Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Managing Editor & Insurance Lawyer

UPDATED: Jan 31, 2012

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Insurance Question from Jasper, AL

Asked on 01/31/2012

How much does a brand new car diminish after a wreck? I had just purchased a brand new vehicle wednesday night and then first thing Thursday morning was rearended. The car was a 2012 Ford Edge Limited with only 100 miles on it , i literally had the car 12 hrs before this guy ran into me.

Answer given on February 02, 2012

The dimished value of a car can be quite a bit after a wreck, especially on a new car. Diminished car value is the difference between what the vehicle was worth before a car accident and what it is worth after the accident. The thought being, that because the reliability and safety of a vehicle has been compromised after an accident, once a consumer finds that a car has been involved in accident they will likely value the car less. There are certain auto insurance compannies that will replace your car with a brand new car if the car is wrecked or totalled within the first 10,000 miles.  Check wtih your auto carrier and see if this is an option.  If not, you may need to make a claim forthe dimished value. Read our article on Diminished Value and Car Insurance.  This article will give you tips on how to prove your dimished value claim. You will need great documentation on the value of the car before and after the accident repair. If you find that the insurance adjuster will not entertain the diminished value claim for your vehicle, you can consult with an attorney. An attorney can help you recover for your car’s diminished value by showing you suffered a real loss in the car accident and that you should be compensated. Click here for an attorney in your area.


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