Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
What Is Diminished Market Value?
Diminished market value is the difference between your vehicle’s market value immediately before an accident and its market value after professional repairs. Even when repairs restore your car’s functionality, the accident history can lower its resale price.
Missouri Law on Diminished Market Value
Under Missouri law, owners may recover the additional loss in value as part of property damage. The general measure for tangible personal property is set by Mo. Rev. Stat. § 537.060. For motor vehicles specifically, see Mo. Rev. Stat. § 537.066, which defines diminished value as the market-value reduction exclusive of repair costs.
How to Calculate Diminished Market Value
- Establish Pre-Accident Value: Use industry guides such as Kelley Blue Book or NADA. Document this with printouts or certified appraisals.
- Obtain Repair Estimate: Secure a detailed repair invoice from a licensed body shop showing parts and labor costs.
- Find Post-Repair Value: After repairs, hire an independent appraiser to estimate current market value, considering age, mileage and accident history.
- Perform the Calculation: Subtract the post-repair appraised value from the pre-accident market value. For example, if pre-accident value was $12,000 and post-repair value is $10,500, diminished value equals $1,500.
Documenting Your Claim
Collect and organize the following documents:
- Pre-accident valuation reports (KBB, NADA or independent appraisal)
- All repair shop estimates and final invoices
- Independent appraiser’s post-repair report
- Clear photos of vehicle damage and post-repair condition
- Comparable listings (e.g., dealer ads for similar vehicles without accident history)
Submitting Your Claim
Send a written demand package to the at-fault driver’s insurer. Include a cover letter outlining your claim, referencing Mo. Rev. Stat. § 537.066, and attach all documentation. Use certified mail and retain delivery receipts.
If the insurer denies or undervalues your claim, you may file an action in small claims court (up to $5,000) or consult a property-damage attorney for higher-value disputes.
Helpful Hints
- Obtain at least two independent appraisals for accurate market-value estimates.
- Use reputable valuation guides like Kelley Blue Book or NADA.
- Take clear photos of pre- and post-repair conditions from multiple angles.
- Keep detailed repair invoices, including parts, labor and paint work.
- Send all communications via certified mail to establish a clear paper trail.
- Consider consulting a property damage attorney if your claim is complex or exceeds $5,000.