Kevin McCullough from Mazow and McCullough explains inherent diminished value. He talks about how this affects the valuation of damages after a vehicle collision.
IDV stands for inherent diminished value, and it’s the concept that a motor vehicle is worth less money after it’s been involved in an accident, even after it’s repaired.
If you were looking to purchase a vehicle and you narrowed your search down to two vehicles that were identical, except one had been in a prior accident and repaired and the other vehicle was accident free, you as a consumer would choose and purchase the vehicle that was accident free. Every consumer would do the same thing. Inherent diminished value recognizes that loss in value, and it recognizes the concept that that vehicle is worth less money on the open market.
If you’ve been involved in a collision where your car has suffered damage and it’s been repaired, you have suffered inherent diminished value damages and you are entitled to pursue those damages and be compensated in full for those damages.
