Quick Answer: You may have a diminished-value claim if your vehicle is worth less after accident repairs. Repair payments cover physical damage, while diminished value covers the remaining loss in market value. Your claim will depend on the vehicle, damage, repairs, evidence, and insurance policy.
What Is Diminished Value?
Diminished value is the difference between a vehicle’s value before an accident and its value after repairs. Buyers and dealerships may offer less for a vehicle with an accident history, even when the repairs were completed correctly. Diminished value usually applies to repaired vehicles. If a vehicle is declared a total loss, the main issue is normally its value before the accident.
Does Indiana Allow Diminished-Value Claims?
Indiana courts have recognized that repair costs may not cover the full loss when repairs fail to restore a vehicle’s previous market value. In Wiese-GMC, Inc. v. Wells, the Indiana Court of Appeals explained that vehicle damage may be measured by the difference between its value before and after the accident. When repairs do not restore the earlier value, evidence may include both repair costs and the value that remains lost. See Wiese-GMC, Inc. v. Wells, 626 N.E.2d 595 (Ind. Ct. App. 1993).
A vehicle owner must still prove that the loss exists and provide a reasonable estimate of its amount.
What Evidence Can Support the Claim?
Useful evidence may include repair estimates, the final repair bill, photographs, maintenance records, mileage, prior accident history, and a vehicle history report. An experienced independent vehicle appraiser can compare the vehicle’s pre-accident value with its value after repairs and explain the evidence used in the calculation.
Listings for similar vehicles may also help when they involve the same or similar year, make, model, mileage, trim level, and condition. A general statement that repaired vehicles are worth less may not prove a specific loss.
What Affects Diminished Value?
The amount may depend on the vehicle’s age, mileage, condition, accident history, type of damage, and repair quality. Major structural damage may affect value more than a small cosmetic repair. A newer, low-mileage vehicle with no earlier accidents may have a stronger claim than an older vehicle with high mileage or previous damage.
Online calculators may provide a rough estimate, but vehicle-specific evidence is usually more useful.
Does It Matter Which Insurer Handles the Claim?
Yes. A claim against the at-fault driver’s insurer is different from a claim under your own collision coverage. For a claim against the other driver’s insurer, you must provide evidence of fault and the loss in value. A claim with your own insurer depends on the terms and exclusions in your policy.
In Allgood v. Meridian Security Insurance Co., the Indiana Court of Appeals considered diminished value under an auto insurance policy. The court explained that the vehicle owner had to prove the loss and noted that a policy may exclude diminished-value coverage. See Allgood v. Meridian Security Insurance Co., 807 N.E.2d 131 (Ind. Ct. App. 2004).
When and How Should You Submit the Claim?
Diminished value is often easier to measure after repairs are complete. Save the original estimate, added repair estimates, final bill, photographs, vehicle records, and messages from the insurer. Submit the request in writing with the amount you are seeking and the evidence supporting it. If the insurer denies the claim or offers less, ask for a written explanation.
Claim, notice, and lawsuit deadlines may apply even while an insurer is reviewing the request. Do not sign a release until you understand whether it resolves only the repair payment or the entire property-damage claim, including diminished value.
Frequently Asked Questions
No. The vehicle’s age, mileage, previous history, damage, repairs, and current market value all affect whether a measurable loss remains.
Not necessarily. A sale may provide evidence, but an independent appraisal and comparable vehicle listings may also show the loss in value.
There is no single formula for every vehicle. An appraiser may compare the vehicle’s value before the accident with its value after repairs while considering its condition, mileage, history, damage, and local market.
It depends on the policy. Your collision coverage may limit or exclude diminished-value payments, so review the complete policy before submitting the claim.
Possibly, but review the settlement documents first. A broad property-damage release may also resolve the diminished-value claim.
Ask Whether Diminished Value May Be Part of Your Claim
The attorneys at Dennis, Wenger & Abrell can review your accident, repairs, insurance policy, and supporting records. DW&A has offices in Muncie and Carmel, Indiana. Contact DW&A to ask whether diminished value may be part of your Indiana car accident claim.
This article provides general information and is not legal advice. Reading it does not create an attorney-client relationship. Insurance coverage and available claims depend on the policy, evidence, and facts of each case.