Which states allow diminished value claims?

All 50 states allow third-party diminished value claims against the at-fault driver's liability insurance to some degree. Georgia is the only state that clearly allows first-party DV claims against your own collision coverage, established by State Farm v. Mabry (2001).

What is the difference between first-party and third-party DV claims?

A third-party DV claim is filed against the at-fault driver's liability insurance. A first-party DV claim is filed against your own collision coverage. Most states only allow third-party claims. Georgia uniquely allows first-party claims.

How long do I have to file a diminished value claim?

The statute of limitations varies by state, ranging from 2 years (Texas, Pennsylvania) to 6 years (some states). Most states allow 3-4 years. Filing sooner is always better for stronger evidence.

Diminished Value Laws by State: Complete 50-State Guide

50-State DV Law Comparison

The table below summarizes diminished value claim rights across all 50 states. Click any linked state for a detailed page on that state's DV laws and process.

State	3rd-Party DV	1st-Party DV	SOL (Years)	Fault Rule
Alabama	✓	✗	6	Contributory
Alaska	✓	✗	6	Pure comparative
Arizona	✓	✗	2	Pure comparative
Arkansas	✓	✗	3	Modified (50% bar)
California	✓	✗	3	Pure comparative
Colorado	✓	✗	3	Modified (50% bar)
Connecticut	✓	✗	6	Modified (51% bar)
Delaware	✓	✗	2	Modified (51% bar)
Florida	✓	✗	4	Modified (51% bar)
Georgia ★	✓	✓	4	Modified (50% bar)
Hawaii	✓	✗	2	Modified (51% bar)
Idaho	✓	✗	3	Modified (50% bar)
Illinois	✓	✗	5	Modified (50% bar)
Indiana	✓	✗	6	Modified (51% bar)
Iowa	✓	✗	5	Modified (51% bar)
Kansas	✓	✗	2	Modified (50% bar)
Kentucky	✓	✗	2	Pure comparative
Louisiana	✓	✗	1	Pure comparative
Maine	✓	✗	6	Modified (50% bar)
Maryland	✓	✗	3	Contributory
Massachusetts	✓	✗	3	Modified (51% bar)
Michigan	✓	✗	3	Modified (50% bar)
Minnesota	✓	✗	6	Modified (51% bar)
Mississippi	✓	✗	3	Pure comparative
Missouri	✓	✗	5	Pure comparative
Montana	✓	✗	2	Modified (51% bar)
Nebraska	✓	✗	4	Modified (50% bar)
Nevada	✓	✗	3	Modified (51% bar)
New Hampshire	✓	✗	3	Modified (51% bar)
New Jersey	✓	✗	6	Modified (51% bar)
New Mexico	✓	✗	4	Pure comparative
New York	✓	✗	3	Pure comparative
North Carolina	✓	✗	3	Contributory
North Dakota	✓	✗	6	Modified (50% bar)
Ohio	✓	✗	4	Modified (51% bar)
Oklahoma	✓	✗	2	Modified (51% bar)
Oregon	✓	✗	6	Modified (51% bar)
Pennsylvania	✓	✗	2	Modified (51% bar)
Rhode Island	✓	✗	10	Pure comparative
South Carolina	✓	✗	3	Modified (51% bar)
South Dakota	✓	✗	6	Modified (51% bar)
Tennessee	✓	✗	3	Modified (50% bar)
Texas	✓	✗	2	Modified (51% bar)
Utah	✓	✗	4	Modified (50% bar)
Vermont	✓	✗	3	Modified (51% bar)
Virginia	✓	✗	5	Contributory
Washington	✓	✗	3	Pure comparative
West Virginia	✓	✗	2	Modified (50% bar)
Wisconsin	✓	✗	6	Modified (51% bar)
Wyoming	✓	✗	4	Modified (51% bar)

★ Georgia is the only state with clearly established first-party DV claim rights (State Farm v. Mabry, 2001). SOL = Statute of Limitations for property damage. Fault rules affect recovery when the claimant shares fault.

Understanding the Key Columns

Third-Party DV: Claims filed against the at-fault driver's liability insurance. Available in all 50 states, though practical enforceability varies. A certified diminished value appraisal significantly improves success rates.

First-Party DV: Claims filed against your own collision coverage. Georgia is the only state where this right is clearly established by the state supreme court. Some other states have pending legislation or ambiguous case law.

Statute of Limitations: The deadline to file your claim, measured from the accident date. Ranges from 1 year (Louisiana) to 10 years (Rhode Island). Most states fall in the 2–4 year range. Always file as soon as possible — evidence is stronger and dealer quotes more relevant when the claim is filed promptly.

Fault Rule: Determines how your own fault (if any) affects recovery:

Pure Comparative: Recovery reduced by your fault percentage. You can recover even at 99% fault.
Modified Comparative (50% or 51% bar): Recovery reduced by your fault percentage, but completely barred if your fault exceeds the threshold.
Contributory: Any fault on your part (even 1%) bars all recovery. Only 4 states + DC use this harsh rule.

Which States Have the Strongest DV Protections?

Based on case law, statute of limitations, and practical enforceability:

Georgia — First-party claims allowed, 4-year SOL, no DV cap, extensive case law
Texas — Strong third-party rights, SB 458 appraisal clause protections, massive market
California — Pure comparative fault, 3-year SOL, strong consumer protections, highest vehicle values
Illinois — 5-year SOL gives ample time to file, large market
Washington — ASCAA recognized in legislation, 3-year SOL, pure comparative fault

The Importance of Certified Appraisals

Regardless of your state, a certified diminished value appraisal from an ASCAA-certified appraiser is the single most important factor in a successful DV claim. Insurance companies take certified, USPAP-compliant appraisals seriously because they know the methodology will hold up in court. Without a certified appraisal, you're negotiating without leverage.

Why Choose an ASCAA-Certified Appraiser?

USPAP Compliant

Every ASCAA appraiser follows the Uniform Standards of Professional Appraisal Practice — the nationally recognized standard for appraisal quality.

Court Defensible

ASCAA appraisal reports are accepted in court proceedings, arbitration, mediation, and insurance disputes across all 50 states.

5-Course Certification

ASCAA appraisers complete a comprehensive certification covering ethics, inspection, methodology, reporting, and real-world simulations.

Nationwide Network

ASCAA-certified appraisers serve clients in every state. Find a qualified professional in your area today.

Find a Certified Appraiser in Your State

Search our nationwide directory for ASCAA-certified diminished value appraisers.

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