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The original was posted on /r/lifeprotips by /u/dogeholder215 on 2026-01-03 20:59:12+00:00.
I realize a lot of people don't know this exists, and insurance companies definitely don't volunteer the info.
If your car has been in an accident, it now has a "wrecked" history on Carfax. Even if the repairs are perfect, that car is worth significantly less than it was the day before the accident. If you try to trade it in next week, the dealer will lowball you because of that history.
This loss of equity is called "Inherent Diminished Value."
In almost every state (except those with strict no-fault laws like MI/MA), the at-fault driver's insurance is legally obligated to compensate you for this difference in value.
How to get it:
- Don't accept the "17c Formula": If you ask for diminished value, adjusters often send a worksheet calculation that caps the payout at 10% of the car's value. This is an internal negotiation tactic, not law (unless you are in Georgia). You can refuse it.
- Get real numbers: Get a trade-in quote for your car with the accident history, and find comparable listings for the same car without accidents. The difference is your claim.
- Send a demand letter: State clearly that you want to be made whole for the loss of market value.
This usually only works on newer cars (under 5-7 years old) with no prior accidents, but the check can easily be $1,000 - $3,000. Don't leave it on the table.