“Diminished Value” is the damage or loss that the owner of a motor vehicle incurs when a motor vehicle is damaged in a motor vehicle accident. The damage is the amount of money the vehicle has depreciated or lost due to the known fact that a wrecked and repaired car is worth less than the same, non-wrecked car. Given the choice between two identical cars, would you buy the previously wrecked car for the same price as the non-wrecked one? Probably not as most car reports show if and when a vehicle has been repaired from a major accident.

Once it is known that the car or truck has been wrecked and repaired, the value may drop a few hundred dollars to many thousands of dollars. The amount of this depreciation or diminished value is best determined by experts who often consider thirty or more factors. These factors often include the cost of the repairs, the ratio of pre-accident value to the cost of the repairs, frame damage, type of vehicle involved, the age of the vehicle, etc. The amount of the diminished value is based on the amount that future buyers will deduct since it has been involved in a wreck.


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Without an experienced diminished value attorney, some insurance adjusters will often refuse to pay diminished value or offer pennies on the dollar to settle your diminished value claim.

More importantly, it is imperative that you be very careful and cautious when signing any Release from an insurance company. If you sign a General Release, then you usually have waived your claim to any other claims such as personal injury or wrongful death. An insurance adjuster may refer to the release they give you as a property damage release only, but that may not be true. The controlling language will be found in the release itself.

What are the penalties if the insurance company refuses to pay my diminished value?

Under Georgia law, you or your attorney can make a 60-day demand on the insurance company to pay the full value of your diminished value claim pursuant to OCGA 33-4-7. If the insurance company’s refusal to pay the claim is in bad faith you will be entitled to recover an additional $5,000 penalty or 50% of your claim, whichever is greater, as well as all reasonable attorney’s fees.