Filing diminished value claims by state is a strategic move for individuals who have experienced a significant decrease in the value of their vehicle and deserve compensation for the reduced market value of the vehicle. Filing diminished value claims is particularly crucial if you plan to sell or trade in your vehicle in the future, as it allows you to protect your investment and maximize your financial recovery.
A diminished value claim is a request for compensation that a vehicle owner files to recover the loss in their car’s market value after it has been in an accident, even after it has been repaired. When a vehicle is involved in an accident, its history is often recorded in databases like CARFAX, which can lower its appeal to potential buyers or dealerships, regardless of how well the repairs were done. This reduction in market value is known as “diminished value.”
There are three different types of diminished value when we’re talking about diminished value claims by state:
Diminished value claims by state are typically filed with the at-fault driver’s insurance company (i.e., a third-party claim), though some policies allow filing through your own insurer (i.e., a first-party claim). The purpose of this claim is to bridge the financial gap between what the vehicle was worth before the accident and what it is worth after repairs. These diminished value claims by state are especially important for individuals planning to sell or trade in their vehicle, as they help protect the owner’s financial investment and ensure fair compensation for the loss in market value.
| STATE | LAWS RELATED TO DIMINISHED VALUE CLAIMS BY STATE | SOURCE |
|---|---|---|
| Alabama | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | Section 482-1-125-.08 |
| Alaska | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | |
| Arizona | Diminished value of your vehicle is recoverable in third-party cases only. Can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | Ariz. Admin. Code § 20-6-801 |
| Arkansas | Diminished value is recoverable in third-party claims. It is also recoverable against your own uninsured motorist coverage in the case of a hit-and-run, and in at-fault diminished value claims. Minimum liability coverage is required and the statute of limitations to file a claim is 3 years from the date of the accident. | Arkansas Code § 27-53-401 |
| California | Diminished value is recoverable by both a third-party who’s at fault and by your own policy’s underinsured motorist coverage. The statute of limitations is 3 years from the date of the accident. | Section 16020 |
| Colorado | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | Senate Bill 23-015 |
| Connecticut | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | 2007-R-0011 |
| Delaware | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | |
| District of Columbia | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance. | |
| Florida | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 4 years from the time of the accident. | Florida Statute Section 626.9743 |
| Georgia | Diminished value is recoverable by both a third-party who’s at fault and by your own policy’s underinsured motorist coverage. The statute of limitations is 4 years from the date of the accident. | O.C.G.A. 33-4-6 and O.C.G.A 33-4-7 |
| Hawaii | Hawaii will allow for the recovery of diminished value as a third-party claim if you can prove the loss in resale value due to an accident not your fault; however, most insurance policies will exclude first-party diminished value claims. | Chapter 431:10C |
| Idaho | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 3 years from the time of the accident. | Section 41: 1329 |
| Illinois | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 5 years from the date of the accident. | (215 ILCS 5/) Illinois Insurance Code |
| Indiana | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 2 years from the date of the accident. | § 34-51-2-19 |
| Iowa | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. The statute of limitations is 5 years from the time of the accident. | Iowa Code section 668 |
| Kansas | Diminished value of your vehicle is recoverable in third-party cases only, but Kansas law does not clearly state the payment. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | Kansas Insurance Dept. |
| Kentucky | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | HB 206 (BR 943) |
| Louisiana | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 1 year from the date of the accident. | (R.S.) 9:2800.17 |
| Maine | Maine does not have a specific law that addresses the payment of diminished value for a vehicle involved in an accident. However, diminished value of your vehicle is recoverable in some third-party cases only. You can only possibly recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 6 years from the time of the accident. | State of Maine-Diminished Value |
| Maryland | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 3 years from the date of the accident. | Maryland Code, Ann. Ins. § 19-509 |
| Massachusetts | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 3 years from the time of the accident. | 211 CMR 133.00 |
| Michigan | Michigan law DOES NOT require insurance companies to pay for diminished value, but you may still be able to recover up to $1,000 from your insurance company under the state’s ‘no fault mini-torte’ statute. The statute of limitations is 3 years from the date of the accident. | MCLA 500.3135(3)(e) |
| Minnesota | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies ,and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 6 years from the time of the accident. | Section 72A.201 |
| Mississippi | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 3 years from the date of the accident. | Chapter 50 Damages 5027 |
| Missouri | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 5 years from the time of the accident. | Section 407.2060 |
| Montana | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | Montana 33-23-202 |
| Nebraska | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, or a surety bond or property bond and the statute of limitations is 4 years from the time of the accident. | Nebraska Code 2-714 |
| Nevada | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 3 years from the time of the accident. | Chapter 485 |
| New Hampshire | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. There is NO mandatory insurance law, and the statute of limitations is 3 years from the time of the accident. | Section III-43-page 18 |
| New Jersey | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 6 years from the date of the accident. | Title 11-Section 3-Chapter 10 |
| New Mexico | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 4 years from the date of the accident. | Section 57-12-10 & 59A-16-20 |
| New York | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 3 years from the time of the accident. | OGC Opinion No. 06-11-22 |
| North Carolina | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 3 years from the date of the accident. | Statute GS 20-279.21 |
