The amount that a vehicle loses value after a wreck constitutes diminished value. This amount involves the difference between the car’s market value before the accident and the market value after an accident. You can determine how much value a vehicle has lost following an accident by considering these losses:
Repair-related: This constitutes diminished value because you might use used parts or cheaper aftermarket parts to repair your damaged vehicle. Additionally, if your auto technician doesn’t properly repair the vehicle’s body, that will affect the value of your vehicle.
Inherent diminution: Regardless of the quality of repairs, a vehicle loses value after an accident.
Claim-related: Insurance companies refuse to pay for quality parts and will often force you to use a less-experienced auto body tech because they do not want to pay the higher cost of a better mechanic.