While some may claim Diminished Value is subjective and based upon perception or speculation, the old adage "perception becomes reality' applies and as such Diminution in Value is real simply because, for the most part, no reasonable and prudent person is willing to pay the same price for a vehicle with a history of damage as they would for one never having been damaged.
Mass marketing by companies such as CARFAX and AutoCheck has conditioned auto consumers to avoid buying cars with accidents on their vehicle history.
All U.S. states and territories except Nebraska allow third-party diminished value claims filed with the at-fault insurance.
An independent USPAP-compliant appraisal serves as proper proof of loss in a diminished value claim.
All states except Nebraska have case law allowing the car owner to collect diminished value via a third-party claim with the at-fault driver's insurance company.
Louisiana and North Carolina explicitly acknowledge diminished value in state statutes.
The ability to receive diminished value financial compensation from an at-fault driver for their negligence was decided by the Florida Supreme Court in the Siegle vs. Progressive Consumer's Insurance Company case.
The Florida Third District Court of Appeal, upheld that the correct measure of damages is the cost of repair plus any reduction in the value of the vehicle.
Along with North Carolina, Louisiana is one of the few states where diminished value is part of statutory law.
Notwithstanding, the total damages recovered by the owner shall not exceed the fair market value of the vehicle prior to when it was damaged, and the amount paid for the diminution of value shall be considered in determining whether a vehicle is a total loss pursuant to R.S.
The insurance company filed a notice to remove the lawsuit to federal district court on August 20, 2014.
It's possible to recover diminished value in Alberta but not in other parts of Canada although this may change due to developments in litigation.