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State law · MA
It is limited. The 2016 standard Massachusetts auto policy excludes 'decreased value' from the property damage it pays to others, so the at-fault driver's insurer generally will not pay. The at-fault driver may still be personally liable in tort, but only with individualized proof. Your own collision coverage does not pay diminished value under the standard policy.
Claim against the at-fault driver
Limited
Claim against your own insurer
Usually excluded by 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
Massachusetts law
Third-party claim
Limited
In 2021 the SJC held that Part 4 of the 2008 standard policy covered third-party inherent diminished value (McGilloway). In 2025 it held that the 2016 standard policy validly excludes it (Cubberley), noting the at-fault insured may remain personally liable in tort. Claimants cannot sue the insurer directly without first obtaining a judgment against the driver, and they must prove both that diminished value exists and how much.
Authority: Cubberley v. Commerce Insurance Co., SJC-13563 (Mass. Jan. 30, 2025); McGilloway v. Safety Insurance Co., 488 Mass. 610 (2021); M.G.L. c. 231, § 85
First-party claim
Usually excluded by policy
The SJC held that collision coverage (Part 7) of the standard policy does not cover inherent diminished value, because the policy never pays more than the cost to repair or replace. Policies on non-standard forms should be read individually.
Authority: Given v. Commerce Insurance Co., 440 Mass. 207 (2003)
Case law
Massachusetts Supreme Judicial Court · 2025
SJC-13563 (Mass. Jan. 30, 2025)
Part 4 of the 2016 standard policy excludes 'any decreased value or intangible loss' unless otherwise required by law, and McGilloway does not require coverage under that edition. The plaintiffs also lacked standing to sue the insurer without a final judgment against its insureds.
Massachusetts Supreme Judicial Court · 2021
488 Mass. 610 (2021)
Part 4 (property damage to others) of the 2008 standard policy covers third-party inherent diminished value claims, provided the claimant gives individualized proof that IDV exists and of its amount.
Status: superseded; see note: Not overruled, but limited to the 2008 edition by Cubberley. The McGilloway opinion itself could not be opened; its holding is taken from Cubberley's description.
Massachusetts Supreme Judicial Court · 2003
440 Mass. 207 (2003)
Collision coverage (Part 7) of the standard policy does not require the insurer to pay its own policyholder for inherent diminished value after paying for full repairs, because the policy caps payment at the cost to repair or replace.
M.G.L. c. 260, § 2A: Three-year limitation for tort actions
Actions of tort (including property damage) must be commenced within three years after the cause of action accrues.
M.G.L. c. 260, § 2: Six-year limitation for contract actions
Contract actions (other than for personal injury) must be commenced within six years. This may apply to claims against your own insurer, subject to policy terms.
M.G.L. c. 231, § 85: Comparative negligence
A claimant's negligence does not bar recovery if it was not greater than the total negligence of those sued. Damages are reduced by the claimant's share.
M.G.L. c. 90, §§ 34A, 34O (as amended by St. 2024, c. 275): Compulsory liability minimums
For policies issued or renewed on or after July 1, 2025: $25,000 per person and $50,000 per accident for bodily injury (§ 34A), and $30,000 for property damage (§ 34O).
Researched September 30, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in MA
We serve Massachusetts 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.
