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Diminished Value Claims by State (2025)

August 11, 2025 | By Francis Injury: Car & Truck Accident Lawyers
Diminished Value Claims by State (2025)

Even after “perfect” repairs, an accident on your history can cut your car’s market price. This guide explains how diminished value (DV) works, what Texas drivers can claim, how timelines differ by state, and how to build a clean, persuasive claim file.

Diminished Value Claims by State

What is a Diminished Value claim?

Diminished value is the difference between your vehicle’s market value right before a crash and after it’s been repaired. Buyers (and dealers) discount cars with an accident on the record, which shows up in reports like CARFAX and directly affects price. Kelley Blue Book explains this simply, and it’s exactly what insurers evaluate when you ask to be made whole for the lost value.

Three types of diminished value

  • Inherent DV: Loss purely from the accident history, even with excellent repairs.
  • Repair-related DV: Loss caused by visible defects, poor workmanship, or non-OEM parts.
  • Immediate DV: Loss between pre-crash value and value before any repairs (rare; timing-specific).
Real-world example: A 3-year-old SUV worth $32,000 pre-crash sells for $28,400 after a recorded accident and quality repairs. The $3,600 gap is your potential diminished value claim.

How diminished value works in Texas

Texas allows third-party DV claims against the at-fault driver’s insurer. If you were not at fault, your claim generally seeks the value loss that remains after proper repairs. Insurers often apply a version of the “17c” approach (a formula insurers use to estimate DV) as a starting point—feel free to push back with stronger evidence if their offer is light. For an overview of filing steps, see Bankrate’s step-by-step DV filing guide.

Who pays?

Typically, the at-fault driver’s liability insurer. If liability is disputed or coverage is limited, talk to a lawyer about strategy. (Texas drivers: keep an eye on the statute of limitations for property damage claims and act promptly.)

How to build a persuasive DV claim file

  1. Confirm fault & coverage. Get the other driver’s insurer info and claim number. If fault is disputed, note why you disagree.
  2. Document repairs. Keep body-shop invoices, parts lists (OEM vs aftermarket), and photos before, during, and after repairs.
  3. Establish market value. Pull pre- and post-repair valuations and comps. Start with KBB, then gather dealer trade-in quotes to corroborate.
  4. Order a professional appraisal. A USPAP-compliant DV appraisal often moves adjusters off low offers.
  5. Calculate your ask. Insurers may float a “17c” figure; counter with your comps, appraisal, and any repair-related defects.
  6. Negotiate in writing. Keep a tidy paper trail. If the delta is large, consider escalation or counsel.
Pro tip: Pair one dealership trade-in quote with two private-party comps within 25 miles and 90 days for stronger local market evidence.

In Texas, timing matters — let us push your claim forward

Francis Injury builds DV files that insurers take seriously. We’ll review your documents, line up the right valuation evidence, and negotiate for the strongest possible result.

Frequently Asked Questions

Possibly. “Inherent” DV exists even after quality repairs because the accident is on record. Dealers and buyers discount for that history.

It depends on pre-crash value, damage severity, mileage, age, model desirability, and visible repair issues. Start with valuations (e.g., KBB overview) and consider a professional appraisal.

Usually the at-fault driver’s insurer (third-party claim). First-party DV depends on your policy and state. See Bankrate’s filing guide for a quick checklist.

Deadlines vary by state (often 2–4 years; some longer). File as soon as repairs are complete so evidence is fresh. Michigan is different due to its mini-tort rules and a $3,000 cap—see Michigan DIFS.

A third-party DV claim is against the other driver’s insurer, so it generally doesn’t affect your premiums. First-party impacts depend on your policy and claim history.

Sometimes. Strong photo sets, repair invoices, and multiple local comps can work. But a USPAP-compliant appraisal often closes the gap on low offers.

 

State-by-State Snapshot (Quick Reference)

