Diminished Value Claim—What You Need to Know

Auto accidents are a common occurrence on the road. While most drivers try to avoid them, accidents still happen.

In the aftermath of an accident, it’s important to know your rights and what steps you need to take. Filing a diminished value claim is one such step. In general, reduced value is a term describing the loss in value of a vehicle after it has been in an accident.

In addition, even if the accident was not your fault, you may still be able to get compensated for this loss. To learn more about diminished value, we encourage you to keep reading.

What Is a Diminished Value Claim?

A policyholder files this claim with their insurance company to recover the loss in value of their vehicle after it has been damaged in an accident.

The loss amount is typically based on the difference between the pre-accident value of the car, its current value, and the repair cost.

To succeed in such a claim, the policyholder must prove that their vehicle has lost value due to the accident. This can be difficult to do, so it is important to consult with an experienced attorney before filing a claim.

How to File a Diminished Value Claim

If you believe that your car has suffered from diminished value, you may be able to file a claim with your insurance company. So, you’ll need to gather evidence of the diminished value, such as appraisals before and after the accident.

You’ll also need to show that the accident wasn’t your fault and you have a valid insurance policy. Once you have all this information, you can contact your insurance company to start the claims process.

Types of Diminished Value Claims

There are three types of these claims: inherent, repair-related, and immediate.

Inherent Diminished Value

This is the most accepted and common form of car accident diminished value. It occurs when there are permanent damages to a vehicle after an accident, even if adequately repaired.

Repair-related diminished value occurs when poor workmanship or the use of aftermarket parts decreases the resale value of a vehicle. A diminished claim value calculator suggests this form of diminished value means the car cannot be restored to its initial condition.

Immediate Diminished Value

The immediate diminished value represents the drop in resale value that occurs immediately after a vehicle is damaged in an accident and before it is repaired.

Since insurance companies typically cover the cost of repairs right away, people rarely use immediate diminished value when filing a claim.

Companies That Offer Diminished Value Claim

Many insurance companies don’t cover this type of loss, which means you could be the one holding the bill. However, some companies specialize in diminishing value claims.

These companies will typically review your car’s repair history and compare it to similar models to determine the amount of money you’ve lost. So, if you’re considering pursuing diminishing value claims, do your research, and choose a reputable company.

GEICO Diminished Value Claim

After an accident, GEICO checks who was at fault. If it’s the other party, GEICO puts a Payment Recovery Examiner. Its role is to ensure that another driver or their insurance company covers the costs for the car-related damages.

The Payment Recovery Examiner also notifies the other party that you seek reimbursement. The usual period for payment recovery is around six months.

State Farm Diminished Value Claim

State Farm commits to helping its customers recover from accident-related damages. So, if you were involved in an accident and incurred damages, you should first notify State Farm. That way, a representative can begin the claims process.

To get an estimate of damages, you can use a Select Service shop or the company’s mobile app’s virtual estimator. The company will send you a check, pay the shop, or directly deposit money into your account.

Remember that the recovery process can vary in length depending on the claim. However, it could take up to one year or longer.

Progressive Diminished Value Claim

Through Progressive’s subrogation process, the company attempts to regain money it paid for a claim from the at-fault driver’s insurer. If Progressive subrogation is successful, the policyholder will get a refund for some or all their deductible.

The time subrogation takes varies by state and incident. Therefore, Progressive doesn’t disclose how long the process typically takes.

However, the quicker Progressive can collect information related to the accident and submit a demand to the at-fault driver’s insurance company, the sooner the subrogation process will be completed.

By understanding how Progressive’s subrogation process works, policyholders can be better prepared for the potential reimbursement of their deductible.

Allstate Diminished Value Claim

Subrogation is Allstate’s term for seeking compensation from the at-fault driver’s insurance provider. This process can also go by “payment recovery.”

Allstate’s subrogation process typically takes a few months to complete. However, the length may vary depending on the claim.

It generally applies to car accidents that involve two or more drivers. When subrogation is successful, Allstate may be able to recover the money it paid for a claim. That includes the policyholder’s deductible.

