Detailed answer — what diminished value is and how claims work in Florida

When a vehicle is damaged in an accident and then repaired, its market value is often lower than it was before the crash. That loss of market value is called diminished value. In Florida, diminished value is a form of property damage claim. You can seek reimbursement for it from the at-fault driver’s insurer (or from your own insurer if you have applicable coverage and your carrier pursues subrogation).

Types of diminished value

• Inherent diminished value: The most common type — the loss in resale value because the vehicle has an accident history even after quality repairs.
• Repair-related diminished value: Value loss caused by substandard or incomplete repairs.
• Immediate diminished value: The drop in value that occurs at the moment of impact, prior to repairs.

Legal framework

Florida law treats diminished value as an element of property damage. While Florida statutes do not set a special diminished-value procedure separate from ordinary property-damage claims, insurers and courts recognize diminished value as recoverable property loss where supported by evidence. For general insurance law governing motor-vehicle coverage and claims, see Florida Statutes Chapter 627: Florida Statutes Chapter 627 (Insurance).

Step-by-step process to pursue a diminished value claim in Florida

1. Document the accident and initial condition: Right after the crash, take clear photos of all vehicle damage, the scene, and any relevant road signs or skid marks. Keep all police reports and written statements.
2. Establish pre-accident value: Gather evidence of your vehicle’s value before the accident: recent clean sale listings for comparable models, Kelley Blue Book or NADA values, service and maintenance history, and photos showing the vehicle’s condition prior to damage if available.
3. Complete repairs and collect repair records: Have the vehicle repaired by a reputable shop and keep all repair invoices, parts lists, and before/after photos. If you suspect repairs were incomplete or poor, keep records of follow-up complaints, additional invoices, or independent inspection reports.
4. Get an independent diminished value appraisal/report: Hire a qualified appraiser who issues a diminished value report explaining the vehicle’s market value before and after the accident and the methodology used. Insurers will often give more weight to a professional report than to a simple opinion.
5. Prepare a demand to the at-fault insurer: Create a clear demand package: accident documentation, repair invoices, before/after photos, pre-accident value evidence, the independent diminished value report, and a calculation showing the diminished value amount you seek.
6. Negotiate with the insurer: Submit the demand to the at-fault party’s liability insurer. Be ready to answer follow-up questions, provide additional proof, and negotiate. Insurers commonly challenge diminished value claims and may offer less than your demand.
7. If negotiations fail — next steps: Options include filing a small claims action or civil lawsuit against the at-fault driver (or their insurer if appropriate), using any appraisal or dispute resolution procedures in the policy, or hiring an attorney to press the claim. You may also file a complaint with Florida’s Office of Insurance Regulation about an insurer’s unfair claim practices, if applicable.

Evidence that strengthens a diminished value claim

• Independent diminished-value report from a recognized appraiser.
• Comparable sales (listings and sold prices) for the same make/model/year in similar condition.
• Complete repair invoices and high-quality before-and-after photos.
• Vehicle history reports (e.g., CARFAX) showing the accident entry after repair.
• Documentation of prior condition and any features/upgrades that affected pre-accident value.

Who pays and practical realities

If another driver caused the accident, the at-fault driver’s liability insurer should pay reasonable diminished-value damages. In practice, insurers often resist or undervalue these claims. If you file through your own comprehensive or collision coverage, your insurer may pay and then pursue the at-fault insurer (subrogation) — but check your policy for deductibles and whether diminished value is covered under your policy language.

Timing and deadlines

Act promptly. Preserve evidence, get appraisals and repairs completed, and submit your demand timely. If you wait too long, evidence becomes harder to obtain and the at-fault insurer may argue diminished value is unsupported. If you plan to sue, be aware of Florida’s statute of limitations for property-damage claims (consult a lawyer to confirm the correct timeframe for your situation).

When to get help

Consider legal help if the insurer flatly refuses to pay a reasonable amount, if the claim is large or complex, or if you’re unsure how to document and prove lost market value. An attorney can evaluate the strength of your evidence, calculate damages, and pursue litigation if necessary.

Helpful Hints

• Do not sign away your rights when dealing with an insurer: read release forms carefully before accepting payment.
• Get multiple value assessments when possible (KBB, NADA, local sales) to support pre-accident value.
• Choose a reputable appraisal company with experience in diminished value claims.
• Keep all original repair receipts and correspondence with insurers; organize them in a single claim packet.
• Be realistic: small cosmetic damage on an older vehicle may produce little or no recoverable diminished value.
• If you file in small claims court, verify the current monetary limit and required procedures for your county or the relevant court.
• If the at-fault insurer raises unfair settlement practice issues, you may review Florida insurance law in Chapter 627 for general rules and consider contacting the Florida Office of Insurance Regulation for guidance on complaints: https://www.floir.com/.