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State law · NM
New Mexico owners can pursue loss of value from an at-fault driver. The state's jury instructions allow repair costs plus any drop in value after repair, capped at the before-and-after drop in value. Your own insurer usually does not have to pay: the Court of Appeals held a standard Farmers collision policy did not cover diminished value after adequate repairs.
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
4 years
Insurance regulator
Reviewed by Monica Fisher, Owner, Licensed Auto Appraiser and Court Expert Witness — appraisal perspective, not legal advice
Last reviewed
New Mexico law
Third-party claim
Allowed by case law
Under UJI 13-1815, as described by the Court of Appeals in Hubbard (1998), the owner may recover the lesser of (1) reasonable repair costs plus any post-repair decrease in market value, or (2) the difference in market value before and after the damage. The owner must prove the post-repair loss.
Authority: Hubbard v. Albuquerque Truck Center, Ltd., 1998-NMCA-058, 125 N.M. 153, 958 P.2d 111
First-party claim
Usually excluded by policy
In Davis v. Farmers (2006), the Court of Appeals held a policy letting the insurer pay, repair, or replace unambiguously did not cover diminished market value on top of adequate repairs. The court stressed the answer depends on the actual policy wording, so a differently worded policy could produce a different result.
Authority: Davis v. Farmers Insurance Co. of Arizona, 2006-NMCA-099, 140 N.M. 249, 142 P.3d 17
Case law
New Mexico Court of Appeals · 2006
2006-NMCA-099, 140 N.M. 249, 142 P.3d 17
The insured's collision policy unambiguously did not provide coverage for diminished market value after the truck was adequately repaired; the insurer did not breach good faith by not explaining this or by choosing the cheapest option.
New Mexico Court of Appeals · 1998
1998-NMCA-058, 125 N.M. 153, 958 P.2d 111
Describes New Mexico's personal-property damage instructions: UJI 13-1815 allows the lesser of repair costs plus post-repair depreciation, or the before-and-after drop in market value.
NMSA 1978, § 37-1-4: Four-year limitation
Actions for injuries to property, conversion, unwritten contracts and other unspecified actions must be brought within four years.
NMSA 1978, § 37-1-3(A): Six-year limitation for written contracts
Actions founded on a written contract, such as an insurance policy, must be brought within six years, unless a valid policy clause shortens it.
Researched September 30, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in NM
We serve New Mexico 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.
