Guide · Car claims
Diminished value claim in Israel
A repaired car can be worth less than the same car without an accident history. This guide explains when that loss may be claimed in Israel and how it is examined.
Adv. Sassi Lev
Insurance claims and property damage
What a diminished value claim in Israel means
A diminished value claim in Israel concerns the loss in a car's market value after an accident, even when the repair was done properly. In Hebrew this is called yeridat erech. A buyer who sees an accident in the car's history may offer less, and that difference may be treated separately from the cost of the repair itself.
Diminished value is a recognized head of damage in Israeli car claims in some circumstances. Whether it applies, and how much, depends on the policy, the vehicle, the damage and an assessor's opinion. It is not added automatically, so it is worth raising it when the claim is first examined.
Your own policy or the other driver's insurer
The route matters. If another driver caused the accident, the claim against that driver's insurer is a third-party property claim, and the loss you actually suffered is examined, which may include diminished value. Our page on third-party claims explains how such claims usually work.
If you claim from your own comprehensive policy, the answer depends on the policy wording. Some policies address diminished value and some limit it or set conditions. Reading the policy and its schedule before choosing a route can affect how the claim is assessed, so it helps to check this early.
- Who caused the accident, and whether that is disputed
- Which policies apply: your comprehensive policy, the other driver's policy, or both
- What the policy wording says about diminished value, if anything
How diminished value is assessed
Diminished value is usually assessed by an assessor (shamai). The assessment may take into account the vehicle's age and value, the parts that were damaged and the nature of the repair. Structural and cosmetic damage may be treated differently.
The insurer's assessor's report is a professional opinion, not a ruling. If the report gives no diminished value, or a figure that seems low, you may obtain your own assessor's report. Our guide on the public adjuster in Israel explains how an independent assessor appointed by the policyholder fits into a claim.
Documents that support the claim
A diminished value claim rests on documents. Collecting them while the repair is fresh is easier than reconstructing them months later.
- The assessor's report, including the list of damaged parts and the repair method
- Photos of the damage before the repair
- Repair invoices from the garage
- The vehicle license and details of the car's age and mileage
- Any letter or payment notice from the insurer
When the insurer refuses or pays less
If the insurer refuses to include diminished value, or pays a lower figure, ask for the reason in writing. A denial letter should state the reason and the policy clause it relies on. The reason can then be read against the policy and the assessment.
If the payment is lower than expected, compare it line by line with the assessment. Our guides on an underpaid insurance claim in Israel and on a car insurance claim lawyer in Israel explain what to check. Signing a release and discharge form usually closes the claim, including any diminished value element, so check it before you sign.
An insurer is generally expected to pay benefits that are not in dispute within 30 days. Where diminished value is disputed, the undisputed part is still generally expected within that period.
How we work with car owners in English
We represent policyholders only, in property insurance claims in Israel, and we work in English and remotely when needed. We read the policy, the assessor's report and the insurer's answer, and set out a clear next step. For an overview of how we handle property claims, see our guide to a property damage lawyer in Israel.
The limitation period for an insurance claim is generally three years from the insured event, though some policies and situations differ, so check the date early.
To start, send on WhatsApp the assessor's report, photos of the damage, the repair invoices and any letter from the insurer.
Questions people ask
Can I claim diminished value if the car was repaired properly?
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Possibly. Diminished value concerns the loss in market value that can remain even after a proper repair. Whether it can be claimed depends on the policy, the vehicle and the assessor's opinion.
Is diminished value included in my own comprehensive policy?
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It depends on the policy wording. Policies differ: some address it, and some limit it or set conditions, so the policy and its schedule should be checked.
The assessor's report gives no diminished value. What can I do?
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Ask for the reason in writing and consider an independent assessor's report. The two professional opinions can then be compared with the policy.
Have a document from the insurer?
A denial letter, a payment notice or an assessor's report. Send it on WhatsApp and we will come back to you with the next step.
Sending material does not create an attorney–client relationship.