What “diminished value” means (simple explanation)

Diminished value is the drop in a vehicle’s market value after it has been damaged and repaired. Even if repairs are done well, many buyers pay less for a car with a damage history. A diminished-value appraisal tries to quantify that loss in dollars.

Who can make a diminished value claim in Nevada?

You generally can seek diminished value from the at-fault driver’s insurer (third-party claim). If you accepted a total-loss payout from your own insurer, your rights to seek additional diminished value may differ. Always check your policy language and keep copies of all communications. If you’re unsure how Nevada law or your policy applies to your situation, contact the Nevada Division of Insurance at https://doi.nv.gov.

Step-by-step process to get an appraisal that proves diminished value

1. Confirm you have an actionable claim. You will usually claim diminished value from the at-fault party’s insurer. Verify who is legally at fault and whether their insurer is accepting liability. If you were partly at fault, Nevada comparative-fault rules may affect recoverable amounts.
2. Gather documentation before and after repairs. Collect: repair estimates, final repair invoices, photos of damage (before, during, after repair), the vehicle’s VIN, current odometer reading, title/registration, maintenance and upgrade receipts, and any pre-accident photos and listings that show original condition. Also get a vehicle history report (e.g., CARFAX) to show the post-accident report entry.
3. Select a qualified diminished-value appraiser. Look for appraisers who: have experience with diminished-value opinions, provide full written reports usable in insurance negotiations and court, and can show sample reports and references. Useful credentials to check: membership in recognized appraisal organizations and experience valuing similar vehicles. Ask for pricing (many appraisers charge in the low hundreds).
4. Understand the appraisal methodology. A credible report will explain the method used to calculate diminished value—commonly the market approach (comparing sale prices of similar vehicles before and after accident), or a formula-based method adjusted by comparables and market data. The report should give a clear pre-accident value, a post-repair market value, and the resulting diminished value (difference).
5. Obtain the written appraisal report. A useful report will include: appraiser contact and qualifications; vehicle identification (VIN, year, make, model, trim, mileage); pre-accident condition and supporting evidence; description and photos of damage and repairs; copies of repair invoices and estimates; market comparables and sources; calculation steps; and a clear dollar figure for diminished value with a signed certification.
6. Send a demand package to the at-fault insurer. Include a cover letter or demand letter, the appraisal, repair invoices, photos, vehicle history report, and any listings/comparables. State a deadline for a response (commonly 10–21 days) and request payment or a detailed denial. Keep all delivery receipts and copies.
7. If the insurer denies or lowballs: check the at-fault policy for an appraisal/arbitration clause. Some policies let parties invoke appraisal or binding arbitration for valuation disputes. If there is no appraisal clause or the insurer still refuses, your options include: filing a claim in small-claims court (for smaller amounts), pursuing a civil action in district court, or hiring an attorney to negotiate or sue—especially if the amount is significant or insurer bad faith may apply.

How appraisers determine the dollar amount (what to expect)

Common approaches:

• Market approach: Compare sale listings and closed sales of similar pre-accident vehicles and similar post-repair vehicles. Adjust for mileage, options, condition, and local market.
• Cost approach: Look at the cost to repair and any remaining obvious defects—but cost alone does not equal market loss.
• Hybrid or formula approaches: Some appraisers use industry formulas (with market adjustments) to estimate immediate or inherent diminished value.

A strong report relies on local market data and several solid comparables, not just a single number or formula.

Practical timeline and costs

Typical timing: hiring an appraiser and getting a report usually takes 1–3 weeks, depending on vehicle availability and appraiser workload. Appraiser fees commonly range from about $150 to $500, sometimes more for complex or high-value vehicles. Expect some negotiation time with the insurer after you submit the report.

When to involve an attorney

Consider hiring an attorney if:

• The insurer refuses to pay a reasonable diminished-value amount and the sum justifies the cost of litigation.
• There are signs of insurer bad faith or unfair claims handling.
• The claim involves a high-value vehicle or complicated facts (multiple at-fault parties, total loss issues, or overlapping policy questions).

An attorney can evaluate Nevada-specific legal issues, preserve rights, and pursue litigation if needed. You can also file complaints with the Nevada Division of Insurance if you suspect improper handling: https://doi.nv.gov/Consumers/.

Common pitfalls to avoid

• Don’t sign releases that waive future diminished-value claims before you know the full loss.
• Don’t accept a repair-only payment without documenting why diminished value also exists.
• Don’t rely on a shop’s informal statement; get a formal, written diminished-value report from a qualified appraiser.
• Avoid low-cost “appraisals” that do not list comparables or methodology—insurers often ignore poorly documented reports.

Helpful hints

• Start documenting immediately: take clear photos of damage and the odometer before repairs begin.
• Keep all repair estimates, final invoices, and parts receipts. Hand-written notes can help but are weaker than invoices.
• Order a vehicle history report to show the accident event as evidence the market will see.
• Ask appraisers for sample reports and references from Nevada claims they’ve handled.
• Get more than one appraisal if you feel the first one is under-supported; multiple independent appraisals can strengthen your negotiation position.
• Check your insurer’s policy language for appraisal/arbitration clauses before initiating a dispute—those clauses can change the path to resolution.
• If the insurer delays or refuses without a reasonable basis, document all communications and consider contacting the Nevada Division of Insurance at https://doi.nv.gov for guidance or to file a complaint.