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State law · MN

Minnesota diminished value claims

Generally yes against the at-fault driver: Minnesota courts measure vehicle damage by lost market value and have said an owner may recover diminished value after repairs plus the repair costs. Minnesota no-fault does not remove property-damage claims. Whether your own collision coverage pays diminished value is unsettled and depends on the policy. Claimants more at fault than the other driver recover nothing.

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  • Claim against the at-fault driver

    Allowed by case law

  • Claim against your own insurer

    Unsettled

  • Time limit to sue for property damage

    6 years

Reviewed by Monica Fisher, Owner, Licensed Auto Appraiser and Court Expert Witness — appraisal perspective, not legal advice

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Minnesota law

What Minnesota law says about diminished value

Third-party claim

Against the at-fault driver’s insurer

Allowed by case law

The Minnesota Supreme Court (1950) recognized that an owner may recover a chattel's diminished market value after repairs, plus reasonable repair expenses and loss of use. The Court of Appeals (1985) upheld using the before-and-after value measure for a damaged vehicle. These decisions are older, and no modern appellate ruling specific to post-repair diminished value was found. Recovery is reduced by the claimant's fault and barred if it exceeds the defendant's.

Authority: Kopischke v. Chicago, St. Paul, Minneapolis & Omaha Railway Co., 230 Minn. 23, 40 N.W.2d 834 (1950); Waseca Sand & Gravel, Inc. v. Olson, 379 N.W.2d 592 (Minn. Ct. App. 1985); Minn. Stat. § 604.01, subd. 1

First-party claim

Against your own insurer

Unsettled

No published Minnesota appellate decision deciding whether collision coverage includes diminished value was located. In Carolla v. American Family (2003, unpublished), a trial court had found coverage, but the Court of Appeals expressly did not decide the coverage question and reversed the injunction. The answer depends on the policy wording.

Authority: Carolla v. American Family Mutual Insurance Co., No. A03-0021 (Minn. Ct. App. Sept. 9, 2003) (unpublished)

Case law

Key Minnesota court decisions

Kopischke v. Chicago, St. Paul, Minneapolis & Omaha Railway Co.

Minnesota Supreme Court · 1950

230 Minn. 23, 40 N.W.2d 834 (1950)

The measure of damages to a vehicle from a collision is the diminution in value. The court stated that a plaintiff may recover the diminished market value of a chattel after repairs plus reasonable repair expenses and loss of use, and allowed loss-of-use damages alongside diminution.

Status: treatment unclear: This was a damaged truck. The case is old but was not found overruled.

Read the decision

Waseca Sand & Gravel, Inc. v. Olson

Minnesota Court of Appeals · 1985

379 N.W.2d 592 (Minn. Ct. App. 1985)

Rejected the argument that repair cost was the only correct measure. A plaintiff who elected the difference in fair market value before and after a collision could be awarded it.

Status: treatment unclear

Read the decision

Carolla v. American Family Mutual Insurance Co.

Minnesota Court of Appeals · 2003

No. A03-0021 (Minn. Ct. App. Sept. 9, 2003) (unpublished)

Affirmed that the district court, not no-fault arbitration, could decide a diminished-value coverage dispute, and reversed the injunction and bond. It did not decide whether the policy covers diminished value.

Status: treatment unclear: Unpublished opinions are not precedential under Minn. Stat. § 480A.08, subd. 3. The legacy page cited that statute as if it were diminished-value law.

Read the decision

Statutes and rules

  • Minn. Stat. § 541.05, subd. 1(1), (4): Six-year limitations

    Six years for actions for injuring personal property, and for contract actions with no other prescribed limit.

  • Minn. Stat. § 604.01, subd. 1: Comparative fault

    Contributory fault does not bar recovery if it was not greater than the fault of the person sued. Damages are reduced in proportion to the claimant's fault.

  • Minn. Stat. § 65B.49, subd. 3(1): Residual liability minimums

    Requires at least $30,000 per person and $60,000 per accident for bodily injury, and $10,000 for property damage.

Deadlines and minimum coverage

Time limit for a property-damage lawsuit
6 years (Minn. Stat. § 541.05, subd. 1(4)). Six years for injury to personal property. Contract claims against your own insurer are also generally six years (subd. 1(1)), but policy terms such as appraisal clauses may apply.
Minimum liability insurance
$30,000 per person / $60,000 per accident bodily injury; $10,000 property damage. The at-fault driver’s property-damage limit can cap what their insurer pays.
If your claim stalls
You can file a complaint with the Minnesota Department of Commerce.
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Appraisals for Minnesota vehicles

We serve Minnesota 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.

  1. 1

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    Tell us about the vehicle and the Minnesota claim.
  2. 2

    Send photos and repair records

    Final invoice, photos, and the insurer’s claim details.
  3. 3

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Other states

Rules in other states

Have a Minnesota diminished value claim?

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