How to claim diminished value

Who can claim, and from whom

From the other driver's insurer (third party). The normal route, and the one most states support. The other driver was at fault, their liability insurer paid for the repair, and you ask that insurer for the loss in market value the repair did not fix.

From your own insurer (first party). This depends on your policy and your state. Some allow it, many do not, and in several the answer turns on policy wording. Do not assume either way.

If you were at fault, there is generally nothing to claim. If you signed a full release, it is usually closed. If the car is leased, the lessor owns the claim.

All of this is state-dependent. Your state page has the rule for the state where the accident happened — not the one you live in.

The six steps you take

1. Finish the repair and collect the paperwork. You need the final invoice with every supplement, showing what was replaced and what was repaired. The claim is about what is left after a correct repair, so it comes afterwards.
2. Check your state's rule and your deadline. Your state page says whether the claim is recognised, whether your own policy can be used, and the filing period.
3. Get your number, and be able to show where it came from. An amount with no method behind it is the most common reason a request goes nowhere. Start here, free.
4. Write to the existing claim. Use the reference on the paperwork you already received, say what you are asking for and why, and attach the report and the evidence. Never just phone: a call leaves no record.
5. Send it, keep proof, and ask for a date. Our letter template asks for a reply within 21 days. Keep a copy, the date and the method you sent it by.
6. Answer whatever comes back, in writing. The three likely answers are below.

What evidence matters, and why

Insurers discount a number they cannot check. Each item makes part of your figure checkable:

• The final repair invoice, with supplements. It shows the size and kind of the repair, which drives the loss, and reveals structural work a summary hides.
• A vehicle history report (Carfax or AutoCheck). The record causes the loss, so proof it exists is proof the loss exists.
• A written dealer or trade-in offer. The strongest single document you can get: the market answering directly.
• Photos of the damage before the repair and the car after it. They make severity concrete.
• Local listings for the same model, with and without an accident on record. The comparison the formula skips.
• The police report and the claim reference. They tie your file to theirs.

Send it all in one package, with a covering letter listing the enclosures.

What the insurer usually answers

This is the pattern in our own sample corpus of claim correspondence, not a statement about any named company. No outcome can be predicted.

1. A formula figure. Usually a short calculation, often called 17c: ten percent of the pre-accident value as a ceiling, then a damage multiplier, then a mileage multiplier that reaches zero above 100,000 miles. It tends to land low, and nothing in it looks at what buyers actually pay. See the 17c formula page.

2. A request for documentation. The answer asks for the invoice, the history report, a dealer offer, or how you reached your figure, before any number is discussed.

3. A denial. Common grounds: the repair was completed and paid, the file shows no loss, or the state's law does not support the claim for a repaired vehicle.

What to do at each of those answers

At a formula figure: reply in writing and compare the two methods, not the two numbers. Name what the formula ignored — your actual repair, your market, your mileage band — and put your own figure beside it with its evidence. This is where the report earns its price.

At a documentation request: send exactly what was asked for, in one package, and repeat your figure in the covering letter. The filing period keeps running.

At a denial: ask in writing for the specific reason and the evidence it rests on. If the reason is that the repair was completed, point to how your state describes the loss: value before the accident against value after the repair. If it still does not move, two routes stay open — a complaint to your state's insurance regulator, linked on your state page, and small claims court below. A complaint does not replace your claim or pause your deadline.

Deadlines

Every state sets its own filing period for property damage. It is a court deadline, not the insurer's: it runs while you exchange letters, and once it passes a court can dismiss the case however good the evidence is.

We print no number here, because the only correct one is your state's. Your state page carries it, and the calculator turns it into a real date.

Small claims court is your own option

If the insurer will not move, you can sue the at-fault driver in small claims court. That is something you do, not something we do. Each state page lists that state's limit; forms, fees and hearing dates come from the court, and nobody can say how a judge will rule. For a court-ready opinion or legal advice, a licensed appraiser or an attorney in your state may be more appropriate than a self-help report.