When to get a diminished value appraisal

The usual order of events

1. The accident and the repair claim. Liability is sorted out and the vehicle goes to the shop.
2. Repairs are finished. You receive the final invoice, which lists every part and operation, including any supplements added after the first estimate.
3. The appraisal. With the final invoice and photos, the loss in market value can be measured.
4. The demand. You send the report and demand letter to the at-fault driver’s insurer.

Why after repairs

The first estimate is often incomplete. Shops find hidden damage once the vehicle is apart, and the insurer approves supplements. An appraisal built on the first estimate can understate what was actually repaired, especially structural work, which affects value most. The final invoice settles the question.

If repairs are delayed and a deadline is close, an appraisal can start from the repair estimate. Tell us about the timing during the claim review so we can advise which record to use.

Before you sign a release

A release can close your whole property-damage claim, including diminished value, even if the paperwork was presented as covering the repair or a rental car. If you have already been sent one, read it before signing and check what it covers. More on this in what happens after your appraisal.

Before the deadline

Each state sets a time limit to file a lawsuit for property damage, commonly between two and six years. Negotiating with an adjuster does not extend it. An appraisal ordered in the last weeks leaves little room for the insurer to respond before you have to decide about filing. Check your state on the property damage deadlines page.

Before you sell or trade the vehicle

You generally do not have to sell the vehicle to claim diminished value. If you plan to sell or trade it, order the appraisal first. Photos and details are easy to gather while you still have the vehicle, and much harder afterwards.

Situations that change the timing

• The vehicle will not be repaired. If you are selling it damaged, the question is its value as damaged, which is a different valuation. Say so at the start.
• The vehicle is a total loss. Diminished value does not apply. You need a total loss appraisal.
• The insurer has already made an offer. You can still order an appraisal, as long as you have not signed a release.
• The repair looks wrong. Raise it with the shop and the insurer first. See the three types of diminished value.