Quick answer

Diminished value is the loss in a vehicle’s market value after it has been damaged and repaired. To get a reliable diminished value quote in Arkansas, gather the repair estimates and invoices, photos, the vehicle’s history and mileage, and an appraisal from a qualified diminished-value appraiser or an independent appraisal company. Submit that documentation to your insurer (or the at-fault insurer) and request a written diminished value offer. If the insurer denies or undervalues the claim, consider a second appraisal, a demand letter, or small claims court or consult an attorney.

Detailed answer — step-by-step process

1. Understand what “diminished value” means

Diminished value is the difference between a vehicle’s fair market value immediately before an accident and its fair market value immediately after repairs. There are three common types recognized by appraisers and insurers:

• Inherent diminished value — loss in value because a vehicle has an accident history even after perfect repairs.
• Repair-related diminished value — when repairs are incomplete or use inferior parts and the vehicle’s value is reduced as a result.
• Immediate diminished value — the loss in value immediately following the damage, before repair.

2. Confirm you have a viable diminished value claim

In Arkansas you may pursue diminished value from the at-fault party’s insurer or, depending on your own policy, your insurer may have options. Insurers generally consider diminished value claims, but how they evaluate them varies. If you were not at fault, you typically submit your diminished value claim against the at-fault driver’s liability insurer.

3. Gather essential documents and evidence

Organize the following before asking for a quote:

1. Police report or accident report (if available).
2. Repair estimate(s) and final repair invoices showing parts and labor used.
3. Before-and-after photos of vehicle damage and repairs.
4. Vehicle title and registration information and current mileage.
5. Vehicle history report (e.g., CARFAX) showing the incident (useful to show future buyers will see an accident record).
6. Comparable vehicle listings (same make/model/year/mileage) to support market-value arguments.

4. Get an independent diminished value appraisal

Insurance companies often accept an appraisal from an independent diminished value appraiser. Typical steps:

• Hire an appraiser who specializes in diminished value or an auto appraiser familiar with Arkansas market values.
• The appraiser inspects the vehicle, reviews repair records and photos, and uses recognized methods (market comparison, cost to cure, or formula-based approaches) to estimate diminished value.
• You receive a written diminished value report and a dollar-figure quote you can present to the insurer.

5. Submit your diminished value quote and supporting documentation to the insurer

Send a formal written claim (email or certified mail) to the at-fault driver’s insurer that includes:

• Demand for diminished value payment with the appraiser’s written report and quote.
• Repair invoices, photos, vehicle history report, and comparable listings.
• A clear deadline for response (commonly 15–30 days).

6. Review the insurer’s response and negotiate if needed

The insurer may accept, dispute, or offer a lower amount. If the offer is lower than the appraisal, you can:

• Request a written explanation of how the insurer calculated their offer.
• Provide additional supporting evidence (more comps, a second appraisal, documentation of repairs).
• Negotiate directly with the insurer; many cases settle through negotiation.

7. If negotiations fail, consider formal steps

If you cannot resolve the claim:

• File a complaint with the Arkansas Insurance Department (consumer protection and guidance): https://insurance.arkansas.gov.
• Consider small claims court for smaller diminished-value amounts (limits and procedures vary; check local court rules).
• Consider hiring an attorney if the claim is large or the insurer refuses a reasonable settlement.

8. Accepting payment and documenting the resolution

If you accept an offer, get the payment and a written release that is narrowly tailored to avoid releasing unrelated claims (e.g., future injury claims). Keep all records of the demand, appraisals, correspondence, and the settlement for your files and future resale of the vehicle.

Arkansas-specific considerations

Arkansas regulates insurance companies and has consumer resources through the Arkansas Insurance Department. If you suspect an insurer acted in bad faith or engaged in unfair claim practices, you can report it to the Arkansas Insurance Department for investigation. For general information about Arkansas laws and codes, the Arkansas Legislature’s website is a central resource: https://www.arkleg.state.ar.us. For insurance consumer resources: https://insurance.arkansas.gov/consumers/.

Note: This article explains practical steps and common approaches. Insurance statutes and case law affect claims handling and remedies; consult the Arkansas Insurance Department or a lawyer for legal interpretation of specific statutes or disputed conduct by an insurer.

Common methods appraisers use to produce a diminished value quote

Appraisers may use one or more of the following:

• Comparable sales (market approach): compare similar undamaged vehicles to your repaired vehicle.
• Cost-to-cure (repair-related): estimate the loss if repairs are incomplete or improper.
• Formula approach (e.g., some industry calculators): apply mileage and severity multipliers to the vehicle’s pre-loss value.

Helpful Hints

• Start documentation immediately: take clear photos of damage and repairs as soon as possible.
• Keep all invoices and receipts from the repair shop; detailed invoices help appraisers and insurers.
• Order a vehicle history report to show the accident will appear to future buyers; this supports diminished value claims.
• Use a qualified diminished-value appraiser. An appraisal that follows accepted methods is harder for an insurer to reject without a detailed rebuttal.
• Ask for a written explanation if the insurer denies or makes a low offer. Request the insurer’s damage evaluation and method of calculation in writing.
• Be aware of deadlines: file your diminished value claim promptly after repairs—delays can weaken your position.
• Check Arkansas small claims limits and procedures if you plan to file suit without an attorney.
• If you suspect unfair claim handling, contact the Arkansas Insurance Department: https://insurance.arkansas.gov/complaints/.