Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Understanding Diminished Market Value Under Michigan Law
After a car accident, your vehicle may suffer a permanent loss in resale value even when repaired to factory specifications. Under Michigan’s No-Fault Act, you can recover that loss—known as “diminished market value”—from the at-fault driver’s insurer. Michigan law defines property damage recovery to include the difference between a vehicle’s market value before and after the loss. See MCL 500.3145.
Step 1: Establish Pre-Accident Market Value
- Use industry-standard guides such as Kelley Blue Book or NADA to determine fair market value immediately before the accident.
- Obtain at least two independent valuations for accuracy.
Step 2: Obtain a Certified Post-Repair Appraisal
- Hire a qualified vehicle appraiser who specializes in diminished-value estimates.
- Request a written report detailing condition, mileage, and market comparables after repairs.
Step 3: Calculate the Diminished Market Value
Subtract the appraised post-repair market value from the pre-accident market value:
Diminished Market Value = Pre-Accident Value − Post-Repair Value
Step 4: Document Your Claim
Thorough documentation strengthens your demand. Include:
- Repair invoices and parts receipts showing work performed and parts used.
- Before/after photos highlighting damage and repair quality.
- The full appraisal report from your certified appraiser.
- A post-repair vehicle history report (e.g., CARFAX) demonstrating the accident record.
Step 5: File Within Michigan’s Time Limits
Under Michigan law, negligence claims (including diminished-value claims) generally must be filed within three years of the accident. See MCL 600.5805. Prompt notice to the at-fault insurer also helps avoid procedural disputes.
Helpful Hints
- Obtain multiple pre-accident valuations to support your baseline value.
- Keep all records in a single, organized folder or digital file.
- Schedule your diminished-value appraisal after repairs settle to capture realistic market value.
- Use a local appraiser familiar with Michigan market conditions.
- Follow up in writing with the insurer to confirm receipt of your claim materials.
- Consider consulting a Michigan attorney if the insurer undervalues or denies your claim.