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State law · NY
Recovery of diminished value in New York is limited. Appellate courts apply a 'lesser of' rule: repair cost or the before-and-after drop in value, whichever is less. If repairs fully restored the car, reduced resale value from its accident history generally is not recoverable. Narrow exceptions exist, for example a collector car that had gained value. No controlling ruling was found on claims against your own insurer.
Claim against the at-fault driver
Limited
Claim against your own insurer
Unsettled
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
New York law
Third-party claim
Limited
Under Johnson v. Scholz and PJI 2:311, damages are the lesser of repair cost or the before-and-after drop in value. The Second Department (Parkoff, 2013) and Fourth Department (Angielczyk, 2015) held that when repairs fully restored the car, lower resale value from its accident history is not counted. Franklin Corp. (2011) allowed diminution evidence for an appreciating collector car. Repairs that do not fully restore the car may be treated differently.
Authority: Parkoff v. Stavsky, 109 A.D.3d 646 (2d Dep't 2013); Angielczyk v. Lipka, 132 A.D.3d 1380 (4th Dep't 2015); Franklin Corp. v. Prahler, 91 A.D.3d 49 (4th Dep't 2011)
First-party claim
Unsettled
No New York appellate decision or Department of Financial Services rule was found requiring collision coverage to pay diminished value. Given the courts' tort rule and typical repair-or-pay policy wording, recovery from your own insurer appears unlikely, but it depends on the policy.
Case law
New York Appellate Division, Second Department · 2013
109 A.D.3d 646 (2d Dep't 2013)
Affirmed dismissal of a claim for lower resale value (Carfax history) after the owner was fully paid for repairs; where repairs fully restore the vehicle, diminution in resale value is not taken into account.
New York Appellate Division, Fourth Department · 2015
132 A.D.3d 1380 (4th Dep't 2015)
Small-claims denial of diminished value for a 1996 Jaguar affirmed; Franklin Corp. applies only where the vehicle appreciated in value, otherwise the Johnson v. Scholz lesser-of rule governs.
New York Appellate Division, Fourth Department · 2011
91 A.D.3d 49 (4th Dep't 2011)
Owner of a collector car that had appreciated in value was entitled to jury instructions permitting recovery of diminution in value rather than only repair cost.
Civil Court of the City of New York · 2016
52 Misc. 3d 878, 2016 NY Slip Op 26191 (Civ. Ct. City of N.Y. 2016)
Trial-level small-claims court declined to dismiss a post-repair diminished-value claim outright and scheduled further expert testimony; it did not award diminished value.
Status: treatment unclear: Trial court, not binding; tension with Parkoff.
Civil Court of the City of New York · 2012
37 Misc. 3d 834 (Civ. Ct. Kings County 2012)
Addressed whether a plaintiff could recover the balance of an auto loan after the property-damage claim was paid; it mentions the general 'diminished value rule' but is not a post-repair diminished-value case.
Status: treatment unclear
N.Y. CPLR 214(4): Three-year limitation for injury to property
An action to recover damages for an injury to property must be commenced within three years.
Researched September 30, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in NY
We serve New York 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.
