So, your car has been in an accident. The repairs are done, the bodywork looks solid, and it drives like it used to. But something still doesn’t feel right. If you tried to sell it tomorrow, it wouldn’t fetch what it did before the wreck—even if it looks perfect. That’s where a diminished value claim comes in. And to start that process, you’re going to need a strong diminished value claim letter.
At The Auto Mediator, we’ve helped drivers all over the U.S. recover the value their vehicles lost post-accident—over $30 million in recoveries and counting. And trust us, we’ve seen the difference a well-written letter can make.
What Is a Diminished Value Claim Letter?
A diminished value claim letter is essentially your formal request to an insurance company, asking them to pay for the lost value of your car after it’s been repaired from an accident. Even if your car looks as good as new, it now carries an accident history that hurts its resale or trade-in value.
The goal of your letter is to clearly, concisely, and confidently explain:
- What diminished value is
- Why your car qualifies
- How much value has been lost (backed up by expert evidence)
- Why the insurer should compensate you
Gather Your Evidence First
Before you even open a blank document, make sure you’ve got the evidence lined up. At The Auto Mediator, we always tell clients: the more solid your proof, the harder it is for insurance to push back.
What to include:
- A professional diminished value appraisal (ideally from someone like us—we specialize in this!)
- Photos of the vehicle pre- and post-repair
- The original repair estimate and invoices
- A Carfax or similar vehicle history report
- Comparable vehicle listings (showing what similar cars are going for without accident histories)
If this sounds like a lot, it is. But it’s also the difference between a denied claim and a check in your hand.
The Structure of Your Claim Letter
You don’t need to be a lawyer or a professional writer to make this effective. Here’s a simple format that works:
- Header / Contact Info
Start with your name, address, phone, email, and the insurance claim number. Include the adjuster’s name and company info if you have it. - Introduction
State that you are submitting a diminished value claim for your vehicle. Mention the date of the accident, who was at fault, and the vehicle’s make/model/year. - Explanation of Diminished Value
Briefly explain what diminished value is. Keep it educational but to the point:
Even though my vehicle has been fully repaired, its market value has been negatively impacted due to the accident history. This loss in value is referred to as diminished value and is recognized as a legitimate form of damage by the courts and insurance industry.
- Evidence Summary
List the documents you’re including. You don’t need to explain every item, just make it clear your claim is well-supported. - The Ask
State the amount you’re seeking in compensation and how you arrived at that number (e.g., a professional appraisal).
Based on the enclosed appraisal from The Auto Mediator, I am requesting compensation in the amount of $4,200 for the documented diminished value of my vehicle.
- Closing
Wrap it up politely but firmly. Express your expectation for a timely review and response, and thank them for their attention. - Signature
Sign and date it. If you’re emailing it, a typed signature is fine.
Sample Opening Paragraph
Want a head start? Here’s a sample you can adapt:
Dear [Insurance Adjuster Name],
I am writing to submit a formal claim for the diminished value of my 2020 Honda Accord, which was involved in an accident on May 14, 2024. While the vehicle has been professionally repaired, the accident has significantly reduced its resale value, and I am seeking compensation for that loss.
A Note on Tone
Be firm, not aggressive. Respectful, not submissive. The goal is to sound like someone who knows their rights and has done their homework. Which, if you’ve been working with The Auto Mediator, you absolutely have.
Common Pitfalls to Avoid
We’ve reviewed hundreds of these letters and seen the mistakes that get claims denied or delayed. Don’t:
- Skip the appraisal or try to estimate value yourself
- Ramble or get emotional
- Send without documentation
- Use vague language (“I think my car is worth less now”)
Instead, keep it clean, confident, and backed by expert info.
We’ve Got Your Back
We’ve been in this business for over a decade, and we’ve helped thousands of drivers like you get what they deserve. Whether your car is a Toyota Corolla or a Tesla Model S, your vehicle has value—and when that value takes a hit, we’re here to help you recover it.
Need help writing your letter or getting a rock-solid appraisal to back it up? Contact The Auto Mediator today and let’s get started on winning your claim.