Diminished value law

Can you recover diminished value in your state?

Whether you can claim your car's lost value depends on two things: who you're claiming against (the at-fault driver's insurer, or your own) and your state's law. Here's both answers, for all 50 states and D.C.

This chart is general information, not legal advice. Case law shifts and policy language matters — for legal questions about your claim, consult an attorney in your state. Rule of thumb: third-party claims (the other driver was at fault) are recoverable in most states; first-party claims (against your own insurer) are barred almost everywhere — Georgia is the standout exception.

How to read this chart

StateFirst party (your own insurer)Third party (at-fault driver's insurer)
AlabamaNot recoverable
Insurer owes repairs, not lost value (Pritchett, 2002).
Unsettled
No decisions allowing post-repair DV.
AlaskaUnsettled
No auto-claim decisions on point.
Unsettled
Courts have acknowledged the theory (Willett, 1992) without squarely adopting it.
ArizonaNot recoverable
Johnson v. State Farm (1988).
Recoverable
Repair cost plus proven residual DV (Farmers v. R.B.L., 1983; Oliver, 2011).
ArkansasNot recoverable
Most policies exclude it.
Recoverable
Post-repair residual DV recoverable (MFA Ins., 1977).
CaliforniaNot recoverable
Proper repair discharges the policy (Ray, 1988; Foster, 2018).
Limited
Law unsettled, but the standard jury instruction (CACI 3903J) permits repair cost + residual loss of value.
ColoradoLimited
"Like kind and quality" must restore function and value (Hyden, 2000).
Recoverable
Diminution is an element of damages (Trujillo, 1948).
ConnecticutNot recoverable
Standard policies don't cover lost market value.
Recoverable
Repair costs plus residual DV (Littlejohn, 1944, and a long line since).
DelawareNot recoverable
"Repair or replace" excludes DV (O'Brien, 2001).
Unsettled
No decisions on point.
District of ColumbiaUnsettled
No insurance-coverage decisions.
Recoverable
Repair cost + residual DV, capped at gross diminution (Helton, 2005).
FloridaNot recoverable
First-rate repair ends the obligation (Siegle, 2002).
Recoverable
Repairs + DV is the ordinary measure; no sale required to prove it (McHale, 1982).
GeorgiaRecoverable
The national exception: insurers must assess and pay DV even if you don't ask (Mabry, 2001).
Recoverable
Repairs + permanent impairment, with loss of use (Perma Ad Ideas, 1981).
HawaiiUnsettled
No auto cases.
Unsettled
No decisions on point.
IdahoUnsettled
No auto cases.
Unsettled
No decisions on point.
IllinoisNot recoverable
"Like kind and quality" doesn't include intangible lost value (Sims, 2006).
Recoverable
Repair cost + difference in post-repair value (Trailmobile, 1973).
IndianaNot recoverable
Allgood v. Meridian (2005).
Recoverable
Repair + residual DV with proof of post-repair value (Wiese-GMC, 1993; Shield Global, 2020).
IowaLimited
DV policy exclusions rescinded by regulation (2004) — outcome turns on your policy.
Recoverable
With expert testimony (Hawkeye Motors, 1995).
KansasLimited
Some commercial coverage found (Boyd Motors, 1989).
Recoverable
Repair + remaining difference in value (Broadie, 1923; Venable, 1974).
KentuckyNot recoverable
Insurer restores condition, not value (Tomes, 1991).
Recoverable
Post-repair value may include stigma (Muncie, 2018).
LouisianaNot recoverable
Payment for full repair satisfies the policy (Campbell, 2001).
Recoverable
By statute — La. R.S. 9:2800.17 (2010).
MaineNot recoverable
DV is "a loss that cannot be repaired" (Hall, 2002).
Unsettled
No decisions allowing post-repair DV.
MarylandUnsettled
No auto-policy decisions.
Recoverable
Repairs + proven post-repair DV (Fred Frederick, 1971).
MassachusettsNot recoverable
Division of Insurance: standard policy doesn't cover it.
Limited
Recoverable in tort (McGilloway, 2021), but the 2016 standard policy language excludes it (Merullo, 2022) — the policy year matters.
MichiganNot recoverable
Driscoll (2002).
Unsettled
No decisions on point.
MinnesotaLimited
Old authority favors paying uncompensated depreciation (Ciresi, 1932).
Unsettled
No decisions on point.
MississippiRecoverable
Remaining loss in value adds to repair cost (Potomac, 1952).
Recoverable
Repair + remaining diminution (Ishee, 1980).
MissouriLimited
Unambiguous exclusions hold (Lupo, 2002), but incomplete repairs open the door (Williams, 1957).
