Colorado Diminished Value Claims – All You Need to Know (2025)

Suffering a car accident can be extremely stressful and uncertain, especially when your vehicle sustains damage or you are left with devastating injuries. In cases where your car is damaged, the value of your vehicle can be reduced, even after repairs are made. This reduction is known as “diminished value” in Colorado. In some cases, you can file Colorado diminished value claims with the assistance of an attorney.

After a car is involved in an accident, even if that accident was not your fault, car dealerships and potential buyers will view the accident history as a reduction of that car’s value. Therefore, you may not receive the money that you deserve for the vehicle. If you have suffered a Colorado car accident that was not your fault, such as being struck by a drunk driver or suffering due to another driver’s inattention, the attorneys at Cheney Galluzzi & Howard can file a diminished value claim on your behalf.

What Is Diminished Value?

In Colorado, diminished value refers to a vehicle’s reduction in worth because it was involved in a car accident or suffered damage to its body. Diminished value represents the difference between the pre-accident value of the vehicle and the value after repairs have been made. Diminished value occurs when a post-accident car no longer has the same value on the market as an accident-free vehicle.

These can be extremely frustrating times, especially in cases where the accident that caused the diminished value was not your fault.

It can also be easy to get diminished value and the repair costs confused following a car accident. These are actually two separate things, as the cost of repairs is the dollar amount it takes to get your vehicle back into working order. These funds can be obtained from your insurance company. However, insurance companies can sometimes neglect the fact that even the most robust repairs cannot recover the full amount of the vehicle’s worth and erase its damage history.

How Is Diminished Value Calculated?

You may find yourself needing to file a diminished value claim, and you might wonder how these claims are calculated. Calculating the worth of these claims can be complicated, but the following steps provide a necessary outline:

• Determine Pre-Accident Value: When calculating the diminished value of your vehicle following an accident, you will first want to figure out the market value of your vehicle before the accident took place. Factors that should be considered in these determinations can include the make, model, mileage, year, and overall condition of the vehicle as well as if there were any previous accidents or repairs done.
• Assess Post-Repair Value: Get an appraisal or evaluation of your vehicle to determine its current value following necessary repairs. It is important that you obtain this appraisal or evaluation from a reputable appraisal company. You can do this through your local dealership or through websites that can provide honest itemizations of the value of your vehicle.
• Calculate the Diminished Value: Once the above values have been calculated, you can subtract the post-repair worth of the vehicle from the pre-accident value. This number will be the diminished value of the vehicle.

Value Lost Due to Car Accidents

When your car is involved in an accident, no matter your fault status, the amount of value it may lose will depend on several factors. These can include:

• The severity and nature of the damage done
• The age of your vehicle at the time of the accident
• The vehicle’s overall condition, including any add-ons or mileage

In most cases, the more severe the accident, the higher the vehicle’s diminished value.

Filing a Diminished Value Claim in Colorado

The first step in filing a diminished value claim in Colorado is to prove your loss by supplying the necessary evidence. This can include the appraisal you requested when calculating your vehicle’s diminished value. You can then submit this proof to the at-fault party’s insurance company. Once this proof has been submitted, the insurance company will most likely offer you a settlement. However, they may also deny the claim.

It can be wise to have an attorney on your side during this process. They can mitigate your chances of having the claim denied or being offered a lowball settlement amount.

FAQs

Q: Is Diminished Value the Same as Depreciation in CO?

A: It can be easy to get diminished value and depreciation confused, but they are not the same thing. Depreciation refers to the natural decrease in value that occurs over time because of age, mileage, and everyday wear and tear on a vehicle. Diminished value is the reduction in worth after the vehicle suffers damage in a car accident.

Q: How Long Can It Take to Settle a Diminished Value Claim?

A: Without knowing the specifics of a case, it can be difficult to know how long it might take to settle a diminished value claim for a vehicle after its involvement in a car accident. Several factors can affect the overall timeline of these claims, including the complexity of the claim, the value of the vehicle, and the cooperation of the insurance companies involved in the claim.

Q: Does Diminished Value Really Matter?

A: Diminished value of a vehicle can affect the overall worth of that vehicle. Most importantly, diminished value will be a factor if you ever try to resell your vehicle. Whether you are hoping to trade in your car for a newer model or want to sell it privately, a vehicle’s accident history can severely impact the value of your car and how much you could get for it.

Q: Is an Insurance Company Obligated to Pay for Diminished Value?

A: The obligations of an insurer to pay for the diminished value of a vehicle ultimately depends on the circumstances surrounding the claim and the insurance policies involved. It can be vital to first review your insurance coverage. Then, consult a Denver car accident attorney who can determine whether you are entitled to recover compensation for the diminished value of your vehicle.

Let the Attorneys at Cheney Galluzzi & Howard Handle Your Diminished Value Claim

If you have suffered a car accident in Colorado, it is important to consider the diminished value of your vehicle when seeking fair compensation for the damage you have suffered. Understanding diminished value can be complex, but the attorneys at Cheney Galluzzi & Howard are experienced in these situations. We can pursue a diminished value claim and secure fair compensation for your vehicle’s lost value.

Contact our offices today to schedule a consultation and learn more about how we might be of service to you.