A car damaged in an auto accident may have reduced market or resale value after it is repaired.Some insureds have sought to recover this reduction in market or resale value.This loss in value is called

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The loss in value that a car may experience after it is repaired following an accident is called diminution. This reduction in market or resale value can occur even if the repairs were done correctly and the car is now fully functional again. Gap coverage refers to insurance that covers the gap between the actual cash value of a car and the amount owed on a loan or lease in the event of a total loss. Betterment refers to improvements made to a car during repairs that increase its value, which the car owner may be responsible for paying for. Subrogation refers to the legal process of an insurance company pursuing reimbursement from a third party who is responsible for a loss that the insurance company has already paid out for.

A Car Damaged in an Auto Accident May Have Reduced