What a diminished value demand letter should include

What the letter does

An adjuster handles many files. A phone call asking about “loss of value” is easy to set aside. A letter that names the claim, states a figure and encloses the evidence has to be answered, and it creates a dated record that you made the claim.

The seven things it should contain

1. Claim details. The insurer’s claim number, the name of its insured (the at-fault driver), the date of the accident and the adjuster’s name.
2. Your vehicle. Year, make, model, trim, VIN and mileage at the time of the accident.
3. What happened to the vehicle. A short, factual statement of the damage and the repair, with the repair shop and the final invoice total.
4. The claim. That the vehicle has lost market value because of the accident, and that you are claiming that loss from the at-fault party.
5. The amount. One specific figure, the same figure the appraisal reaches.
6. The enclosures. The appraisal report, the final repair invoice and photos, listed by name.
7. A request for a written response. Ask the adjuster to confirm receipt and to respond in writing by a stated date.

Tone and length

One page is usually enough. Keep it factual and polite. The appraisal carries the argument, so the letter does not need to repeat it. Do not guess at legal rules; if you want to cite your state’s law, check your state’s page or ask an attorney.

Mistakes that weaken the letter

• No figure. “Please compensate me for loss of value” invites a formula offer.
• A figure with nothing behind it. The amount should match attached evidence.
• A different figure from the appraisal. Adding to the appraised amount undercuts your own evidence.
• Sending it to the wrong insurer. Most claims go to the at-fault driver’s insurer. See first-party vs third-party claims.
• Threats. They rarely help and can be used against you later.
• Signing a release first. A release can end the claim before the letter is read.

How to send it

Email it to the adjuster with the claim number in the subject line, and consider mailing a copy with tracking. Keep copies of everything, and note the date. What tends to happen next is covered in what happens after your appraisal.

Who writes it

You can write it yourself, or an attorney can write it for you, which is worth considering on larger or disputed claims. Every Autoloss diminished value appraisal includes a custom demand letter written for your claim, ready to send with the report. You, or your attorney, send it and handle the claim.