If your car is damaged in an accident, insurance should cover repairs. That’s great, but you may run into a problem if you later decide to sell the car. Most buyers – including dealers if you trade the car in – will not pay as much for a car that was in an accident, even if that car was repaired. The average buyer will simply not pay as much for a car that damaged in an accident.

That’s where diminished value claims come in. A diminished value claim reimburses you for the loss in value. However, your insurance company will not automatically send you a check – you will have to file a claim, in addition to the claim you make to have the car repaired.

You will also have to prove the car is worth less than it would have been. Fortunately proving your case is relatively easy; visit several dealerships and ask for offers on the car. The difference between “book” value and the prices you are offered can form the basis for your claim. The newer your car, the more likely you are to receive a diminished value claim.