State-by-State Guide to Diminished Value Claims (2025 Edition)

After a vehicle accident, even with quality repairs, your car will lose market value due to its accident history. This loss is called diminished value (DV). Understanding DV is crucial for vehicle owners seeking fair compensation. Don’t wait until you’re ready to sell or trade in your vehicle—statutes of limitations apply in every state (see below).

What is Diminished Value?

Diminished value refers to the reduction in a vehicle’s market value after it has been damaged and repaired. Even if repairs restore the vehicle to its pre-accident condition, the fact that it has a documented damage history can significantly reduce its resale value.

Types of Diminished Value

Inherent Diminished Value: Loss in value due to accident history, despite high-quality repairs.
Repair-Related Diminished Value: Loss resulting from substandard repairs or use of non-original parts.
Immediate Diminished Value: Loss in value immediately after the accident, before any repairs are made.

Why It Matters in 2025

In 2025, with vehicle history reports (Carfax, VINCheck, ISO) available to nearly every buyer, accident transparency has never been higher. Filing a DV claim can help you protect your vehicle’s full financial value.

How to File a Diminished Value Claim

Step-by-Step Process

Document the Incident: Gather police reports, photos, and repair estimates. Complete all repairs, including any supplements.
Obtain a Professional Appraisal: Secure an independent DV appraisal. DVAC provides expert, market-based reports and stays involved through settlement.
Submit the Claim: File with the at-fault insurer, providing all documents. Always communicate in writing.
Negotiate the Settlement: Respond to insurer objections with evidence and written responses. DVAC will support with expert advice.

Common Challenges

Insurer Disputes: Adjusters are incentivized to settle claims for as little as possible. Disputes are common without documentation.
Time Constraints: Every state has a deadline to file a DV claim. Filing your DV report before the deadline is essential.
Proof of Loss: Without a certified appraisal, proving the diminished value is extremely difficult.

The Role of Professional Appraisals

A professional DV appraisal provides a neutral, third-party valuation of loss. DVAC’s appraisals are recognized by insurers and courts, ensuring your claim is credible and accurate.

State-by-State Breakdown

Always verify the most current statutes in your state before filing.

Jump to Your State

State

Claim Type Allowed

Statute of Limitations

Alabama

Third-Party

2 Years

Alaska

Third-Party

6 Years

Arizona

Third-Party

2 Years

Arkansas

Third-Party

3 Years

California

Third-Party

3 Years

Colorado

Third-Party

3 Years

Connecticut

Third-Party

2 Years

Delaware

Third-Party

2 Years

Florida

Third-Party

4 Years

Georgia

First & Third-Party

4 Years

Hawaii

Third-Party

2 Years

Idaho

Third-Party

3 Years

Illinois

Third-Party

5 Years

Indiana

Third-Party

2 Years

Iowa

Third-Party

5 Years

Kansas

Third-Party

2 Years

Kentucky

Third-Party

2 Years

Louisiana

Third-Party

1 Years

Maine

Third-Party

6 Years

Maryland

Third-Party

3 Years

Massachusetts

Third-Party

3 Years

Michigan

Limited (Mini Tort)

N/A

Minnesota

Third-Party

6 Years

Mississippi

Third-Party

3 Years

Missouri

Third-Party

5 Years

Montana

Third-Party

2 Years

Nebraska

Not Allowed

4 Years

Nevada

Third-Party

3 Years

New Hampshire

Third-Party

3 Years

New Jersey

Third-Party

6 Years

New Mexico

Third-Party

4 Years

New York

Third-Party

3 Years

North Carolina

First & Third-Party

3 Years

North Dakota

Third-Party

6 Years

Oklahoma

Third-Party

2 Years

Oregon

Third-Party

6 Years

Pennsylvania

Third-Party

2 Years

Rhode Island

Third-Party

10 Years

South Carolina

Third-Party

3 Years

South Dakota

Third-Party

6 Years

Tennessee

Third-Party

3 Years

Texas

Third-Party

2 Years

Utah

Third-Party

3 Years

Vermont

Third-Party

3 Years

Virginia

Third-Party

5 Years

Washington

Third-Party

3 Years

West Virginia

Third-Party

2 Years

Wisconsin

Third-Party

6 Years

Wyoming

Third-Party

4 Years

Frequently Asked Questions

Can I file a Diminished Value claim if I was at fault?

In most cases, no. Diminished value claims are typically filed against the at-fault party’s insurer. However, Georgia is the only state that allows first-party diminished value claims under specific conditions.

Does Diminished Value apply to leased vehicles?

Diminished value claims for leased vehicles can be complex. Since the leasing company technically owns the vehicle, only they can file a Diminished Value claim. Lessees usually cannot file on their own behalf.

How is diminished value calculated?

DV is assessed based on a number of factors:

Pre-accident market value
Severity and type of damage
Vehicle age and mileage
Quality and completeness of repairs
Damage reporting in systems like Carfax, ISO, and VINCheck

DVAC combines this data with real-time market conditions to produce defensible, expert appraisals.

When should I file my claim?

You should file as soon as repairs are complete. Most states enforce a statute of limitations that starts from the date of the accident, not the date of repair. Filing earlier strengthens your claim and ensures you don’t miss the deadline.

What if the insurance company denies my claim?

Denials are common, especially when claims are unsupported by data. DVAC provides the documentation you need and can help you respond with compelling evidence, or prepare the case for small claims court if necessary.

DVAC's Role in Supporting Your Claim

For Attorneys, Repair Shops, and Advocates:

We invite legal professionals, consumer advocates, and collision repair experts to link to or share this guide. Accurate DV claims protect your clients and customers—use this as a trusted reference.

DVAC services include:

Expert Appraisals: Market-driven reports backed by real data
Claim Assistance: Step-by-step guidance until the claim is settled
State-Specific Knowledge: We understand DV laws in all 50 states
Expert Testimony: DVAC can testify in court to defend your appraisal report methodology

DVAC is your partner from start to finish.

Legal Disclaimer

DVAC is not a law firm and does not provide legal advice. This guide is for informational purposes only. Laws and regulations change; consult a qualified attorney or your state’s insurance department to verify legal details.

State-by-State Guide to Diminished Value Claims (2025 Edition)

What is Diminished Value?

Types of Diminished Value

Why It Matters in 2025

How to File a Diminished Value Claim

Step-by-Step Process

Common Challenges

The Role of Professional Appraisals

State-by-State Breakdown

State

Claim Type Allowed

Statute of Limitations

Frequently Asked Questions

DVAC's Role in Supporting Your Claim

For Attorneys, Repair Shops, and Advocates:

Legal Disclaimer

DVAC is not a law firm and does not provide legal advice. This guide is for informational purposes only. Laws and regulations change; consult a qualified attorney or your state’s insurance department to verify legal details.

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