Can I Claim Diminished Value from My Own Insurance?

First-Party vs. Third-Party DV Claims

There are two types of diminished value claims, and understanding the difference is critical:

• Third-Party DV Claim: Filed against the at-fault driver's liability insurance. This is the standard DV claim available in virtually all states. If someone else caused the accident, their insurance owes you for the lost value of your vehicle.
• First-Party DV Claim: Filed against your own collision or comprehensive coverage. This would apply when you were at fault, when the other driver is uninsured, or when you simply want to claim against your own policy. This is where the law gets complicated.

The General Rule: Most States Say No

In the majority of states, courts have ruled that standard auto insurance collision coverage only covers the cost of repairs — not the diminished value that remains after repairs. Insurance policies typically promise to "repair or replace" or restore the vehicle to its "pre-loss condition," and insurers argue that completed repairs fulfill this obligation.

This means if you caused the accident yourself, or if the other driver has no insurance, you generally cannot recover diminished value from your own collision coverage.

The Georgia Exception

Georgia is the landmark exception. In the 2001 case State Farm Mutual Automobile Insurance Co. v. Mabry, the Georgia Supreme Court ruled that auto insurance policies in Georgia must cover diminished value as part of property damage coverage. This means Georgia vehicle owners can claim DV from their own insurance company regardless of who was at fault.

The Georgia ruling has made the state a hotbed for diminished value claims and has established a well-developed body of case law around DV calculation and evidence requirements.

Other States with Potential

While Georgia is the only state with clear first-party DV rights, some other states have limited case law or statutory language that may support first-party claims in certain circumstances:

• Kansas: Some favorable court decisions, but not as established as Georgia
• North Carolina: Limited case law supporting DV under certain policy terms
• Louisiana: Civil code provisions may support DV claims in some contexts

In all cases, consult with an attorney in your specific state for current guidance.

Your Best Option: Third-Party Claims

If another driver caused the accident, the strongest path to recovering diminished value is a third-party DV claim against their liability insurance. This is available in all states and is the most commonly successful approach. A certified diminished value appraisal from an ASCAA-certified appraiser provides the professional documentation needed for a successful claim.