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Retailers Insurance Group Blog

All You Ever Wanted to Know About Insurance

Auto and Diminished Value

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If you have ever been in an auto accident you know that after the completion of all repairs your vehicle’s value is not the same as a similar model that was never damaged.  When time for the trade-in or sale arrives, CarFax.com will reveal the history.  With a click of the mouse, your vehicle will be worth less to the buyer.

If you live in the following states, Arizona, Colorado, Florida, Indiana, Iowa, Kansas, Louisiana you may be in luck against a third party.  Those states have approved some form of diminished value recovery.  Most of the remaining states have allowed an exclusion be placed into the auto policy prohibiting payment for diminished value, Georgia being the exception at this time.

The fall back may be the IRS.  A tax deduction may be possible for the unreimbursed loss using IRS Form 4684.  Consult your tax professional and do your research as to the amount you might claim.