Diminished Value Claims After a Tempe Car Accident: What You Need to Know
After your vehicle is repaired from a car accident in Tempe, it might look good as new. But when it comes time to sell or trade it in, you may learn the hard truth—your car is worth less now simply because it was in a wreck. This is where diminished value claims come into play.
Even if the damage was fully repaired, buyers and dealers typically won’t pay the same amount for a vehicle with an accident history. That loss in value is real—and under Arizona law, you may have the right to recover it. At Tempe Car Accident Attorney, we help clients pursue full compensation after a crash—including property damage claims many people overlook.
What Is Diminished Value?
Diminished value refers to the reduction in your car’s resale value after it has been damaged in an accident and repaired. The vehicle might function perfectly, but the accident history will show up on vehicle reports like Carfax, making it less attractive to future buyers.
There are generally three types of diminished value:
Immediate diminished value: The difference in resale value right after the accident before any repairs are made
Inherent diminished value: The reduction in value that remains even after proper repairs
Repair-related diminished value: When the repair itself was substandard or used non-OEM parts
The most common claim in Arizona is for inherent diminished value, especially in collisions with moderate to severe damage.
Is Diminished Value Compensable in Arizona?
Yes—Arizona does recognize diminished value claims against at-fault drivers and their insurance companies. If someone else caused your crash, and their insurer is paying for the repairs, you can make a separate claim for diminished value.
However, if you were partially at fault, or dealing with your own insurer under collision coverage, collecting diminished value may be more difficult. Insurance companies often won’t tell you this compensation is even available, especially in busy urban areas like Downtown Tempe, where they process claims at scale and hope you don’t ask questions.
How Do You Prove Diminished Value?
Proving diminished value isn’t just a matter of saying, “My car is worth less.” You’ll need evidence, which typically includes:
Pre-accident vehicle value (based on mileage, model, condition, etc.)
Post-repair value estimates from licensed appraisers
Documentation of accident history from sources like Carfax
Evidence that repairs were done professionally
Many clients in South Tempe and Meyer Park have been shocked to find that their repaired vehicles appraised for thousands less than similar models with no accident record. That’s money you can—and should—recover.
What Types of Accidents Trigger Diminished Value?
Generally, moderate to severe accidents create the strongest basis for diminished value claims. These include:
Even with proper repairs, frame damage, airbag deployment, or significant panel replacement can raise red flags for potential buyers—lowering resale value even if the car functions perfectly.
When Should You File the Claim?
Ideally, you should file a diminished value claim soon after the repairs are complete. Waiting too long makes it harder to link the diminished value directly to the crash, especially if the car suffers any new damage later.
Be sure to get a diminished value appraisal from a certified expert before starting negotiations with the insurance company. We've seen drivers in Escalante and Holdeman receive $2,000–$5,000 in diminished value compensation—money that would have been left on the table without the right documentation.
Can You Pursue Diminished Value If the At-Fault Driver Was Uninsured?
Diminished value claims typically require liability coverage from the at-fault driver. If the driver who hit you was uninsured, and you’re relying on your own collision coverage, your insurer is not obligated to pay diminished value unless explicitly stated in your policy.
However, if you carry uninsured motorist property damage coverage, that may open the door to recovery. These cases are more complex, which is why it’s smart to speak with a Tempe uninsured driver lawyer to explore your options.
Can You File for Diminished Value After a Total Loss?
No. If your vehicle is declared a total loss, you’ll receive a payout for the actual cash value (ACV) of the vehicle, and diminished value no longer applies. This compensation is specifically for vehicles that are repaired but still lose value due to their accident history.
You can read more about how total loss claims work here.
How Long Does It Take to Settle a Diminished Value Claim?
Every case is different, but a typical diminished value claim can take anywhere from a few weeks to a few months. The insurance company may request documentation, attempt to deny or lowball your claim, or require further negotiation. If they delay or act in bad faith, a lawsuit may be necessary.
In one case near North Tempe, we recovered an additional $3,400 in diminished value after the insurer originally offered $0—simply by submitting a professional appraisal and making a legal demand.
Why Diminished Value Often Gets Overlooked
Most Tempe drivers are unaware that diminished value is even a recoverable category of damages. Insurers don’t volunteer this information, and many body shops are focused only on getting the car fixed—not recovering lost equity.
But if you ever plan to sell, trade in, or refinance your vehicle, that diminished value will catch up with you. We’ve seen owners of newer-model vehicles—like trucks and SUVs—take the biggest financial hit when reselling after a crash.
If your car was damaged in a hit-and-run, rideshare accident, or even while parked, you may still have a valid diminished value claim.
Final Takeaway: Don’t Let Insurance Skip What They Owe You
Diminished value is a legitimate loss—and in many Tempe accidents, it can be worth thousands of dollars. If your car’s been repaired but carries an accident record, you shouldn’t bear the cost of that depreciation alone.
If you’re unsure how to calculate the diminished value of your car, need help finding an appraiser, or want to pursue the claim properly, our team is here to help. Visit our legal resources page or reach out for personalized guidance.