USAA Diminished Value Claim

USAA’s policy on subrogation doesn’t disclose how long the process takes, as it can vary depending on several factors. If you have suffered a loss, you can seek direct payment from the at-fault person or their insurer.

However, if USAA has already paid you for your loss (minus your deductible), it can recover its losses through subrogation. Therefore, it is vital to clarify to the other party that no release you sign includes USAA’s claim.

When you take part in an accident, USAA cannot file a claim against the at-fault driver until they have acquired a legal interest through payment to you under the insurance policy terms. You may be able to get all or part of your deductible back.

Diminished Value Claim Calculator by State

Many car insurance companies do not account for diminished value when settling claims. Consequently, they leave a car owner to foot the bill. However, a few states have enacted laws requiring insurance companies to reimburse car owners for diminished value.

As a result, if you live in one of these states and have been in an accident, use a diminishing value calculator. It will estimate the amount of compensation you are owed.

Diminished Value Claim: California

In California, you have three years from the date of the accident if you want to file a lawsuit against the at-fault driver to receive diminishing value claims.

In addition, diminished value damages can only be recovered from the party who damaged your car and are not typically recovered from collision coverage. They are also restricted to the car’s fair market value before the accident minus the repair costs.

Let’s mention that California had the highest average car repair cost in 2019—$414.24.

Diminished Value Claim: Florida

The statute of limitations for diminishing value claims is four years in Florida. This means you have four years from the date of the accident to file a claim.

You should take several steps to file successful diminishing value claims in Florida. First, you should contact the other driver’s insurance company and ask about their diminished value process and coverage.

Then, you should consult a reputable source to determine your vehicle’s original value. Also, have an appraisal done by a professional. Finally, you should contact an attorney to discuss your claim.

Diminished Value Claim: Maryland

If you live in Maryland, you’re in luck—the state is very “diminishing value claims friendly.” This means you don’t need auto insurance to make a claim.

However, there are still some restrictions. For example, you only have up to three years to make your claim, and you must not be the at-fault party.

But if you meet these criteria, filing a claim in Maryland could help you get compensated for your losses.

Diminished Value Claim: Georgia

If there’s damage to your car after an accident, you may be able to file diminishing value claims in Georgia. You will need to estimate your repair costs and submit a claim to the insurance company.

You will also need to know the value of your car when you purchase it. Each state has different laws regarding the time frame for filing various claims. For example, the statute of limitations for filing diminishing value claims in Georgia is four years.

Diminished Value Claim: Washington

In the state of Washington, you may be able to recover it from the other driver’s insurance company or under your own policy’s uninsured motorist coverage.

The statute of limitations for filing a claim for diminished value is three years from the date of the accident. So, if you have an accident, don’t wait to repair your car—make sure to file a claim for diminished value. Your wallet will thank you.

Diminished Value Claim: Texas

In Texas, the statute of limitations on these claims is two years. Moreover, the state has uninsured motorist insurance for diminished value.

However, there are some limitations on who can submit a claim and how much value can be claimed. For example, you cannot make a diminished value claim in case you were the party at-fault in an auto accident or something else and not a collision caused the car damage.

Also, you have to prove that your car lost value. In other words, simply having an accident or sustaining damage to your car doesn’t mean you are automatically entitled to such a claim.

Diminished Value Claim: Virginia

If you’re involved in a car accident in Virginia, you may be able to file diminishing value claims to receive compensation for the loss in the resale value of your vehicle.

To do so, the accident must have occurred within the Virginia statute of limitations. It generally provides that motorists have three years from the date of the accident to sue the at-fault driver or their insurance carrier.

Note that these claims can be complex, so it’s essential to consult with an experienced attorney to see if you have a valid claim.

Diminished Value Claim: Arizona

There are a few things to keep in mind regarding diminishing value claims in Arizona. For one, the statute of limitations for these types of claims is only two years. Additionally, you need to provide evidence showing the full extent of the loss to file a successful claim.

