Understanding and Getting a Diminished Value Appraisal in Indiana

Disclaimer: This is general information and not legal advice. If you need legal advice about a specific situation, consult a licensed Indiana attorney.

Detailed Answer

Diminished value describes the loss in a vehicle’s market value after it has been damaged and repaired. Insurers sometimes pay for the cost to repair visible damage but refuse or undervalue the loss in resale value caused by an accident. In Indiana, diminished value claims are handled like other property-damage claims: you document the loss, obtain an appraisal or valuation report, submit it to the insurer, and, if necessary, negotiate, use complaints to the Indiana Department of Insurance, or pursue court remedies.

Step-by-step process to obtain a usable diminished value appraisal

1. Act promptly and preserve evidence. Take high-quality photos immediately after the accident (before repairs if possible) and keep all repair invoices, receipts, parts lists, and the final repair invoice. Get a vehicle history report (e.g., Carfax) and note any pre-accident condition documentation or records showing mileage and service history.
2. Determine the type of diminished value you’ll claim.
   • Inherent diminished value: the usual reduction in resale value simply because a vehicle has an accident history even after good repairs.
   • Repair-related diminished value: when repairs are incomplete, use non-original parts, or cause lingering issues that lower value.
3. Collect baseline market data. Record the vehicle’s pre-accident market value using reliable market guides (Kelley Blue Book, NADA, or local market comparables), noting mileage, trim, options, and condition. Save printouts or screenshots and note dates.
4. Choose an independent appraiser. Look for an appraiser who:
   • Has experience with diminished value reports.
   • Provides a written, signed report you can submit to the insurer.
   • Uses industry data sources and explains methodology (market comparables, guidebooks, repair invoices, vehicle history reports, before-and-after photos).

   You can search for qualified independent vehicle appraisers, ASE-certified mechanics who do valuation work, or firms that advertise diminished value appraisals. Ask for sample reports and references.

5. Provide the appraiser with complete documents. Give the appraiser photos, repair invoices, the vehicle history report, baseline market data, and any pre-accident documentation. The more complete the file, the more persuasive the report.
6. Get the written appraisal/report. A useful diminished value report typically includes:
   • Statement of purpose (diminished value appraisal as of a stated date)
   • Vehicle identification (VIN, year, make, model, mileage)
   • Summary of damage and repairs with photos
   • Pre- and post-accident market value estimates and sources
   • Methodology and calculations showing how the diminished value figure was reached
   • Attachments: repair bills, vehicle history report, market comparables
   • Appraiser’s qualifications and signature
7. Submit the report to the insurer. Send the appraisal and supporting documents to the at-fault party’s insurer (third-party claim) or your insurer if you claimed under your own policy (first-party). Keep records of delivery and any communications.
8. Negotiate or escalate. Insurers may accept, reject, or make a counteroffer. If negotiation fails, you can:
   • File a formal complaint with the Indiana Department of Insurance: https://www.in.gov/idoi/
   • Consider small claims court or civil action depending on the amount in controversy and the strength of evidence. For information about court procedures and self-help resources: https://www.in.gov/judiciary/
   • Consult an Indiana attorney if the claim is substantial or complicated.

Practical tips on finding and working with an appraiser

• Ask whether the appraiser uses accepted diminished value formulas (explain methodology). Avoid reports that give an unexplained single number.
• Prefer a written report you can submit; verbal estimates are rarely enough for insurers or courts.
• Get cost and turnaround time upfront. Typical reports can range from a few hundred dollars to more, depending on complexity.
• Consider getting two independent appraisals if the claim value is high and the insurer disputes the first report.

How insurers typically respond in Indiana

There’s no special “diminished value” statute unique to these claims in Indiana; insurers evaluate property damage claims under insurance policy terms and general tort and contract rules. If an insurer denies payment or makes an unreasonably low offer, you may use the insurer’s internal appeal process, file a complaint with the Indiana Department of Insurance, or pursue legal remedies. The Department can guide you about company complaint procedures and your consumer rights: https://www.in.gov/idoi/

Helpful Hints

• Keep a complete folder (digital + physical) of photos, repair invoices, receipts, vehicle history, and communications with the insurer.
• Photograph the odometer and VIN, and include close-ups of repaired areas and overall vehicle photos before and after repair.
• Save market value printouts (KBB, NADA) showing comparable vehicles; insurers respect transparent market data.
• If the vehicle was not repaired, a report showing unrepaired damage and loss of marketability can be persuasive for payment of diminished value.
• Check costs versus likely recovery. Small diminished value amounts may not justify a high-cost appraisal; for larger claims, a professional appraisal is often worthwhile.
• File insurer complaints and consider small claims court if informal negotiation fails. Use local court self-help resources: https://www.in.gov/judiciary/
• When in doubt about deadlines, act quickly. Preserve evidence and start the appraisal and claim process as soon as possible. If you think you may need a lawsuit, consult an attorney early to avoid missing procedural deadlines.

For general information about insurance consumer rights or to file a complaint, go to the Indiana Department of Insurance: https://www.in.gov/idoi/. For statutory text or to look up Indiana statutes, use the Indiana General Assembly’s website: https://iga.in.gov/.

Remember: this article explains the typical appraisal process and practical steps in Indiana. It does not replace personalized legal advice from a licensed attorney.