| North Dakota | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 6 years from the time of the accident. | |
| Ohio | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 2 years from the date of the accident. | Rule 3901-1-54 |
| Oklahoma | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | Title 15-§15-140.5 |
| Oregon | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 6 years from the date of the accident. | |
| Pennsylvania | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 2 years from the time of the accident. | Title 75-Chapter 17 |
| Rhode Island | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 10 years from the date of the accident. | § 27-9.1-4(25) |
| South Carolina | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 3 years from the date of the accident. | Title 56-Chapter 9 |
| South Dakota | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must show proof of financial responsibility, and the statute of limitations is 6 years from the time of the accident. | Codified Law 58-12 |
| Tennessee | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. All drivers must show proof of financial responsibility and the statute of limitations is 3 years from the time of the accident. | Tennessee HB1737 |
| Texas | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. All drivers must show proof of financial responsibility, and the statute of limitations is 2 years from the time of the accident. | |
| Utah | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required, and the statute of limitations to file a claim is 3 years from the date of the accident. | |
| Vermont | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 3 years from the date of the accident. | Bulletin 164 |
| Virginia | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 5 years from the date of the accident. | Virginia code 46.2-1600 |
| Washington | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required or a liability bond for at least $60,000 and the statute of limitations to file a claim is 5 years from the date of the accident. | WAC 284-30-391 |
| West Virginia | Diminished value is recoverable in third-party cases and through your own uninsured motorist coverage. Minimum liability coverage is required and the statute of limitations to file a claim is 2 years from the date of the accident. | West Virginia Code 46A-6A-4 |
| Wisconsin | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must show proof of financial responsibility, and the statute of limitations is 6 years from the time of the accident. | |
| Wyoming | Diminished value of your vehicle is recoverable in third-party cases only. You can only recover from third-party at fault insurance companies and you cannot make a claim under your own uninsured motorist insurance. All drivers must carry minimum liability insurance, and the statute of limitations is 4 years from the time of the accident. | Title 1-1-135 |
Filing diminished value claims by state is a strategic move for individuals who have experienced a significant decrease in the value of their vehicle due to an accident. While repairs can restore the mechanical functionality of a car, they often fail to address the loss in market value that occurs because of the vehicle’s accident history. By filing diminished value claims by state, you can seek compensation for the difference between the pre-accident value of your vehicle and its diminished value after repairs.
Whether you were involved in a car, truck or motorcycle accident and your vehicle lost value as a result of that accident, we might be able to help. Call Thompson Law and let us help with your diminished value claim no matter the state you reside.
In a diminished value claim, the responsible party’s insurance company typically covers the compensation for the diminished value of your vehicle. If another driver is at fault for the accident, their insurance company is responsible for paying the claim. For any diminished value claims by state, it is important to file the claim with the at-fault driver’s insurance company and provide evidence supporting the diminished value of your vehicle.
However, in some cases, your own insurance policy may also provide coverage for diminished value claims by state, depending on the terms and conditions of your policy. It is advisable to consult with your insurance provider to understand the coverage options available to you and to navigate the claims process effectively.
In either case, the goal is to receive the maximum compensation for your vehicle’s diminished value and ensure that you are not left bearing the financial burden of someone else’s negligence. Overall, diminished value claims by state can help hold responsible parties accountable for their actions and safeguard your financial interests.
Yes, there are statutes of limitations for filing diminished value claims by state. The statute of limitations is the time limit within which a claim must be filed after an accident. The specific statute of limitations varies depending on the jurisdiction and the type of claim involved.
Typically, the statute of limitations is years from the date of the accident, but in some states the number of years can range from 1-10 years. Louisiana is the only state with a one-year statute of limitations, while Rhode Island is the only state that allows a ten-year statute of limitations for filing your diminished value claims.
Consult with a legal professional or review the laws in your specific area to understand the applicable time limit for filing diminished value claims by state. Failing to file within the allotted time could result in the claim being barred and the inability to recover compensation for the diminished value of your vehicle. By not filing a diminished value claims by state means you lose fair market value when you go to sell your vehicle.
Proving diminished value claims by state requires gathering relevant evidence to support your claim. Here are some key steps to help you establish and substantiate your diminished value:
By following these steps and assembling a comprehensive body of evidence, you can bolster your case and effectively prove the diminished value of your claim by state, increasing your chances of a successful claim.
Given the complexity and variation of these laws around diminished value claims by state, consulting with an accident attorney or a diminished value specialist is advisable to ensure you meet all necessary deadlines and protect your rights. Contact Thompson Law today for a FREE CONSULTATION.
Thompson Law receives an attorney fee and you pay no legal fees as our client unless we pay you. Thompson Law has 350 years of combined experience in legal representation and has won over $1.8 billion dollars in cash settlements for our clients. We master the art of managing client cases with empathy, compassion, respect and, of course, prodigious skill. Contact us today for a free, risk-free consultation to discuss your accident and your options.
State law limits the time you have to file a claim after an auto accident. If you have been injured in an accident, call now to get the help you need.
