Driver Advisory: Crash Victims May Be Leaving Insurance Money Unclaimed

A collision can end up costing money long after the vehicle has been repaired. Even if an insurer pays for the damage, the car may still be worth less than it was before the wreck.

A TikTok clip is spotlighting an insurance claim that many motorists may not realize exists. It concerns compensation for the value a vehicle loses after an accident, even after the repairs are complete.

This type of request is known as a diminished value claim. In some cases, drivers can seek payment from the at-fault driver’s insurance company for that loss. But receiving that money is not as simple as making a quick call.

The video points viewers to a car accident claim calculator, but the bigger issue is whether drivers can actually recover extra money once the vehicle has already been fixed.

What the Claim Covers

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Here is the basic idea behind diminished value. If another driver hits your car and their insurance covers the repairs, the shop may restore the vehicle so it appears normal again.

Even so, when you later try to sell it, a buyer may see the crash history and offer less money than they otherwise would. The fact that the car was damaged, even if repaired, can lower its market value.

A diminished value claim is intended to recover that difference.

According to the Insurance Information Institute, drivers may be able to seek compensation for this lost value when someone else is responsible for the crash. Still, the rules vary by state, fault determination, and the insurance coverage available.

Why It Is Not Automatic

Insurance companies do not automatically issue payments for diminished value.

The Washington State Office of the Insurance Commissioner says drivers have to show that their vehicle lost market value after the repairs were completed.

That may require repair documents, comparisons with similar vehicles, or a paid appraisal. Even then, the insurer may dispute the amount being requested.

The agency also says these claims are usually filed with the at-fault driver’s insurer, not the driver’s own company.

Before Signing Anything

Drivers should also think carefully before accepting a final settlement.

If someone signs an agreement releasing the other driver or insurer from future claims, it could affect whether any additional compensation can still be pursued. It is important to understand exactly what the paperwork covers before agreeing to it.

A diminished value claim does not necessarily lead to a large payout. The amount can depend on the car’s age, condition, prior accident history, and the extent of the damage.

Some vehicles may lose only a small amount of value, while others could see a much steeper drop in resale price.

For drivers who want to file, Washington regulators recommend speaking with the claims adjuster and collecting records that support the loss in value. An independent appraisal may also strengthen the claim.