The point of car insurance is to make you whole again after an accident.
But no matter how expertly repaired, a car with an accident history will likely be worth less than one without -- even if the car looks as good as new and runs better than it ever has.
A car that has never been in a
may be worth $15,000 at resale but thousands less if it has been in an accident and repaired. There's a way to make up the difference: a diminished value claim.
insurance claims allow car owners to recover the difference between a car's pre-accident value and its value after repairs.
Don't expect the insurance company to help.
Some car owners file on their own, but others hire a private company to document the lower value. If the insurance company resists, owners may have to take them to court.
"It's definitely a challenge," says
, an attorney in Winter Park, Fla. "You have to put up a fight."
Before and after
If the accident was your fault, don't expect to be able to claim diminished value against your own policy. Few states -- and few insurance contracts -- allow it.
But if someone hits your car, nearly every state allows diminished value claims from an at-fault party's insurance company. Even if the person who hit you is uninsured, about half of the states allow diminished-value collection on your own uninsured motorist property damage coverage. (See "
Why you don't have enough uninsured motorist coverage
Even so, "just because state law allows a diminished value claim doesn't mean insurers are required to pay it," says CarInsurance.com consumer analyst Penny Gusner. "Don't expect the process to be easy."
For a successful claim, you'll need an appraisal of the car's value both before the accident and after the repairs have been done.