• Is Automobile Diminished Value Based on Accidents or Just General Upkeep?

    The insurance industry really doesn’t want people to know this, but diminished value of an automobile is due to accidents. It is the difference between the price of your vehicle before and after an accident. For example, let’s say your $25,000 Ford Taurus was struck and required about $5,000 in repairs and looks great on the outside. The mere fact that it has been involved in an accident and will be reported by a public service like CARFAX diminishes the value of the vehicle. The insurance industry is responsible for the difference in value. So, let’s say you want to sell your $25,000 Taurus, and the buyer finds out about the accident and only offers $18,000 and that is the top offer you get. The insurer should have a check for $7,000 in the mail to you to make up the difference. This is something that the industry fights and hopes you don’t know about.  But, indeed, they are responsible for diminished value.