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State law · IN
In Indiana, you can seek diminished value from the at-fault driver. A 2020 appellate decision held that a vehicle's lost market value can be recovered even after full repairs, if you prove it with market evidence. Your own collision coverage generally does not pay it (Allgood, Indiana Supreme Court, 2005). The lawsuit deadline for vehicle damage is two years.
Claim against the at-fault driver
Allowed by case law
Claim against your own insurer
Usually excluded by policy
Time limit to sue for property damage
2 years
Insurance regulator
Reviewed by Monica Fisher, Owner, Licensed Auto Appraiser and Court Expert Witness — appraisal perspective, not legal advice
Last reviewed
Indiana law
Third-party claim
Allowed by case law
Indiana measures tort damage to personal property by the reduction in fair market value (Wiese-GMC v. Wells). In Shield Global Partners v. Forster (2020), the Court of Appeals reversed a ruling that denied diminished value because the truck had been successfully repaired. Loss in value can be proved with repair costs plus before-and-after market evidence. The Indiana Supreme Court in Allgood also noted that tort damages include diminution of value.
Authority: Shield Global Partners-G1, LLC v. Forster, No. 19A-CC-1100 (Ind. Ct. App. Feb. 19, 2020); Wiese-GMC, Inc. v. Wells, 626 N.E.2d 595 (Ind. Ct. App. 1993); Allgood v. Meridian Security Insurance Co., 836 N.E.2d 243 (Ind. 2005)
First-party claim
Usually excluded by policy
In Allgood, the Indiana Supreme Court held that a policy paying the lesser of actual cash value or the cost to repair or replace with like kind and quality does not cover loss in value after adequate repairs. In Dunn (2005), the same court held that uninsured-motorist coverage, which stands in for the at-fault driver's liability, did cover diminished value. That case was decided under Tennessee law.
Authority: Allgood v. Meridian Security Insurance Co., 836 N.E.2d 243 (Ind. 2005); Dunn v. Meridian Mutual Insurance Co., 836 N.E.2d 249 (Ind. 2005)
Case law
Indiana Supreme Court · 2005
836 N.E.2d 243 (Ind. 2005)
A policy limiting coverage to the lesser of actual cash value or the amount necessary to repair or replace with property of like kind and quality does not obligate the insurer to pay for diminution in value after adequate repairs. Tort doctrines on diminution do not govern the contract claim.
Indiana Supreme Court · 2005
836 N.E.2d 249 (Ind. 2005)
Uninsured motorist coverage covers the uninsured driver's liability to the insured; if the insurer repairs the car, it must also pay any diminished value, up to UM limits, without duplicating collision payments.
Status: treatment unclear: The insured was a Tennessee resident, and the court applied Tennessee law and the Tennessee UM statute. How it applies to an Indiana policy has not been confirmed.
Court of Appeals of Indiana · 2020
No. 19A-CC-1100 (Ind. Ct. App. Feb. 19, 2020)
The trial court erred in holding that diminished value was not recoverable because the truck had been successfully repaired; where repair does not restore pre-accident market value, the loss may be proved by repair cost plus before-and-after market value evidence. Reversed and remanded.
Court of Appeals of Indiana · 1993
626 N.E.2d 595 (Ind. Ct. App. 1993)
The fundamental measure of damages for personal property damaged but not destroyed is the reduction in fair market value caused by the tortfeasor; cost of repair is one way to measure it.
Ind. Code § 34-11-2-4: Two-year limitation: injury to person or personal property
An action for injury to personal property must be commenced within two years after the cause of action accrues.
Researched September 30, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in IN
We serve Indiana 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.
Allowed by case law. Indiana measures tort damage to personal property by the reduction in fair market value (Wiese-GMC v. Wells). In Shield Global Partners v. Forster (2020), the Court of Appeals reversed a ruling that denied diminished value because the truck had been successfully repaired. Loss in value can be proved with repair costs plus before-and-after market evidence. The Indiana Supreme Court in Allgood also noted that tort damages include diminution of value.
Usually excluded by policy. In Allgood, the Indiana Supreme Court held that a policy paying the lesser of actual cash value or the cost to repair or replace with like kind and quality does not cover loss in value after adequate repairs. In Dunn (2005), the same court held that uninsured-motorist coverage, which stands in for the at-fault driver's liability, did cover diminished value. That case was decided under Tennessee law.
Indiana generally allows 2 years to sue for vehicle property damage (Ind. Code § 34-11-2-4). Talking with the insurer does not pause the deadline, so check it early.
Put your dispute in writing and support it with evidence, such as an independent appraisal. If the insurer still does not respond, you can file a complaint with the Indiana Department of Insurance. Insurers, arbitrators and courts make their own decisions. An appraisal is evidence supporting your claim, not a promise of payment.
A typical diminished-value appraisal is $250–$350, typically 24–48 hours after all required information is received. 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.
Not normally. Our appraisers prepare the report from your repair order, photographs and records, the same way we serve every state.
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.
