Understanding Diminished Value Claims in Colorado: What Happens When Your Car Loses Value After an Accident

Even after your car has been fully repaired following a crash, it may never be worth what it was before the collision. That drop in value—called diminished value—can be significant, and in many cases, you’re entitled to compensation for it.

At Genco Injury Attorneys in Denver, we help Colorado drivers understand and pursue diminished value claims as part of their full recovery after an accident. If your vehicle has lost market value, we can help you take action.

What Is a Diminished Value Claim?

A diminished value claim seeks compensation for the loss in your vehicle’s resale or trade-in value after an accident, even if repairs are completed to a high standard. Car buyers often avoid vehicles with a collision history, regardless of the quality of repairs, which means your car is now worth less than a similar model with a clean record.

This lost value is especially relevant if:

• Your car was newer or had low mileage.
• The damage was significant.
• Structural or frame damage occurred.
• The accident is now part of the vehicle’s Carfax or repair history.

In short, diminished value represents the financial hit you take just because your car was in a crash, and Colorado law allows you to pursue that loss from the at-fault driver’s insurance company.

How Is Diminished Value Calculated?

Understanding how diminished value is calculated is essential because insurers often attempt to undervalue or deny these claims altogether. There’s no single fixed formula used across all cases in Colorado. Instead, diminished value is generally assessed using a combination of objective data and insurance-driven formulas.

Most insurers look at factors such as:

• Pre-accident market value, often based on Kelley Blue Book, NADA, or dealership pricing.
• Post-repair market value, factoring in accident history.
• Severity and type of damage, including frame damage, which often results in more value loss.
• Vehicle age, mileage, and condition.
• Accident visibility (whether it shows up on reports like Carfax).

Some insurers may apply caps or percentage-based limits—such as offering no more than 10% of the car’s pre-accident value—but these are often arbitrary and not reflective of your actual losses. That’s why it’s essential to work with an experienced attorney who can challenge lowball calculations and advocate for full, fair value.

At Genco Injury Attorneys, we help our clients present accurate, well-documented valuation evidence to support the highest possible recovery for their vehicle’s diminished worth.

Who Qualifies for a Diminished Value Claim?

Not every driver or vehicle qualifies for a diminished value claim in Colorado, but many do. Understanding the eligibility requirements can help you determine whether it’s worth pursuing.

To qualify for a diminished value claim:

• You must not be at fault for the crash. These claims are generally made against the other driver’s insurance.
• Your vehicle must have sustained physical damage from the accident.
• Repairs must be completed or estimated by a qualified body shop.
• The vehicle must be registered and titled in your name, not leased (most lease agreements don’t allow you to claim diminished value).
• The accident and repair history must be documented and provable.

Additionally, newer vehicles with low mileage tend to see the greatest diminished value, since they lose more resale potential after a crash. Older cars, those with high mileage, or those with a history of prior accidents may still qualify, but for a reduced amount.

We’ll help assess whether your car qualifies and how much value you may have lost—and we do it as part of your overall case, with no additional fee.

How to Prove a Diminished Value Claim

To support your claim, we help gather:

• Vehicle appraisals before and after the accident.
• Body shop estimates and invoices.
• Photos of damage and repairs.
• Vehicle history reports.
• Expert opinions or valuation tools.

At Genco Injury Attorneys, we include diminished value claims at no additional fee as part of your personal injury case. We believe you should be fully compensated, not just for medical bills, but for all property-related losses as well.

Let Us Help You Recover Your Full Loss

If your car was damaged in a Colorado crash, don’t settle for repair costs alone. You may be entitled to recover the lost value of your vehicle, and we’re here to help ensure that happens.

Contact Genco Injury Attorneys in Denver today at (303) 500-1376or online for a free consultation. Let us fight for everything you’re owed.