Detailed Answer

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.

1. Understand Diminished Value in Indiana

Diminished value is the difference between a vehicle’s market value before an accident and its value after professional repairs. Even if you restore your car to its pre-accident condition, buyers and dealerships often pay less for vehicles with an accident history.

2. Verify Coverage Under Your Policy

Review your auto insurance policy to confirm that it permits diminished value claims. Indiana’s Department of Insurance guides insurers on fair claim practices under Indiana Code § 27-4-1-18. That statute prohibits unfair settlement practices, including undervaluing a valid claim.

3. Gather Supporting Documentation

• Pre-accident value: Obtain a used car listing or appraisal from the week before the crash.
• Repair invoices: Keep all repair shop bills, parts lists and photos documenting damage.
• Diminished value appraisal: Hire an independent appraiser to estimate loss in market value.
• Insurance correspondence: Record dates and names of adjusters you speak with.

4. File Your Claim With the Insurer

Contact the at-fault driver’s insurance company. Provide a written diminished value demand that includes:

• A clear statement of the diminished value amount.
• Copies of your documentation and appraisal.
• A reference to the insurer’s duty of good faith under IC § 27-4-1-18.

5. Track Deadlines

Indiana’s general statute of limitations for property damage claims is two years from the date of the accident. See Indiana Code § 34-11-2-4. Missing this deadline can bar your right to recover diminished value.

6. Negotiate or Escalate

The insurer may counteroffer. Review their valuation alongside your appraisal. If negotiations stall, consider:

• Filing a complaint with the Indiana Department of Insurance.
• Pursuing small claims court if the amount is within the court’s limit.
• Hiring an attorney experienced in insurance disputes.

Helpful Hints

• Start documentation immediately after repairs end.
• Keep all emails, letters and phone logs with dates and names.
• Use a certified appraiser experienced in diminished value claims.
• Review your policy’s appraisal or dispute resolution clause.
• Act promptly to preserve your rights under Indiana’s two-year statute of limitations.