How to Calculate and Document Diminished Market Value of a Vehicle After Repairs in Utah

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance on your specific situation.

Detailed Answer

After a car accident in Utah, even professionally repaired vehicles often suffer a diminished market value—the difference between a car’s pre-accident value and its post-repair resale value. Utah law allows accident victims to recover this loss as part of their property damage claim under general negligence principles (see Utah Code § 78B-6-801).

1. Determine Pre-Accident Value

  • Use reputable pricing guides (e.g., Kelley Blue Book or NADA).
  • Adjust for mileage, options, maintenance history, and local market trends.

2. Obtain Post-Repair Value

  • Secure an independent appraisal from a certified auto appraiser.
  • Compare sale prices of similar makes/models with accident history flagged on vehicle history reports (e.g., CARFAX).

3. Calculate Diminished Value

  1. Subtract the appraiser’s post-repair value from the pre-accident value.
  2. Document the calculation: Pre-Accident Value – Post-Repair Value = Diminished Market Value.

4. Document and Present Your Claim

  • Gather repair invoices detailing parts and labor.
  • Include the independent appraisal report and vehicle history printouts.
  • Obtain written statements from local dealers or resale experts, if possible.
  • Keep all correspondence with insurance companies.

5. Negotiate or Litigate

  • Submit a written demand letter with your documentation to the at-fault driver’s insurer.
  • If the insurer refuses payment, you may file a small claims action (for claims under $11,000) or a civil lawsuit in district court for higher amounts.

Helpful Hints

  • Act promptly: Appraisals and market conditions change over time.
  • Use photographs: Show repair quality and any remaining blemishes.
  • Get multiple appraisals: Bolster credibility with two or more independent opinions.
  • Keep records organized: A clear file expedites negotiations and court filings.
  • Consult a Utah attorney when the insurer undervalues your loss or denies liability.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.