Inherent Diminished Value can best be described as the loss of market value of a vehicle, just because it has been involved in an accident. This is because you won’t find anyone who would pay the same amount of money for a car that has been in an accident, as for a car that hasn’t been in an accident. Even if the car is perfectly repaired, you still wouldn’t pay the same amount for a previous damaged car, as for a car without damage history.
The loss of market value occurs at the precise time of the accident. The loss in value can be measured as the difference between the value of the vehicle before the accident, and the value of the vehicle after the accident.