Diminished value after an accident — how it's calculated

Even after a professional repair, an accident-damaged vehicle is considered worth less on the market than an accident-free vehicle of the same age and condition. This loss in value is known as merchantable diminished value — it is reimbursed in addition to the repair costs.

There are various recognized calculation methods that take into account factors such as the vehicle's age, mileage, extent of damage and the components affected. The expert determines the diminished value as part of the damage report and justifies it comprehensibly.

For very old vehicles or those with very high mileage, diminished value is often no longer applied, since the market barely distinguishes prices for accident damage on such vehicles anymore. The claim also generally does not apply to purely minor damage.

In an accident that wasn't your fault, the other party's liability insurer covers the diminished value together with the other damage items. Read more about this in our article on cost coverage.