These claims can be handled as a stand-alone property damage claim or a part of a personal injury claim. However, it’s important to note that personal auto insurance rarely covers diminished value.

Diminished Value Claim: New York

If you want to file diminishing value claims against the at-fault party’s insurance company in the state of New York, you have three years from the date of the accident to do so.

However, you cannot do so if you want to file diminishing value claims under your own policy’s uninsured motorist coverage. This is because this type of coverage doesn’t cover diminishing value claims.

Colorado Diminished Value Claim

If you are insured in Colorado and another person’s negligence causes damages to your car, you can file diminishing value claims against that person. You may also file a collision coverage claim under your personal auto insurance policy.

The statute of limitations for filing such claims in Colorado is two years from the date of the accident. Therefore, if you were found at fault for the accident or the damage was caused by something other than the accident, you would not be able to file a claim.

Diminished Value Claim: NC

In North Carolina, you have three years from the date of an accident to file diminishing value claims. After that, you can file a claim with the at-fault party’s insurance company or under your own policy’s uninsured motorist coverage.

To determine the amount of loss in value your car has suffered, you will need to obtain a professional appraisal. The appraisal should include a before-and-after value of your vehicle and an estimate of the cost to repair any physical damage.

Once you have determined the value of your claim, you can begin negotiating with the insurance company for a fair settlement.

Diminished Value Claim: Illinois

You may be able to recover diminished value damages in Illinois if the accident wasn’t your fault and you file a claim within five years of the accident. The other driver’s insurance company would be responsible for paying any diminished value damages.

If the driver who caused the accident doesn’t have insurance, you may be able to make a claim under your own policy’s uninsured motorist coverage. However, it’s important to note that you can’t get diminished value damages in Illinois if the cause of the accident is other than a collision.

Diminished Value Claim: Ohio

In Ohio, if you want to file diminishing value claims after a car accident, you’ll need to act quickly and be able to prove who was at fault. You have two years from the date of the accident to file your claim.

To start the process, you’ll need to contact the at-fault driver’s insurance company and find out how their claims process works.

It’s important to note that insurance companies will only accept such claims if you weren’t at fault for the accident. If you were responsible for the accident, they wouldn’t accept your claim.

Diminished Value Claim: Pennsylvania

You have up to two years to make diminishing value claims in Pennsylvania. Additionally, Pennsylvania doesn’t recognize uninsured motorist claims.

The burden of proving damages always falls on the plaintiff. That makes convincing a jury difficult when trying to verify that your car has lost value even after it has been repaired.

Still, if you find yourself in this situation, it’s important to understand the legal landscape to make the best possible case for yourself.

Diminished Value Claim: New Jersey

In New Jersey, you have up to six years to make diminishing value claims. Your uninsured motorist coverage protects you in situations like these, so check your policy documents to see if you are covered.

If you’re not at fault for the accident, you should pursue such a claim—you may be surprised at how much your car’s worth has diminished.

Diminished Value Claim: Alabama

You may be able to file diminishing value claims in Alabama if there are damages to your vehicle after an accident that was not your fault. However, there are a few exceptions.

For example, if the damage was due to something other than the collision or you are an uninsured motorist, you will not be able to file a claim.

The statute of limitations for these claims in Alabama is six years from the date of the accident. So, if you’ve had an accident, it’s important to act quickly if you want to file a claim.

Diminished Value Claim: Massachusetts

In Massachusetts, you may be entitled to receive the diminished value of your vehicle if it is damaged in an auto accident. The statute of limitations for such claims is three years. Moreover, this state has no uninsured motorist coverage for diminished value.

You cannot submit a claim for diminished value if you were at fault in the accident or the damage was caused by something other than a collision.

Diminished Value Claim: Missouri

In the state of Missouri, you can file diminishing value claims up to five years after the date of your car accident. Moreover, it doesn’t have uninsured motorist coverage for diminished value.

Then again, it is important to note that you must have auto insurance to qualify for this claim. In addition, you can only file a claim if you were not at fault for the accident.

