Diminished Value Claims in Georgia

Georgia's Landmark DV Law: State Farm v. Mabry

In 2001, the Georgia Supreme Court issued its landmark ruling in State Farm Mutual Automobile Insurance Company v. Mabry, establishing that diminished value is a covered loss under collision coverage in Georgia. This means Georgia policyholders can file first-party DV claims against their own insurer — a right that exists in no other state with such clarity.

The Mabry decision transformed Georgia into the most active diminished value market in the United States. Georgia insurers process thousands of DV claims annually, and a well-documented certified appraisal is the key to a successful claim.

Types of Georgia DV Claims

• First-Party (Your Own Insurance): Even if you caused the accident, you can claim DV from your own collision coverage. Your claim is subject to your collision deductible and coverage limits.
• Third-Party (At-Fault Driver's Insurance): Standard DV claims against the at-fault driver's liability coverage — available in Georgia just as in other states.

How to File a Georgia DV Claim

1. Complete all repairs. Georgia DV claims require that the vehicle has been repaired.
2. Get a certified DV appraisal. Contact an ASCAA-certified appraiser in Georgia. Georgia insurers are experienced with DV claims and expect professional documentation.
3. Submit your claim. For first-party claims, file with your own collision insurer. For third-party claims, file with the at-fault driver's liability insurer.
4. Negotiate. Georgia insurers typically make an initial offer — your certified appraisal is your leverage for a fair settlement.
5. Escalate if needed. Georgia's appraisal clause process, the Georgia Commissioner of Insurance, or state court are available options.

Georgia DV Claim Details

• First-Party Claims: Yes — uniquely allowed under State Farm v. Mabry
• Third-Party Claims: Yes — standard
• Statute of Limitations: 4 years for property damage
• Comparative Fault: Georgia uses modified comparative negligence (50% bar)
• No DV Cap: Georgia does not impose an arbitrary cap on DV amounts

See also: Georgia Auto Appraiser Laws