How prior accidents affect a diminished value claim in New Hampshire

Disclaimer: This is general information, not legal advice. I am not a lawyer. For legal advice about your particular situation, contact a licensed New Hampshire attorney.

Detailed answer: What you need to know

“Diminished value” refers to the loss in a vehicle’s market value after it’s been damaged and repaired. When you file a diminished value claim in New Hampshire, the fact that a vehicle had one or more accidents before you owned it can directly affect how much (if anything) you can recover. Below are the key principles and how they typically play out.

1) Who pays the claim and who bears the burden of proof

If the current damage was caused by another driver’s negligence, you can normally pursue a diminished value claim against that at-fault driver’s liability insurer. That insurer will look at the vehicle’s value before and after the current crash. If there were prior accidents, the insurer will often argue that any reduction in value is at least partly due to those earlier incidents, not the current crash.

You, as the claimant, must show the diminished value caused by the current accident. That means proving (1) the car had a certain market value immediately before the covered crash, and (2) the car’s market value after repair is lower because of the crash now at issue.

2) How prior accidents commonly affect the claim

Apportionment or offsets: Insurers typically reduce the award for prior damage. If the carrier has records or vehicle history showing previous severe damage, it may assert some or all diminished value results from those past events.
Pre-existing condition defense: An insurer may claim the vehicle already had diminished value prior to the current crash because of prior repairs, structural damage, or cosmetic defects.
Complete bar to recovery (in some cases): If the vehicle’s recorded history shows major structural damage or a salvage/title brand before you purchased it, an insurer might deny the diminished value claim entirely, arguing the current collision did not materially change the vehicle’s marketability.

3) Evidence that helps isolate the impact of the current crash

The stronger your evidence that the current crash caused the new reduction in value, the better your chance of recovering diminished value despite prior accidents. Useful evidence includes:

Pre-accident photos or videos showing the car’s condition before the current crash.
Repair invoices, inspection reports, and appraisals from repairs completed before you owned the vehicle.
A full vehicle history report (CARFAX, AutoCheck) that documents dates and severity of prior claims or title brands.
An independent diminished value appraisal that specifically addresses how much of the loss is attributable to the current event versus earlier events. Appraisers use methods such as the market comparison approach or 17c reports; ensure the appraiser explains apportionment.
Comparable sales (comps) of similar vehicles with and without prior accident history to demonstrate market preference and price differences.

4) Practical approaches insurers and appraisers use

Appraisers and insurers typically try to separate loss causes:

If prior damage was minor and properly repaired, an appraiser may attribute most diminished value to the new accident.
If prior damage was significant (structural repair, frame work, or a branded/salvage title), the insurer will argue most or all of the diminished value is pre-existing.
Where facts overlap, the parties may negotiate apportionment—each side assigns a percentage of the total loss to the prior events versus the current event.

5) Timing and process in New Hampshire

New Hampshire does not have a separate statutory regime that uniquely governs diminished value claims; these claims arise from property-damage and contract/insurance principles and are handled through insurer claim processes or civil suits. If negotiations fail, you can pursue the claim in small claims court or file a lawsuit in the appropriate New Hampshire court. For information about filing a consumer complaint against an insurer or learning about your rights under NH insurance rules, see the New Hampshire Insurance Department: https://www.nh.gov/insurance/.

6) What to expect in negotiations or court

Expect the insurer to obtain its own inspection, appraisal, and vehicle history check.
Be prepared to show any documentation you have about the car’s pre-loss condition and prior repairs.
If you cannot show the car’s pre-loss condition, the insurer’s position that prior accidents caused the diminished value carries more weight.
Courts generally require reasonably persuasive evidence linking the current crash to the lost market value. Expert appraisal testimony or detailed market comps often make the difference.

Helpful hints: Steps to protect a diminished value claim when the car had prior accidents

Gather documentation quickly: retrieve vehicle history reports, prior repair invoices, title papers, and any pre-purchase inspection reports.
Get professional evidence: hire an independent appraiser who knows diminished value methodology and can explain apportionment between incidents.
Preserve photos and communications: keep photos of the vehicle, all repair receipts, and all communications with insurers and repair shops.
Ask for insurer reasoning in writing: if the insurer reduces or denies your claim based on pre-existing damage, request a written explanation and what records they relied on.
Use comparable sales: collect ads or sales records for the same make/model/trim/year with and without accident history to demonstrate market impact.
Consider alternative forums: small claims court can be appropriate for lower-value disputes; larger claims may require an attorney and a civil suit.
Contact the NH Insurance Department for help or to file a complaint if you suspect unfair claim handling: NH Insurance Department complaints.
Talk to a New Hampshire attorney if facts are complex, if the insurer refuses to negotiate, or if significant money is at stake.

Example (hypothetical)

Suppose you buy a 2016 sedan that, according to a vehicle history report, had a minor rear bumper repair in 2018 and was not branded as a salvage vehicle. You are in a not-at-fault collision in 2024. After repair, the dealer appraises the car and says the market value is $2,000 less than before. The at-fault insurer inspects the car and says some reduction is from the 2018 bumper repair and denies your diminished value. To counter this, you would gather the 2018 repair invoice, photos showing the car’s overall condition before 2024, a current independent diminished value appraisal that explains why the 2024 crash caused most of the $2,000 loss, and comparable sales showing similar cars without that new accident sell for more. Present that package to the insurer and negotiate; if you cannot reach agreement, consider small claims or civil court depending on the amount.

When to consult an attorney

Talk with a New Hampshire attorney if:

The insurer denies your claim and the diminished value is substantial.
Apportionment between prior accidents and the current crash is highly contested.
You need help working with appraisers or preparing evidence for court.

To find a NH attorney, you can contact the New Hampshire Bar Association or use local referral services. For consumer help with insurers, see the New Hampshire Insurance Department: https://www.nh.gov/insurance/.

Final note: Prior accidents do not automatically eliminate a diminished value claim in New Hampshire, but they make proof harder. The central issue is causation: you must show how much of the current loss in market value is directly attributable to the most recent accident rather than past damage.

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