Resources
Frequently asked questions
Straight answers about diminished value, totaled vehicles, appraisal clauses and specialty appraisals. Rules vary by state, so the state pages go deeper.
Diminished value
What is diminished value?
The market value a vehicle loses because it now has an accident history, even after good repairs. Buyers and dealers pay less for a vehicle with reported damage.
Why should I care about diminished value?
Repair payments restore the vehicle’s condition, not its resale value. If you sell or trade the vehicle later, the accident history can cost you money that a diminished value claim may recover, depending on your state and who was at fault.
Do I have to sell my vehicle to make a claim?
Generally no. The claim is about the loss in market value caused by the accident; an appraisal documents it without a sale.
I already settled the repair claim. Can I still claim diminished value?
It depends on what you signed. A release limited to repairs may leave diminished value open; a full release of the property-damage claim usually ends it. Every state also has a deadline to sue; see our statute of limitations page.
Can I claim against my own insurance company?
Sometimes. Many standard collision policies have been read to exclude lost market value after proper repairs, while some states and policy wordings allow it. See first-party vs third-party claims.
Total loss
When is a vehicle considered “totaled”?
When the insurer decides repairing it would cost too much compared with its value. States use either a fixed percentage threshold or a formula comparing repair cost plus salvage value with the vehicle’s actual cash value. Your insurer applies the rule in your state and policy.
Do I have a right to my own appraisal?
Many auto policies include an appraisal clause: when you and the insurer disagree on the amount of a covered loss, either side can demand an appraisal, each hires an appraiser, and an umpire settles differences. Whether your policy has one, and its deadlines, depend on the policy and your state.
What is fair market value?
The price a willing buyer and a willing seller would agree on, both reasonably informed and neither forced to act. For vehicles it is shown with comparable vehicles of the same year, make, model, trim, mileage and condition.
Other appraisals
Do I need an appraisal to donate my vehicle to charity?
Only in some cases. If the charity sells the vehicle, your deduction is generally limited to the gross sale proceeds and no appraisal is needed. A written appraisal from a qualified appraiser is required when you claim more than $5,000 and your deduction is not limited to the sale proceeds (for example, when the charity uses the vehicle itself). Talk to a tax professional; see IRS Publication 4303.
Do I need a special appraisal for my collector car?
Collector-car insurers commonly write agreed-value or stated-value policies, and many ask for an appraisal to set the value. An independent appraisal documents the vehicle’s condition, originality and equipment.
Do I need an appraisal to buy or finance a vehicle?
Sometimes. Banks, credit unions and private lenders may require an independent appraisal, especially for classic, custom or private-party purchases.
What about certified pre-owned programs?
Many manufacturer certified pre-owned programs exclude vehicles with certain accident or structural damage history. Rules vary by manufacturer, which is one reason accident history lowers resale value.
Working with Autoloss
How much does an appraisal cost?
A typical diminished value appraisal costs $250–$350. Exotic vehicles may require additional fees. Other appraisals are quoted after a free claim review.
How long does it take?
Reports are typically 24–48 hours after all required information is received.
Do you need to inspect the vehicle?
Not normally. Our appraisers prepare the report from your repair order, photographs and market data. You are welcome to come to our office if need be.
Are you a law firm or public adjuster?
Autoloss is an independent vehicle-appraisal company, not a law firm. We do not provide legal advice or legal representation. We prepare the appraisal and answer questions about how it was prepared.
More: first- vs third-party claims · deadlines by state · how it works. State law changes and depends on the facts of each claim. For legal advice about your situation, consult a licensed attorney in your state.
Not sure whether an appraisal will help?
The claim review is free: we look at your situation and tell you whether an appraisal is likely to help. The appraisal itself is a paid report. We help from start to finish, including a custom demand letter, and our support staff is a phone call away throughout the process.