OUR FIRM IS NO LONGER ACCEPTING DIMINISHED VALUE CASES
We are providing the following information as a resource only.
What Is a Diminished Value Claim:
- After a vehicle is repaired from an accident, it is worth less than a comparable car with no accident history.
- That loss in value is what the law allows you to recover.
- The goal: help you understand the process so you can ideally resolve it yourself without hiring an attorney.
Key Steps:
- Get a diminished value expert report
- Required in Arizona, recommended in CA and CO.
- Must be a real appraiser (not a template report).
- Should review repair estimates, photos, and be willing to testify if needed.
- Typical cost: $250–$750.
- Check the insurance company’s response
- A small offer ($250–$500) is still positive—means they acknowledge some loss or at least want you to go away.
- A zero-dollar denial is harder and requires deeper analysis.
- Evaluate whether pursuing the claim makes financial sense
- Many DV claims are too small to justify attorney fees + costs.
- Usually only worthwhile if the diminished value is $10,000+.
- Put both insurance companies on notice
- If you are having your insurance company repair your vehicle, notify them (in writing) that you are not consenting to allow them to go after the at fault drivers insurance company to get their money back until you have been compensated accordingly.
- Notify the at fault drivers insurance company that you anticipate filing a diminished value claim and that you won’t be prepared to resolve your property claim until that has been considered.
Legal Costs:
- Expert reports (see range above)
- Filing fees ($200–$400+)
- Process servers
- Depositions
- Expert testimony
- Lawsuits can cost $2,000–$6,000+ in total.
Major Risk People Don’t Realize:
- The worst outcome isn’t just losing.
- If you lose in court, you may owe:
- Your own costs
- Defense/insurance company’s costs (often thousands).
When It Likely Doesn’t Make Sense:
- Older vehicles with a naturally lower value.
- Low-dollar diminished value (e.g., $3,000–$7,000).
- Vehicles with extensive prior accidents.
- Leased vehicles — the lessor typically owns the claim.
Special Situations:
- Leased vehicles: you usually cannot pursue DV unless the lessor assigns rights to you.
- Selling your vehicle: notify the at-fault insurer first, provide opportunity to inspect so they can’t claim you destroyed evidence.
- Repairs must be complete before getting a DV report.
- Total losses: you cannot claim diminished value on a totaled vehicle.
Overall Guidance:
- Most people should attempt to resolve diminished value directly with the insurance company using an expert report.
- Hiring an attorney is only recommended for large, fully denied, or complex DV claims.
- Recommend a cost-benefit analysis to avoid spending more than you can recover.