Diminution in value is the loss of value in an automobile after it has been wrecked and repaired.  Very simply, it’s the decline in fair market value attributed to a vehicle having been wrecked and then repaired.  In general, an unwrecked automobile will be worth more than one that has been wrecked and repaired.  That difference is the diminution in value.  In this course, we will talk about diminished value claims in insurance.  Is the industry required to pay these losses?  If the auto is not actually sold, and the diminution realized, is there a loss?  These and many other questions will be answered.

• Define and describe diminished value/diminution in value.
• Distinguish between first-party and third-party claims, and, how each treat diminished value losses.
• Describe the controversy surrounding diminished value losses, and, opine about how you feel those losses should be handled.