Both claims are about your vehicle's value, but they apply at opposite ends of a claim. A total loss claim covers a vehicle that will not be repaired. A diminished value claim covers the value a repaired vehicle has lost.
After an accident, your claim generally follows one of two paths: the vehicle is repaired, or it is declared a total loss. The value questions on each path are different, and so are the claims that address them.
The Short Answer
| Total loss | Diminished value | |
| When it applies | The vehicle is not being repaired because repair cost is too high relative to value | The vehicle has been repaired |
| What is measured | The vehicle's value immediately before the accident | The difference between the vehicle's value before the accident and after repairs |
| Who usually pays | Your insurer (first-party) or the at-fault driver's insurer (third-party) | Usually the at-fault driver's insurer |
| Main question | Is the actual cash value accurate? | How much market value did the accident history cost you? |
What Is a Total Loss Claim?
When the cost to repair a vehicle approaches or exceeds its value, the insurer declares it a total loss and pays its actual cash value, which is what the vehicle was worth immediately before the accident. The insurer usually takes the vehicle and sells it for salvage.
The key issue in a total loss claim is whether that actual cash value is accurate. Learn more in our guides to when a car is considered totaled and how insurers determine actual cash value.
What Is a Diminished Value Claim?
When a vehicle is repaired, it usually comes back with an accident history. Even with quality repairs, many buyers and dealers will pay less for a vehicle that has been in an accident, particularly when the damage was significant or structural. That loss in market value is called diminished value.
Diminished value claims are most commonly made against the at-fault driver's insurance. Rules vary by state, including whether a claim can be made under your own policy. See our guide on how to file a diminished value claim.
Can You Have Both?
Generally not for the same vehicle and the same accident. A total loss settlement already pays the vehicle's full pre-accident value, so there is no repaired vehicle left to lose value. Diminished value applies only when the vehicle is repaired and returned to you.
The exception that comes up most often is a vehicle that is repaired first and later declared a total loss after supplemental damage pushes the cost over the threshold. In that case, the claim becomes a total loss claim.
If You Keep a Totaled Vehicle
If you choose to keep a totaled vehicle, the salvage value is deducted from your settlement and the title is usually branded. The reduced value of the branded vehicle is accounted for in that salvage deduction rather than through a separate diminished value claim.
See can you keep your car after it's totaled for details.
Which One Applies to You?
- Your vehicle was declared a total loss: focus on whether the actual cash value, taxes, and fees in your settlement are accurate.
- Your vehicle was repaired after an accident you did not cause: you may have a diminished value claim against the at-fault driver's insurer.
- Your vehicle was repaired after an accident you caused: diminished value claims under your own policy are limited in most states. Check your state guide.
Frequently Asked Questions
Can I claim diminished value if my car was totaled?
Generally no. A total loss settlement pays the vehicle's full pre-accident value, which already accounts for the loss. Diminished value applies to vehicles that are repaired.
Which is worth more, a total loss claim or a diminished value claim?
They are not alternatives you choose between. Whether a vehicle is repaired or totaled is determined by the repair cost and the vehicle's value. Each claim simply addresses the value question on its path.
Do I need an appraisal for both?
Not necessarily. Many total loss settlements are resolved by reviewing the insurer's valuation. Diminished value claims usually require supporting documentation, which is why many owners use an independent appraisal.
Need Help Determining What Your Vehicle Is Worth?
Premier Vehicle Valuation Specialists provides independent, market-based vehicle valuations for diminished value and total loss claims, including appraisal clause representation and umpire services.
We review the available claim information first. If an appraisal is unlikely to add value, we will tell you.
This article provides general information about vehicle property damage claims and is not legal or tax advice. Insurance requirements, claim procedures, and available remedies vary by state, policy, and individual circumstances.
