California Diminished Value
Diminished value or diminution in value is defined as that portion of a vehicle’s pre-loss value that cannot be restored through the repair process.
There are three levels of diminished value:
Immediate diminished value is the difference in resale value of a vehicle immediately before an accident and prior to repair. When resolving property damage claims inherent diminished value and repair related diminished values are normally used.
Inherent diminished value is defined as the amount by which the resale value of a repaired vehicle has been reduced solely as a result of the vehicle now having significant damage history. This history decreases the overall market value of the vehicle.
Repair related diminished value is the loss of the vehicles value as a result of improper collision repair. This is an additional claim to the claim for inherent diminished value.