Know your rights if you've been in an auto accident. You may be entitled to a check from your insurance company for Diminished Value. Diminished value is the automatic loss in value from a collision. Almost every vehicle that has been in a wreck will have some form of inherent diminished value.
It has been estimated that 55% of consumers would not buy a car that had been in an accident. 81% would not have a car that had been in a wreck unless they were given a large discount. According to http://www.autoloss.com/, their survey results show the stigma may be even higher.
Insurance companies generally do not acknowledge the right to recover diminished value!
In their online article (later removed from State Farm's website) "Diminished value fact or fiction?" State Farm has tried to discourage consumers from attempting to recover diminished value. We disagree. Many times claimants are not made aware of compensation for diminished value. Insurance companies would have you believe they are your advocates when in reality they are your adversaries. Many times insurance companies will reward their adjusters based on minimizing settlements. When a demand for diminished value is made, insurance companies may deny diminished value has happened. Some insurance companies give adjusters scripts to help them lower the value of claims. Claimants need to support their claims with an expert evaluation that diminished value has occurred.
Understanding Diminished Value Claims
Example:
Your one-year-old vehicle is worth $30,000. One day, you're hit by another car, causing $5,000 in damage. Your insurance company pays for the repairs.
Your car newly repaired car is still worth, $30,000 right? Wrong. Although your body shop does an excellent job, and your vehicle looks as good as it did before the accident, it's now much less desirable having been in a collision, should you decide to sell it now, or down the road.
Many times a frame or structurally damaged vehicle cannot be sold as a "certified used vehicle" therefore reducing the vehicles value by as much as 40%
source: http://www.autoloss.com/
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