don’t automatically send out checks for diminished value.
The Washington State Office of the Insurance Commissioner explains that drivers must prove their vehicle lost market value after repairs.
That could mean gathering repair records, looking at prices for similar cars, or paying for an appraisal. Even with that proof, an insurance company can challenge the amount requested.
The agency also notes that drivers typically file these claims against the at-fault driver’s insurer rather than their own.
Before You Settle
There’s another detail drivers should consider before accepting a final settlement.
Signing an agreement that releases the other driver or insurer from further claims could affect whether additional compensation is available. Drivers should check what the agreement covers before signing.
A diminished value claim also doesn’t guarantee a large payment. The amount depends on the vehicle’s age, condition, accident history, and damage.
Some cars may lose very little value, while others could suffer a much larger drop in resale price.
For drivers interested in filing, Washington insurance regulators recommend speaking with the claims adjuster and gathering documents that show the loss in value. An independent appraisal may also help support the request.