The concept of diminished value occurs when you are in a car accident and the value of the car declines after the repair. You should always disclose any prior damage to potential buyers before you sell your car. The insurance companies hate the idea of bringing you “whole” when a car is fixed, but there is a tremendous amount of money at stake. The Dallas Morning News has reported that insurance companies are low-balling people throughout Texas. One man was offered $250 on an $11,000 repair. He took the company to court and received $3,500. State Farm has said that it does not believe in diminished value. There have been so many problems that diminished value consultants are now available to help you handle a stingy insurance company. Many insurance companies say that diminished value will raise rates, but this is actually false. If there is a raise, then it will be minimal. Don’t let your insurance company cheat you out of the money you deserve!