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State law · TX
In Texas, an owner whose car was damaged by another driver can seek lost market value from that driver or their liability insurer; the Texas Department of Insurance says this can apply even after complete repairs. Under the standard Texas personal auto policy, your own insurer does not owe diminished value for a fully and adequately repaired car (Schaefer, 2003), though uninsured/underinsured motorist claims may differ.
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
2 years
Insurance regulator
Reviewed by Monica Fisher, Owner, Licensed Auto Appraiser and Court Expert Witness — appraisal perspective, not legal advice
Last reviewed
Texas law
Third-party claim
Allowed by case law
The Texas Supreme Court's default measure for partly damaged property is the market-value difference immediately before and after the injury, or reasonable repair cost, and it quoted the Restatement rule allowing 'due allowance' for value lost after repairs (J&D Towing, 2016). TDI Bulletin B-0027-00 says a liability insurer may owe a third party lost market value regardless of repair completeness. Proof is case-by-case.
Authority: J & D Towing, LLC v. American Alternative Insurance Corp., 478 S.W.3d 649 (Tex. 2016); American Manufacturers Mutual Insurance Co. v. Schaefer, 124 S.W.3d 154 (Tex. 2003); TDI Commissioner's Bulletin B-0027-00 (Apr. 6, 2000)
First-party claim
Usually excluded by policy
The Texas Supreme Court held the standard personal auto policy's collision/comprehensive coverage does not pay diminished value when the car is fully and adequately repaired. Where repairs are incomplete or inadequate, the result may differ. TDI says uninsured/underinsured motorist coverage may owe lost market value regardless of repair completeness.
Authority: American Manufacturers Mutual Insurance Co. v. Schaefer, 124 S.W.3d 154 (Tex. 2003); TDI Commissioner's Bulletin B-0027-00 (Apr. 6, 2000)
Case law
Supreme Court of Texas · 2003
124 S.W.3d 154 (Tex. 2003)
The Texas Standard Personal Auto Policy (Part D) does not require the insurer to pay diminished market value for a vehicle that has been fully and adequately repaired. The Court noted the tort market-value measure may apply under liability coverage.
Supreme Court of Texas · 2016
478 S.W.3d 649 (Tex. 2016)
An owner of totally destroyed personal property may recover loss-of-use damages. Restating Texas law for partly damaged property: default measure is before/after market-value difference, or reasonable repair cost; quoted Restatement § 928 allowing for value lost after repairs.
TDI Commissioner's Bulletin B-0027-00 (Apr. 6, 2000): First-party claims for diminished value
Insurers are not obligated to pay first-party diminished value when a car is completely repaired to pre-damage condition; they may owe third-party claimants, and UM/UIM claimants, lost market value regardless of repair completeness.
Tex. Civ. Prac. & Rem. Code § 16.003(a): Two-year limitations period
Suits for injury to the property of another must be brought within two years after the cause of action accrues.
Tex. Civ. Prac. & Rem. Code § 33.001: Proportionate responsibility
A claimant may not recover damages if their share of responsibility is greater than 50 percent; otherwise damages are reduced.
Tex. Transp. Code § 601.072(a-1): Minimum coverage amounts
Since Jan. 1, 2011: $30,000 per person, $60,000 per collision for injury, $25,000 property damage.
Researched September 30, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in TX
We serve Texas 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.
