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Guide

How to file a diminished value claim

If someone else hit your car, you can usually claim not just the repair but the value the car lost because it now has an accident history. Here is how the claim works, what evidence wins it and how to answer a low 17c offer.

Checked against official sources November 5, 20267 cited sourcesHow we calculate

When you can claim

  • Another driver was at fault: diminished value is a recognized part of your property damage claim against them and their liability insurer. Florida's regulator notes courts allow it in these third-party claims; Maryland's calls it a valid component of the liability claim.
  • You were at fault: your own collision coverage usually does not pay it. The Texas Department of Insurance says insurers are not obligated to pay first-party diminished value when the car is fully repaired.
  • Georgia: after the Georgia Supreme Court's 2001 Mabry decision, the state insurance commissioner directed insurers to assess and pay diminished value on first-party physical damage claims.
  • Uninsured or underinsured driver: some states, such as Texas, allow it under your uninsured motorist property damage coverage.

Evidence

  • The final repair invoice, with the parts replaced and any frame or structural work.
  • Photos of the damage before repair.
  • The vehicle history report showing the accident.
  • An independent diminished value appraisal, or written trade-in offers from two or three dealers that know the history, compared with the pre-accident value.

Step by step

  1. Report the claim to the at-fault driver's insurer and get the car repaired.
  2. Collect the evidence above and estimate the loss with the calculator.
  3. Send a written demand: the pre-accident value, the post-repair value, the difference, and the documents.
  4. Negotiate. If the insurer refuses or lowballs, consider small claims court, where diminished value claims are often filed without a lawyer.
  5. Do not sign a property damage release that waives diminished value before it is resolved.

Answering a 17c offer

The 17c formula multiplies 10% of the car's value by two modifiers the insurer chooses. Point out that it is the insurer's own method, not a legal standard: the Georgia Supreme Court did not adopt any formula, and the loss in your state is measured by the car's market value before and after. Your appraisal or dealer offers are the answer to a formula number.

Deadlines

A diminished value claim against the at-fault driver is a property damage claim. The most common property damage statute of limitations is 3 years (18 states); see every state in the statute of limitations table. Insurers may also expect the claim to be raised promptly, so assert it as soon as the repair is finished.

Frequently asked questions

How much is a diminished value claim worth?

It depends on the car and the damage. A newer, low-mileage car with structural or frame repairs loses the most. Insurers using the 17c formula cap the loss at 10% of the car's value before modifiers; an independent market appraisal is usually higher. Try the diminished value calculator.

Is it worth filing a diminished value claim?

For a newer or higher-value car with significant repairs, usually yes, especially if you plan to sell or trade it in soon. For an older, high-mileage car with cosmetic damage, the loss may be too small to justify an appraisal.

Do I need an appraisal for a diminished value claim?

You need proof of the loss. State regulators in Maryland and Washington say simply asking is not enough; an independent appraisal or written valuations from dealers that account for the accident history are the usual evidence.

Can I claim diminished value if the accident was my fault?

Generally not. Standard policies do not cover first-party diminished value in most states. Georgia is the main exception.

Sources

Checked November 5, 2026.

  1. Tiller v. State Farm, No. 1:12-CV-3432 (N.D. Ga. Feb. 5, 2013), order describing the 17c letter (govinfo)
  2. State Farm v. Mabry, 274 Ga. 498 (2001), Georgia Supreme Court opinion (archived copy)
  3. Georgia Insurance Commissioner Directive 01-P&C-1, diminution of value, first party claims (2001, archived)
  4. Texas Department of Insurance, Commissioner's Bulletin B-0027-00 on diminished value
  5. Florida Department of Financial Services, personal automobile insurance overview
  6. Maryland Insurance Administration, A Consumer Guide to Auto Insurance
  7. Washington Office of the Insurance Commissioner, filing an auto insurance claim