Diminished Value: The Forgotten Claim After an Accident
A vehicle with an accident history fetches a lower price when sold – even after a flawless repair. The other party's insurer must compensate this "diminished value" (merkantiler Minderwert). In practice, without legal assistance it is often not settled at all, or settled too low.
Why does this claim exist?
The used-car market penalises accident vehicles: buyers pay less, or do not buy at all. This financial loss arises regardless of whether you actually sell the vehicle – it becomes due immediately upon the accident.
How is the diminished value calculated?
Your expert states the diminished value in the appraisal report. Common calculation methods include Ruhkopf/Sahm, the Hamburg model and the Market Relevance and Factor Method (MFM). Influencing factors: the vehicle's age, mileage, extent of the damage (structural parts?), pre-existing damage and marketability.
Even for older vehicles?
Yes. The rigid threshold once common ("no diminished value from 5 years or 100,000 km onward") is outdated. The BGH looks at the individual case and the conditions of the used-car market – well-maintained older vehicles can certainly have a compensable diminished value.
What to do if the insurer reduces the amount?
Reductions are often justified in blanket terms ("too old", "mileage too high"). Do not let this go unchallenged: with the appraisal report from your expert, the claim can as a rule be enforced.
Key Court Decisions
- BGH, judgment of 23 November 2004 – VI ZR 357/03
No rigid age or mileage threshold: whether a diminished value exists depends on the market conditions in the individual case – older vehicles with high mileage can also be affected.
Had an accident? We will review your claims.
We review your claims and handle the entire settlement process with the insurer – after a no-fault accident, the other party's liability insurer as a rule bears the legal fees.
This article is for general information only and does not replace individual legal advice. As of: July 2026. All decisions cited are publicly accessible (including at bundesgerichtshof.de).