Insurance claims glossary
Clear definitions for the terms that come up when you are filing a diminished value claim or disputing a total loss settlement — with links to free tools when you are ready to act.
Core concepts
- Actual Cash Value (ACV)
What your vehicle was worth immediately before the loss, accounting for age, mileage, condition, and market factors.
- Diminished Value
The loss in market value a vehicle retains after being repaired following an accident.
- Pre-Loss Value
Your vehicle's market value immediately before the accident — the baseline for DV and ACV calculations.
- Total Loss
When an insurer decides repair costs exceed a threshold relative to the vehicle's value, so they pay ACV instead of fixing the car.
Claims process
- Demand Letter
A formal written request to an insurer stating your claim, evidence, and the amount you are seeking.
- First-Party Claim
A claim filed with your own insurance company under your policy coverage.
- Insurance Adjuster
The insurance company representative who evaluates your claim and negotiates settlement offers.
- Third-Party Claim
A claim filed against the at-fault driver's insurance rather than your own policy.
Evidence & documentation
- Market Comparables
Similar vehicles sold or listed in your area used to establish pre-loss value or prove diminished value.
- Panel Replacement
When a body shop replaces a vehicle panel rather than repairing it — a stronger severity signal than minor repair work.
- Repair Estimate
A written breakdown from a body shop listing parts, labor, and repair operations needed after an accident.
- Vehicle History Report
Records like Carfax or AutoCheck that show accident history and reduce buyer willingness to pay full market price.