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Filing a diminished value claim with any insurer
The steps are the same whichever company is involved. Work out whose policy you are claiming on, get the claim number and the assigned adjuster, finish repairs, document the loss in value, and send a written demand with the evidence. What changes from one insurer to the next is mostly where the demand is sent.
By the Autoloss team · Reviewed by Monica Fisher · Published
Step 1: Work out whose policy you are claiming on
There are two kinds of diminished value claim, and they follow different rules.
- Third-party claim. Another driver was at fault and you are claiming against that driver, whose insurer handles and pays the claim. Your right comes from your state’s law on property damage, not from the wording of that driver’s policy.
- First-party claim. You are claiming on your own collision, comprehensive or uninsured motorist coverage. Your right comes from your policy, and courts in different states have read similar policy wording in different ways.
First-party vs third-party diminished value explains the difference, and diminished value laws by state shows where your state stands. Rules vary by state, so check yours before you spend money on the claim.
Step 2: Get the claim number and the adjuster
A diminished value demand normally goes to the adjuster already handling the property damage, under the existing claim number. If no claim is open yet, report it through the insurer’s official claims page or the number on the claim paperwork. How to contact an auto insurer about a claim covers how to find the right contact and why a number copied from a list is a poor source.
Step 3: Finish repairs and gather the records
Loss in value after repair is measured once the repair is complete. Collect:
- The final repair invoice and any supplements
- The insurer’s estimate
- Photos of the damage before repair, if you have them
- The vehicle’s mileage, options and service history
- The police report or other record of who was at fault
Step 4: Put a supported figure on the loss
An insurer may calculate its own figure, sometimes with a formula. How the 17c formula works and insurer offer vs independent appraisal explain those methods. An independent appraisal is evidence of the loss based on your vehicle, its repair records and comparable vehicles. A typical Autoloss diminished value appraisal costs $250–$350 and is typically 24–48 hours after all required information is received. The claim review that comes first is free. An appraisal is evidence, not a promise of payment.
Step 5: Send a written demand
Send the adjuster a short letter that states the claim number, the amount claimed and the basis for it, with the appraisal and repair records attached. Keep a copy and a record of the date it was sent. What a diminished value demand letter should include has the full list. Every Autoloss diminished value appraisal comes with a custom demand letter.
Step 6: If you and the insurer do not agree
Ask for the reason in writing, and ask what the insurer’s own figure is based on. Do not sign a release until the diminished value part of the claim is resolved, because a release usually ends the claim. Watch the filing deadline in your state; property damage deadlines by state lists them. After your appraisal sets out the options, and how to file an auto insurance complaint covers the regulator route. Autoloss is not a law firm or a public adjuster and does not negotiate with insurers. We answer the insurer’s questions about how the report was prepared; you, or your attorney, handle the claim.
What does differ by insurer
Two things: the address the claim goes to, and the court decisions that involved that company’s policies. Those are covered in the insurer guides, for example State Farm, Farmers, Progressive and GEICO. Autoloss is independent and is not affiliated with or endorsed by any insurer; company names are used only to identify them.
Common questions
Do I file a diminished value claim separately from the repair claim?
Usually it is part of the same property damage claim, under the same claim number, and is raised in writing with the adjuster once repairs are complete. Practice can vary by state and insurer, so ask the adjuster how they want it submitted.
Does it matter which insurance company is involved?
The steps are the same. What matters most is your state’s law and whether you are claiming against the at-fault driver or on your own policy. The insurer guides list the court decisions that involved each company.
Does Autoloss file the claim or negotiate for me?
No. Autoloss prepares the independent appraisal and a custom demand letter and answers the insurer’s questions about how the report was prepared. You, or your attorney, handle the claim.
Keep reading
More from the insurer guide
When a claim stalls
Why insurers deny or reduce diminished value claims
Six reasons adjusters give, what each can mean, and the evidence that answers it.
When a claim stalls
Insurer not responding or delaying? What the rules require
Response deadlines in three states, who enforces them, and what to send.
When a claim stalls
What counts as insurance bad faith, and what doesn’t
The duty to policyholders, the limits for third parties, and two rejected claims.
Rulings in five or more states
Diminished value claims with State Farm
Rulings from nine states, from Georgia’s Mabry decision onward.
Not sure whether an appraisal will help?
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.