Recoverable
Repair cost + post-repair difference in value (Rook, 1977).
MontanaLimited
Restoration isn't complete if value is still diminished (Eby, 1962).
Unsettled
Expressly left open (Hop v. Safeco, 2011).
NebraskaNot recoverable
Lost market value only when the vehicle isn't repaired (Chlopek, 1986).
Unsettled
No decisions on point.
NevadaNot recoverable
Regulation requires restoring condition only (NAC 686A.680).
Unsettled
No decisions on point.
New HampshireUnsettled
No decisions on point.
Unsettled
No decisions on point.
New JerseyLimited
Turns on policy language; clear exclusions hold (Kieffer, 2011).
Recoverable
"Scarlet letter" DV claims recognized (Panter, 2019).
New MexicoNot recoverable
Davis (2006).
Limited
Lesser of repair + depreciation, or reduction in market value (Hubbard, 1998).
New YorkLimited
Depends on policy language (Edwards, 1922).
Limited
Recoverable for new, unique, or appreciating vehicles (Franklin Corp., 2011; Rosenfield, 1988).
North CarolinaRecoverable
Statutory appraisal procedure for first-party DV disputes (N.C.G.S. § 20-279.21(d)(1)).
Recoverable
Before/after value is the standard measure; DV claims survive releases if asserted within 30 days of repair (11 NCAC 4.0421(5)).
North DakotaUnsettled
No decisions on point.
Limited
Repair cost is the presumed measure; value difference when repair is impracticable (N.D.C.C. § 32-03-09.1).
OhioNot recoverable
Nationwide v. Shah (2004).
Recoverable
Repair + residual DV, capped at gross diminution (Rakich, 2007).
OklahomaNot recoverable
Before/after value is the measure, not a DV add-on (Diffie, 1954).
Recoverable
Repairs + post-repair diminution (Brennen v. Aston, 2003).
OregonRecoverable
"Repair" means restored to pre-loss value — DV owed if it isn't (Gonzales, 2008).
Limited
Acknowledged, but proof burden is high (EAM Advertising, 1998).
PennsylvaniaNot recoverable
Lobozzo (1970); Munoz (1999).
Recoverable
Repair cost with allowance for lost value, plus loss of use (Holt, 1947).
Rhode IslandLimited
"Like kind and quality" held ambiguous — a jury question (Cazabat, 2000).
Unsettled
No decisions on point.
South CarolinaNot recoverable
Schulmeyer (2003).
Recoverable
Repairs + remaining diminution (Newman v. Brown, 1955).
South DakotaNot recoverable
Culhane (2005).
Unsettled
No decisions on point.
TennesseeNot recoverable
Black (2002).
Limited
Not definitively recognized; Bloodworth (2007) sets the proof framework if pursued.
TexasNot recoverable
Schaefer (2003); TDI Bulletin B-0027-00.
Limited
Courts treat repair and value-difference as either/or, but the TDI bulletin says liability insurers may owe third-party lost market value.
UtahUnsettled
No decisions on point.
Recoverable
Repairs + post-repair depreciation (Metcalf, 1920).
VermontRecoverable
Absent contrary language, policies must pay DV (Insurance Bulletin 164, 2011).
Recoverable
Before/after value is the measure (Kinney, 1965).
VirginiaNot recoverable
Bickel (1965).
Recoverable
Repairs + post-repair depreciation (Averett v. Shircliff, 1977).
WashingtonRecoverable
"Repair or replace" coverage includes diminished value (Moeller, 2011).
Recoverable
DV recoverable where repair can't fully restore pre-loss condition (Grothe, 2022).
West VirginiaNot recoverable
No authority for first-party DV per the Insurance Commissioner's office.
Limited
Allowed for structurally damaged vehicles of significant value (Ellis v. King, 1990; Brooks, 2014).
WisconsinNot recoverable
Wildin (2001).
Recoverable
Repair + lost value if repairs didn't restore pre-injury value (Hellenbrand, 2004).
WyomingUnsettled
No auto cases.
Unsettled
No decisions on point.

State summaries adapted from a 50-state survey compiled by Matthiesen, Wickert & Lehrer, S.C. (mwl-law.com), last updated April 2026. Case law evolves — verify current status before relying on any entry.

What this means in practice: if the other driver was at fault, you likely have a DV claim worth documenting — and in every state, the claim rises or falls on proof: a signed expert appraisal of your vehicle's pre-loss and post-repair value. That's exactly what our flat-fee DV report provides.

Your state allows it. Now prove it.

Sixty seconds tells you whether your claim fits — newer vehicle, not leased, other party at fault. Free screening before you spend a dollar.

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