Diminished Value Claim: Indiana

If you’re in an accident in Indiana, you may be entitled to diminishing value claims if you file within six years of the accident. Indiana also recognizes claims filed by uninsured drivers.

But it’s important to note that you can’t be the driver who caused the accident. In fact, the state won’t recognize your claim if you were at fault. So, if you’re involved in an accident in Indiana, be sure to understand your rights and know what type of claim you can file.

Diminished Value Claim: South Carolina

The statute of limitations for filing diminishing value claims in South Carolina is three years from the date of the accident. This means that if you wait longer than three years, you will be barred from filing a claim.

You can file such a claim with the at-fault driver’s insurance company. If that driver is uninsured, you may also be able to file diminishing value claims with your own insurance company.

Also, South Carolina has uninsured motorist insurance for diminished value. If the at-fault driver was also not insured, your uninsured motorist coverage could potentially cover diminishing value claims.

Diminished Value Claim: Oklahoma

If there are damages to your car after an accident in the state of Oklahoma, you can file diminishing value claims. To do so, you must meet the following requirements:

you must be an insured motorist
the accident must have occurred within the last two years
you cannot be the at-fault party

If you consider filing these claims, it is advisable to consult with an experienced attorney in Oklahoma. That way, you can discuss your options and increase your chances of success.

Diminished Value Claim: Oregon

If you’re involved in a car accident in Oregon, you may be entitled to file diminishing value claims. Furthermore, if you want to file a successful claim, there are a few things you need to know.

First, you’ll need to act within the statute of limitations. In Oregon, this is six years from the date of the accident. Second, you can file diminishing value claims with the at-fault party’s insurance company.

Finally, if your car is insured, you may be able to file a claim under your own policy’s uninsured motorist coverage.

Diminished Value Claim: Kentucky

In Kentucky, motorists who have had an accident may be able to file a claim for diminished value.

To file such a claim, the incident must have occurred within the past five years, and the person filing the claim must be an insured motorist. In addition, the person filing the claim must not be the at-fault party from the incident.

Diminished Value Claim: Louisiana

Louisiana law stipulates that diminishing value claims can only be filed within one year of the date of the accident.

For your case to be considered valid:

your vehicle must have sustained damage but be repairable
someone else’s negligence must have caused the accident
you must be able to prove that your vehicle’s reduced market value is a direct result of the accident damage

If your case meets all these criteria, you may be eligible to file successful diminishing value claims in Louisiana.

Diminished Value Claim: Nevada

In the state of Nevada, you may be eligible to file diminishing value claims. However, there are some restrictions on who can file such a claim.

For example, if the damage to your vehicle was caused by something other than a collision, or if you are the at-fault party in the crash, you will not be eligible to file a claim.

Additionally, under state law, you have just three years from the date your vehicle was damaged to file such a claim. Therefore, if you believe you may be eligible to file a claim, you must act quickly and not miss the deadline.

Diminished Value Claim: Utah

If your car is damaged in an accident that wasn’t your fault in Utah, you may be able to get compensated for the diminished value of your vehicle. In Utah, the statute of limitations for filing diminishing value claims is three years from the date of the accident.

However, if the other driver was uninsured, you may still be able to file a diminished value claim under your uninsured motorist coverage.

It’s important to note that you cannot submit such a claim:

you were at fault for the accident
the damage happened due to something other than a collision

All in all, if you think you can get compensation for the diminished value of your car, it’s important to act quickly. Moreover, consult with an experienced attorney.

Diminishing Value Claim Summary

Diminishing value claims is a way to compensate for the decrease in your car’s value after an accident. If you’ve been in a car accident, contact your insurance company and determine whether you’re eligible for such a claim.

We’ve talked about diminishing value claims and their types, how to file them, and provided you with a detailed section on a diminished value calculator by state, together with a few companies that offer such claims.

So, even though diminishing value claims can be a complex process, our article has hopefully demystified all the steps you need to take.

Keep in mind that if you decide to go through with diminishing value claims, use a calculator to estimate the compensation you may be owed.