Detailed answer — what you need and why

Diminished value means the reduction in a vehicle’s market value after it is damaged and repaired. In New Hampshire, you can seek recovery of diminished value from the at-fault driver’s insurer (a third-party claim) or, in some situations, from your own insurer depending on your policy. The central idea: prove the car was worth X before the wreck and is worth Y after repairs, and then document the difference.

Key types of evidence to establish diminished value

• Pre-accident valuation: market guides and comparable listings (Kelley Blue Book, NADA, Edmunds) showing fair market value immediately before the crash.
• Post-repair valuation: dealer quotes, trade-in offers, private-sale listings, and an independent appraisal after repairs.
• Repair records and invoices: detailed shop invoices that list all work performed and parts used.
• Photographs and video: clear images of damage before repair, the repair process, and the finished vehicle (interior and exterior).
• Vehicle history report: Carfax or AutoCheck showing the accident entry on the vehicle’s record.
• Comparable sales (comps): listings for similar-year/mileage/trim vehicles without accident history from the same local market.
• Mileage and maintenance records: current odometer reading and service history to support comparative valuation.

Appraisal methods commonly used

Insurers and appraisers use several approaches. Expect one of these:

• Market-comparison method — the appraiser compares comparable cars (same make/model/year/miles, no accident history) to determine the fair market loss.
• Cost-based approach — looks at repair severity and cost but adjusts for loss of market perception after repairs.
• Formula methods — some insurers use a standardized formula (often called “trade” or industry formulas) to estimate diminished value based on pre-loss value and damage severity. These formulas vary and are not a legal requirement in New Hampshire.

Suggested appraisal process (step-by-step)

1. Preserve evidence at the scene: take photos and note the at-fault party and insurer information.
2. Obtain a written repair estimate and keep all repair invoices and warranty documents.
3. Get a vehicle history report showing the accident entry.
4. Collect pre-loss value evidence: printouts from KBB/NADA/Edmunds and local comparable listings dated as close to the accident date as possible.
5. Hire an independent diminished-value appraiser (optional but helpful). Ask for a signed, itemized report with market comps and the appraiser’s methodology.
6. Send a written demand to the at-fault driver’s insurer attaching your documentation and the appraisal. Keep copies and send by certified mail or a trackable method.
7. If the insurer refuses, consider small claims court or consult an attorney about filing suit. Keep all communications and written denials.

Hypothetical example to illustrate

Hypothetical: Your 2018 sedan had a pre-accident fair market value of $15,000 (KBB/NADA + local comps). After repair, a dealer offers $13,500 for the same car; an independent appraiser prepares a report showing comparable clean-title cars sell for $15,000 while similar repaired-title cars sell for $13,400. Diminished value ≈ $1,600. Present the appraiser’s report, repair invoices, photos, and comps to the at-fault insurer as your demand.

New Hampshire resources and consumer protection

If you believe an insurer is acting in bad faith or engaging in unfair claims practices, New Hampshire’s Consumer Protection Act may apply. See the statute: RSA 358-A (Consumer Protection). You can also contact the New Hampshire Insurance Department for consumer guidance: NH Insurance Department – Consumers.

How to present your diminished value claim to an insurer

Prepare a clear packet and cover letter. Include:

• Cover letter summarizing your demand and the dollar amount sought.
• Independent appraisal report (if you have one).
• Repair invoices and photos before/during/after repair.
• Pre-loss valuation evidence and local comparable listings.
• Vehicle history report showing the accident entry.
• Proof of mailing and a timeline of events.

Send the packet to the at-fault driver’s insurer and keep proof of delivery. Be concise and factual. Note deadlines the insurer gives you for additional information.

When to consider legal help or small claims court

Consider small claims court if the insurer refuses to pay a reasonable diminished value amount and the amount sought falls within the small claims limit. If the claim is larger or the insurer’s denial raises complex legal questions, consult an attorney. A lawyer can evaluate procedural steps and the likely cost-benefit of litigation.

Helpful hints

• Act quickly: document photos and market evidence as soon after the accident as possible.
• Keep everything: receipts, estimates, emails, and text messages.
• Get multiple comps from the local market (not just national guides) to show local resale impact.
• Use an appraiser who documents methodology, comps, and provides a signed report.
• Ask the repair shop to document pre-repair photos and parts replaced with OEM vs aftermarket notes.
• Check whether your own policy has a diminished-value or gap provision; some policies limit recovery from your insurer.
• Be professional in correspondence—clear, factual, and organized claims resolve faster.