Yes Policy-dependent Limited Varies
  • Alabama
    Third-party: Yes First-party: Policy-dependent
    Document repairs + comps; file promptly.
  • Alaska
    Third-party: Yes First-party: Policy-dependent
    Rural markets: collect local comps.
  • Arizona
    Third-party: Yes First-party: Policy-dependent
    Comparative fault can affect outcomes.
  • Arkansas
    Third-party: Yes First-party: Varies
    Hit-and-run scenarios often need UM proof.
  • California
    Third-party: Yes First-party: Policy-dependent
    Dealer quotes + appraisal strengthen claims.
  • Colorado
    Third-party: Yes First-party: Policy-dependent
    Get pre/post valuations + photo sets.
  • Connecticut
    Third-party: Yes First-party: Policy-dependent
    Strong documentation helps.
  • Delaware
    Third-party: Yes First-party: Policy-dependent
    Use local market comps.
  • Florida
    Third-party: Yes First-party: Policy-dependent
    Comparative negligence rules apply.
  • Georgia
    Third-party: Yes First-party: Varies
    Favorable precedent; appraisals help.
  • Hawaii
    Third-party: Yes First-party: Limited
    First-party often excluded by policy.
  • Idaho
    Third-party: Yes First-party: Policy-dependent
    Rural comps improve accuracy.
  • Illinois
    Third-party: Yes First-party: Varies
    Use dealer trade-in quotes + comps.
  • Indiana
    Third-party: Yes First-party: Varies
    Keep a clean paper trail.
  • Iowa
    Third-party: Yes First-party: Limited
    First-party depends on policy language.
  • Kansas
    Third-party: Yes First-party: Limited
    Outcomes can be fact-specific.
  • Kentucky
    Third-party: Yes First-party: Limited
    No-fault intersections may arise.
  • Louisiana
    Third-party: Yes First-party: Limited
    Shorter timelines historically—file fast.
  • Maine
    Third-party: Yes First-party: Limited
    Statutes don’t directly spell out DV; evidence matters.
  • Maryland
    Third-party: Yes First-party: Varies
    Contributory negligence issues possible.
  • Massachusetts
    Third-party: Yes First-party: Limited
    Policy terms control first-party options.
  • Michigan
    Third-party: Limited First-party: Limited
    Mini-tort system; recovery capped and narrow.
  • Minnesota
    Third-party: Yes First-party: Policy-dependent
    No-fault overlay; build clear valuation record.
  • Mississippi
    Third-party: Yes First-party: Varies
    Solid appraisal often key.
  • Missouri
    Third-party: Yes First-party: Limited
    Third-party DV typical; first-party varies.
  • Montana
    Third-party: Yes First-party: Limited
    Get rural market comps.
  • Nebraska
    Third-party: Varies First-party: Limited
    Check latest case law before filing.
  • Nevada
    Third-party: Yes First-party: Limited
    Comparative fault considerations.
  • New Hampshire
    Third-party: Yes First-party: Limited
    Financial responsibility rules apply.
  • New Jersey
    Third-party: Yes First-party: Varies
    Policy selection may matter.
  • New Mexico
    Third-party: Yes First-party: Varies
    Build with appraisals + comps.
  • New York
    Third-party: Yes First-party: Limited
    Third-party DV viable; document thoroughly.
  • North Carolina
    Third-party: Yes First-party: Varies
    Strong history for well-documented claims.
  • North Dakota
    Third-party: Yes First-party: Limited
    Evidence quality drives results.
  • Ohio
    Third-party: Yes First-party: Varies
    Negotiation common; appraisals help.
  • Oklahoma
    Third-party: Yes First-party: Limited
    Third-party DV typical.
  • Oregon
    Third-party: Yes First-party: Varies
    UM/UIM interplay possible—review policy.
  • Pennsylvania
    Third-party: Yes First-party: Limited
    Tort option matters; get comps.
  • Rhode Island
    Third-party: Yes First-party: Policy-dependent
    Historically longer filing window; verify current rules.
  • South Carolina
    Third-party: Yes First-party: Varies
    Third-party DV recognized.
  • South Dakota
    Third-party: Yes First-party: Limited
    Proof of financial responsibility applies.
  • Tennessee
    Third-party: Yes First-party: Varies
    Collect repair docs + valuations.
  • Texas
    Third-party: Yes First-party: Policy-dependent
    Francis Injury can build your DV file and negotiate your claim.
  • Utah
    Third-party: Yes First-party: Policy-dependent
    No-fault overlay; evidence is key.
  • Vermont
    Third-party: Yes First-party: Policy-dependent
    Use multiple local comps.
  • Virginia
    Third-party: Yes First-party: Varies
    Contributory negligence issues possible.
  • Washington
    Third-party: Yes First-party: Policy-dependent
    Longer property timelines historically; verify.
  • West Virginia
    Third-party: Yes First-party: Varies
    Third-party DV recognized.
  • Wisconsin
    Third-party: Yes First-party: Limited
    Document thoroughly; policy controls first-party.
  • Wyoming
    Third-party: Yes First-party: Limited
    Local market comps recommended.

Disclaimer: Orientation only (2025). Laws and policy terms change. For state-specific timelines and precedents, consult an attorney. Francis Injury can verify your state before filing.

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