California Diminished Value Information

What You Need To Know About California Diminished Value

Diminished Value in California

Even after quality repairs, a vehicle that has been in an accident may be worth less than it was before the loss.

This reduction in market value is known as diminished value. In California, it can apply, but it is rarely explained during the claim process.

How Diminished Value Is Treated in California

California auto insurance claims are governed by the state’s Fair Claims Settlement Practices Regulations, which establish how insurers are expected to investigate and evaluate losses.

While California law does not require insurers to automatically include diminished value in every settlement, the regulations require claims to be evaluated fairly and based on complete and accurate information.

These standards are intended to ensure that all aspects of a loss, including potential impacts on vehicle value, are considered when supported by evidence.

Claims handling standards in California are enforced by the California Department of Insurance.

What Diminished Value Means

Diminished value is the difference between what a vehicle was worth immediately before an accident and what it is worth after repairs are completed.

Even when repairs restore function and appearance, accident history alone can affect resale and trade in value.

When Diminished Value Is Most Likely to Apply

Not every vehicle experiences measurable diminished value. Certain factors make value loss more likely.

Newer vehicles with low mileage
Vehicles with documented structural or significant damage
Vehicles with clean pre loss history
Models with strong resale demand

Why Diminished Value Is Often Overlooked

Diminished value is not automatically included in most California claim settlements.

Without documentation and market based support, insurers often take the position that proper repairs eliminate any loss in value.

Need Help Evaluating Diminished Value in California

EstiVerify helps determine whether diminished value may apply and whether pursuing it makes sense based on vehicle type, damage severity, and market conditions.

Diminished Value Consultation