Understanding Diminished Value Claims After a Nevada Car Crash

After a car accident in Nevada, your first concern should be making sure you, your passengers, and the other party are physically okay. Next, you’ll focus on getting your car repaired.

However, once the dust settles, you might discover something surprising: even after repairs, your car is worth less than it was before the crash. That loss in value is called diminished value, and depending on the circumstances, you may be entitled to compensation for it.

Unfortunately, insurance companies don’t like to talk about diminished value. They’ll often downplay it, deny it, or hope you never ask. That’s why it’s so important to understand your rights, how Nevada law treats these claims, and what steps you need to take to protect your financial recovery.

In this post, we’ll explore what you need to know about diminished value after a car crash in Nevada, including:

• What a diminished value claim is
• How Nevada law handles these claims
• How to document and prove your loss
• Common insurance company tactics
• Why working with a car accident lawyer can make all the difference

What is a diminished value claim?

Diminished value refers to the loss in market value a vehicle suffers after it’s been involved in an accident, even if it’s been fully repaired. Once a car has a crash history, it’s just not worth as much to a buyer. That drop in value is real, and under the right conditions, you can file a claim to recover it.

There are three types of diminished value:

• Immediate diminished value: The reduction in value right after the accident, before any repairs are made.
• Inherent diminished value: The most common form, this is the loss in value that remains even after repairs, specifically because of the accident history.
• Repair-related diminished value: When the value drops further because the repairs were low-quality or incomplete.

In most personal injury cases, we’re dealing with inherent diminished value. Even with top-notch repairs, a vehicle that’s been in a wreck is almost always worth less than a similar one with a clean history.

Is diminished value covered in Nevada?

Yes, Nevada law allows for diminished value claims, but only under certain conditions.

If someone else caused the accident (for instance, you’re not at fault), you can file a diminished value claim through their property damage liability insurance. Nevada recognizes that the at-fault party is responsible for all your losses, and that includes the lost resale value of your car.

However, if you were at fault, your own insurance policy probably won’t cover diminished value. Most standard policies don’t provide this kind of coverage under collision insurance. The only exception is if you purchased a special policy that includes diminished value protection, which is rare.

How to prove diminished value

To get compensated, you’ll need to prove that your car is worth less because of the car accident, even after repairs. That means documenting:

• Your car’s pre-accident value
• The nature and extent of the damage
• The quality of the repairs
• The current post-repair value

A successful diminished value claim usually includes:

• A vehicle history report (like CARFAX) showing the accident
• Photos and repair records showing the extent of damage and quality of work
• A professional appraisal of the vehicle’s current value compared to a similar, undamaged car

There are also online diminished value calculators, but these tools aren’t always accurate, and insurers rarely accept them as proof. A certified appraisal from a qualified vehicle expert is usually what’s required.

Common insurance tactics to watch out for

Insurance companies know that diminished value claims are valid, but that doesn’t mean they’ll pay them willingly. Here are a few of the tactics they may use to reduce or deny your claim:

1. Claiming the repairs “fully restored” the vehicle’s value

Insurers love to argue that because your car looks and drives fine, it must be worth the same as before. However, claiming that doesn’t make it true.

2. Denying diminished value claims altogether

Some adjusters will simply tell you that diminished value claims aren’t allowed in Nevada. That’s not true.

3. Offering a lowball settlement

If they do make an offer, it may be a fraction of what you actually lost.

4. Delaying the process

Insurance companies know that the longer you wait, the more likely you are to give up.

5. Blaming prior damage or depreciation

Insurers may argue that your car had existing issues or was already worth less due to age or mileage.

This is where having a skilled car accident lawyer can make all the difference.

Why you need a car accident lawyer for a diminished value claim

Diminished value claims aren’t simple. You’ll need strong evidence, expert opinions, and a good understanding of Nevada’s insurance laws.

Here’s how a personal injury attorney can help:

• Evaluate your claim’s true value
• Refer you to trusted vehicle appraisers
• Handle negotiations with the insurance company
• Fight back against denial or delay tactics
• Make sure your claim includes all your losses, not just repairs

When to file a diminished value claim

You don’t have unlimited time to pursue a diminished value claim in Nevada. The state’s statute of limitations for property damage claims is three years from the date of the accident.

The sooner you start, the easier it is to gather documentation, get an accurate appraisal, and file your claim before evidence disappears or value calculations become fuzzy.

It’s possible to reclaim diminished value

Diminished value might not be the first thing on your mind after a crash, but it can cost you thousands of dollars when it’s time to sell or trade in your car. If you weren’t at fault, Nevada law is on your side. But insurance companies won’t make it easy.

If you suspect your car has lost value after an accident, don’t try to go it alone. Speak with an experienced car accident lawyer who understands how to handle diminished value claims and who’s not afraid to push back when insurance companies play games.

Get help from a trusted Las Vegas car accident lawyer

At Claggett & Sykes, we know how to handle every part of your case, including property damage claims that insurance companies hope you’ll ignore. Contact us today for a free consultation.