In today's automotive markets in which vehicle values are affected by the free flowing of information on effects such as collision damage, refinishing, total losses, and flood damage, the values are more sensitive than ever. If your car or truck has been damaged through the negligence of another, you may have a claim for diminished value. The insurance company of the at-fault party owes you for this loss, regardless of what they may have told you. In virtually every state in the US diminished value losses are recoverable and supported by regulation or case law.

If your car was involved in a collision, chances are good that it now appears on consumer accessible websites such as CarFax® and Experian's AutoCheck©. Car dealers routinely access these databases for information regarding collision damage, frame damage and water damages caused by floods. These services, however, do not gather information from the loss data from insurers, who have always resisted sharing this type of information.

The insurance department in the state of Georgia, where the landmark Mabry v. State Farm case decided in that state's Supreme Court that diminished value losses were due and payable to every insured person under their own coverage (regardless of who was at fault), recently issued a bulletin to inform motorists that they do not endorse any particular formula or method of calculating the diminished value losses. This action was taken in response to reports of insurance companies insisting that the values calculated by an insurance company were "approved by the state's insurance department," which was untrue. This is a good example of the misleading tactics used by insurance companies to shortchange their policyholders and claimants from what is truly owed.

In calculating diminished value losses one should bear in mind that the pre-loss value should be taken as of the date of loss, as the devaluation stems from the moment of impact. Many valuation sources can be used, such as Kelley Blue Book, NADA, and Edmund's. Or in the case of specialty autos, such as collector cars or modified vehicles, one can use the actual prices of comparable autos for sale.