What is “diminished value” and why get an appraisal?

Diminished value means the loss in a vehicle’s market value after it has been damaged and repaired. Even high-quality repairs may not fully restore a vehicle to its pre-accident market value. An appraisal documents that loss in value so you can present an evidence-based claim to the at-fault driver’s insurer (or to your own insurer if your policy or jurisdiction allows).

Types of diminished value appraisals

• Inherent diminished value: Market stigma simply for having been in an accident, even if repairs were perfect.
• Repair-related diminished value: When repairs are incomplete, use non‑OEM parts, or leave visible signs of damage.
• Immediate diminished value: The difference between pre-loss retail value and the vehicle’s value immediately after the loss but before repairs.

Step-by-step process to get a usable appraisal in North Dakota

1. Collect all documentation before you hire an appraiser.

   Gather the police report (if any), photos of the damage, vehicle title/registration, pre-accident photos (if available), repair estimates, final repair invoices, work order and parts lists, the vehicle’s mileage, and any prior damage or accident history (Carfax or similar report).

2. Choose a qualified, independent appraiser.

   Look for credentials and experience with diminished-value work. Good signs: ASA (Accredited Senior Appraiser), certified automotive appraisers, ASE-certified technicians who do appraisals, or members of recognized appraisal associations (for example, International Automotive Appraisers Association). Ask whether the appraiser follows USPAP (Uniform Standards of Professional Appraisal Practice) or other recognized standards and whether they provide a written, market-based report suitable for insurance and court use.

3. Make sure the appraisal report contains critical elements.

   A strong diminished-value report should include:

   • VIN, year, make, model, trim, and mileage.
   • Pre-loss condition statement and evidence (photos, maintenance records).
   • Detailed description of the damage and repairs, including parts used (OEM vs aftermarket) and repair invoices.
   • Market analysis showing pre-loss fair market value (comparable sales, trade-in listings, retail guides) and post-repair market value.
   • Calculation showing the difference (diminished value) and the appraiser’s methodology and assumptions.
   • Photos of the vehicle before and after repair, and of any unrepaired or cosmetically evident items.
   • Statement of qualifications and a signed declaration that the appraiser’s opinion is unbiased and based on professional standards.
4. Request a written, dated appraisal with a clear numeric diminished-value figure.

   Oral opinions are weak evidence. A written report that clearly explains the method and cites comparable sales carries more weight with insurers, dispute resolution panels, and courts.

5. Submit the appraisal with a demand to the at-fault insurer.

   Include a cover letter, copies of repair invoices, photos, the police report, and the appraisal. State the amount you seek and a reasonable deadline for response. Keep copies and send by certified mail or another trackable delivery method.

6. If the insurer denies or undervalues the claim, decide next steps.

   Options include informal negotiation, hiring a lawyer, filing a complaint with the North Dakota Insurance Department, arbitration (if available), or filing suit in civil or small claims court. Keep in mind timelines; act promptly.

What to expect on cost and timing

Appraisal fees vary by provider and complexity. Typical independent diminished-value appraisals commonly range from roughly $150 to $600 or more. Turnaround time often runs from a few days to two weeks, depending on whether the appraiser must research comparables or inspect the vehicle in person.

How insurers usually respond (practical notes)

• Insurers evaluate diminished value claims differently. A third-party at-fault insurer is more often responsible for diminished value than your own insurer, though policy language matters.
• Some insurers dispute inherent diminished value or argue your vehicle’s market value was minimal. A solid, market-based appraisal helps you overcome generic denials.
• If you accept a total-loss settlement, diminished value is generally rolled into the settlement amount; for repaired vehicles you must present the diminished value claim separately.

If the insurer won’t pay: complaint and court options in North Dakota

If you cannot resolve a claim by negotiation, you can file a complaint with the North Dakota Insurance Department or pursue the matter in court. The North Dakota Insurance Department provides consumer assistance and complaint filing information:

North Dakota Insurance Department

To review North Dakota statutes and insurance laws, use the North Dakota Century Code search page:

North Dakota Century Code (searchable)

For information about filing in state courts and small claims procedures, see the North Dakota court system:

North Dakota Courts

Evidence tips: what strengthens an appraisal and claim

• High-quality, dated photos of the vehicle from multiple angles before and after repair.
• Complete repair invoices showing parts and labor.
• Comparable listings and sales showing market prices for similar vehicles in similar condition.
• A vehicle history report (Carfax or similar) showing the accident and any prior claims.
• An appraisal that explains the method used and includes a market comparison section.

Helpful Hints

• Do not delay. Gather evidence and order an appraisal while the accident and repairs are fresh in the market record.
• Keep thorough records of all communication with insurers—dates, names, and summaries of conversations.
• Use an appraiser who will provide a USPAP-style or similarly detailed, signed report; insurers and courts value clear methodology.
• If the at-fault insurer denies responsibility, file a complaint with the North Dakota Insurance Department before pursuing litigation. Consumer complaint procedures can create regulatory pressure on insurers.
• Consider a consultation with a North Dakota attorney if the claim is large or the insurer refuses a reasonable settlement. An attorney can explain your rights under North Dakota law, advise on deadlines, and help prepare a demand or suit.