After a collision, most folks jump through all the necessary hoops to get their car fixed through insurance. Once repairs are complete, everyone moves on. However, there’s a quiet car insurance coverage that could provide additional cash…and many policyholders aren’t even aware of it.

Vehicle diminished value

Did you know that after a car wreck, your repaired vehicle might not be worth as much as before the crash? As such, some auto insurers pay policyholders cash to fill the depreciation gap. This is done via a diminished value claim.

The use of non-original equipment parts and other factors, like repaired versus replaced components, can decrease a car’s market value. Moreover, the appearance of an accident on a vehicle history might also reduce resale value.

If your car is worth, say, $2,000 less today than it was before a covered collision, the insurance company will process a diminished value claim and settle on a payout with you, ideally up to the $2,000 depreciation.

Many drivers haven’t ever heard of this coverage simply because it’s rarely advertised, highlighted, or explained to policyholders or claimants.

Keep in mind that not all states allow these claims. Check your state before starting the process.

To file a diminished value claim, you’ll need to present your case to the insurance company. In most of these claims, the claimant is responsible for presenting sufficient information to confirm diminished value. If you don’t do this pre-work, your claim could turn into a lengthy back-and-forth or even get denied.

First, obtain a neutral, expert appraisal of the vehicle’s condition and market value. The third-party appraiser can also asses the car’s value before accident damages. If there’s a significant gap, consider proceeding with the claim.

After you prep your case, call the insurance company responsible for handling the original collision claim. State that you’d like to file a diminished value claim. The company should have a standard claim process and guide you through the steps.

If you have trouble navigating the diminished value claim process like some Redditers have, speak to a claims manager. Next, you can file a complaint with your state’s insurance department. If all else fails, you might consider legal action. Contact an attorney familiar with diminished value claims to assess the likelihood of winning a case and whether the time and costs would be worth taking the company to court.