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State law · CO
Colorado courts use the difference in a vehicle's value before and after the damage, so lost value can be sought from the at-fault driver if proven. Under your own policy it depends on the wording: a Colorado appellate court read 'like kind and quality' repair language to cover lost value, but a federal appeals court enforced an express exclusion. Car-accident property damage suits generally must be filed within three years.
Claim against the at-fault driver
Allowed by case law
Claim against your own insurer
Depends on your policy
Time limit to sue for property damage
3 years
Insurance regulator
Reviewed by Monica Fisher, Owner, Licensed Auto Appraiser and Court Expert Witness — appraisal perspective, not legal advice
Last reviewed
Colorado law
Third-party claim
Allowed by case law
The Colorado Supreme Court approved a before-and-after market value measure for a car that was substantially destroyed (Trujillo v. Wilson, 1948). No Colorado appellate decision awarding lost value for a fully repaired car in a tort suit was found, so the claim rests on that general rule and must be proven, typically by appraisal.
Authority: Trujillo v. Wilson, 117 Colo. 430, 189 P.2d 147 (1948)
First-party claim
Depends on your policy
In Hyden v. Farmers (2000), the Court of Appeals held that a policy promising repair with 'like kind and quality' was ambiguous and could require restoring market value, not just function. In Lovell v. State Farm (2006), the federal Tenth Circuit held Colorado's No-Fault Act does not require DV coverage and enforced an express exclusion. Many current policies include such exclusions.
Authority: Hyden v. Farmers Insurance Exchange, 20 P.3d 1222 (Colo. App. 2000); Lovell v. State Farm Mutual Automobile Insurance Co., 466 F.3d 893 (10th Cir. 2006)
Case law
Supreme Court of Colorado · 1948
117 Colo. 430, 189 P.2d 147 (1948)
For a car substantially destroyed in a collision, the measure of damage is the difference between its value immediately before and immediately after, plus reasonable expense to preserve or restore it.
Status: treatment unclear: Old case about a wrecked (not repaired) car; no citator was run.
Colorado Court of Appeals · 2000
20 P.3d 1222 (Colo. App. 2000)
Policy language to repair or replace with 'like kind and quality' was ambiguous and construed for the insured: repairs leaving market value substantially lower than before the accident may not satisfy it. Summary judgment for the insurer on breach of contract was reversed.
Status: treatment unclear: Turns on that policy's wording; a policy with an express DV exclusion is treated differently (see Lovell).
U.S. Court of Appeals for the Tenth Circuit · 2006
466 F.3d 893 (10th Cir. 2006)
Colorado's No-Fault Act does not require insurers to pay diminished value under collision coverage; State Farm's endorsement excluding any reduction in value was valid and enforceable.
Status: treatment unclear: Federal court predicting Colorado law; persuasive, not binding on Colorado state courts.
C.R.S. § 13-80-101(1)(n): Three-year limitation for motor vehicle torts
All tort actions for bodily injury or property damage arising out of the use or operation of a motor vehicle must be commenced within three years after the cause of action accrues. Contract actions (1)(a) are also three years.
C.R.S. § 10-4-620: Required minimum coverage
Requires liability coverage of at least $25,000 per person and $50,000 per accident for bodily injury and $15,000 for property damage.
Researched September 30, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in CO
We serve Colorado from your repair order, photos and records, the same way we serve every state. A typical diminished-value appraisal is $250–$350, typically 24–48 hours after all required information is received.
Other states
The claim review is free: we look at your situation and tell you whether an appraisal is likely to help. The appraisal itself is a paid report. We help from start to finish, including a custom demand letter, and our support staff is a phone call away throughout the process.
