Driver’s Insurance Accepts Fault After Accident. Then The Victim Asks For A ‘Diminished Value Claim’: ‘My Daughter Got $1,500’

After you get into a car accident, you might think that you’re only entitled to whatever the other person’s insurance offers you. You may actually be able to additional compensation that many people don't realize is an option.

Getting into an accident comes with a host of other costs. While insurance may cover your destroyed car, that doesn’t make up for the fact that you now have to find a new vehicle — and figure out your own transportation in the meantime.

While there may be ways to cover some of these costs, other costs will have to be handled out of pocket. One way to reduce these out-of-pocket costs is by pursuing other avenues of payment from the other person’s insurance.

For example, many internet users claim that you can go after the other person’s insurance for a “diminished value claim.” But does that really work?

What Should You Do After An Accident?

According to TikTok user Maggie (@maggie_k46), if someone hits your car and their insurance accepts fault, you should not immediately close your case.

Instead, Maggie suggests calling their insurance and asking for a “diminished value claim.”

“The car is worth less now because the accident is on its history report, even though it's been fixed,” she explains. “When you go to sell it or trade it in, people see that and offer you less. And in a lot of states, they can owe you that difference.”

According to Maggie, many insurers will not mention this by themselves. Instead, it’s incumbent on the person who had their car damaged to do this.

Can You Really Get Compensated For Diminished Value?

There are reasons to doubt this video. To start, it appears to be an undisclosed ad from the website mentioned in the clip. Another video with this exact same script made waves in July of this year, and videos with similar scripts are frequently posted online — all advertising the same site.

Still, just because the video is likely an ad, that doesn’t necessarily mean the information it conveys is incorrect. In fact, much of what this ad claims is accurate.

It’s true that a car accident can reduce your car’s value, even if the damage was completely repaired. According to an archived article from Carfax, vehicles with reported damage saw an average of a $500 reduction in price, while vehicles with reports of severe damage sold for $1,700 lower than those without damage.

For third-party claims against the at-fault driver’s insurer, diminished value coverage is often recoverable. That said, it is often subject to evidence, the insurance coverage one has, and the state in which the accident occurred, as different jurisdictions have varying policies about this coverage.

Do Insurers Really Keep This A Secret?

There’s some evidence to suggest that the at-fault insurer will not freely offer diminished value payments. According to the Washington State Office of the Insurance Commissioner, payments for diminished value aren’t automatic. Instead, they are subject to proof that a car’s market value has decreased even after repairs.

In other words, these claims tend to be handled differently and separately from settlements to repair and compensate for damages to people or property. As such, consumers usually have to initiate the process themselves.

To be clear, unless the damage was severe, one should not expect a massive payout from a diminished value claim alone. An example provided by Kelley Blue Book shows how the math often shakes out. In a 2024 case, a woman filed a diminished value claim with Liberty Mutual. The accident involved a 2024 Hyundai Tucson that required over $2,000 in repairs.

Using the Kelley Blue Book formula, the driver believed that they would receive a settlement between $650 and $715. However, Liberty Mutual only offered them $400, characterizing the damage to their car as cosmetic.

Drivers Report Mixed Results

In the comments section, car owners said that their own experience with these claims wasn’t always successful. Some had positive stories to share, while others said that the diminished value claim still failed to make them whole.

“Correct! My daughter got $1,500. She simply asked,” one person exclaimed

“They give you so much less than the actual diminished value,” a second countered.

Still, it appears that this is a worthy route to pursue after an accident. Even if you only end up receiving a couple hundred dollars, it can fill some of the financial gaps that can result after an accident.

We’ve reached out to Maggie via TikTok direct message and comment. This article will be updated if she responds.