Understanding Diminished Value and How to Get a Quote in Kentucky

Detailed Answer — What diminished value is and the step‑by‑step process to get a quote

After a crash, even a perfectly repaired vehicle can be worth less than it was before the accident. That loss in market value is called “diminished value.” In Kentucky, owners can often seek payment for diminished value from the at‑fault driver’s insurer (a third‑party claim). The insurer for the at‑fault party may be legally required to consider fair compensation for property damage, including diminished value, under Kentucky insurance laws and consumer protections. For general information about Kentucky insurance rules, see KRS Chapter 304: Insurance on the Kentucky Revised Statutes website: https://apps.legislature.ky.gov/statutes/. For consumer guidance and to file complaints about insurers, see the Kentucky Department of Insurance: https://insurance.ky.gov/.

Step‑by‑step: How to get a diminished value quote in Kentucky

1. Confirm who is at fault and which insurer to contact. If another driver caused the crash, you normally present a diminished value demand to that driver’s liability insurer. If you are using your own collision coverage, check whether your policy covers diminished value (many do not) and whether your insurer will pursue a subrogation claim against the at‑fault insurer.
2. Gather vehicle identity and pre‑loss information. Record the vehicle year, make, model, trim, mileage, VIN, and any recent upgrades or documented damage prior to the accident. Collect pre‑accident listings or valuations (Kelley Blue Book, NADA, local market listings) to show the car’s market value before the crash.
3. Document the accident and repairs. Keep the police report, photos of the damage, before/after photos, the repair order, itemized repair invoices, and receipts for any replaced parts. If repairs were done, get a final inspection report and photos showing completed work.
4. Obtain a diminished value appraisal or market analysis. Hire an independent appraiser who regularly performs diminished value appraisals. A good appraiser will: examine the vehicle and repair documents; research comparable sales for similar undamaged vehicles; use accepted valuation methodology; and prepare a written report stating the diminished value figure and supporting market data. Expect the appraisal process to take several days to a few weeks depending on availability and the amount of documentation.
5. Prepare a demand package for the at‑fault insurer. The package should include a concise demand letter, the appraiser’s report, pre‑loss and post‑loss market evidence, repair invoices, photos, and the police report. State the dollar amount you seek and the basis for that number.
6. Submit the demand and keep records of all communications. Send the demand by a trackable method (certified mail or email with delivery receipt) and note the date of submission. Insurers will acknowledge and investigate; response times vary. Follow up in writing if you do not get a timely reply.
7. Negotiate or escalate if needed. Insurers may accept your appraisal, make a counteroffer, or deny the claim. If the insurer denies or undervalues, you can: obtain a second appraisal, request appraisal/arbitration if available under the policy, sue in court (small claims or civil depending on amount), or hire an attorney experienced in Kentucky insurance/property claims.

What to expect from the appraiser and how fees work

Appraisers charge varying fees. Expect a range depending on scope, typically anywhere from a few hundred dollars for a basic market analysis to more for a full appraisal. Ask for credentials, examples of prior diminished value reports, and whether the appraiser is familiar with local Kentucky markets. Keep receipts and invoices to include in your demand package.

How Kentucky law affects diminished value claims

Kentucky’s insurance laws and rules governing insurer conduct are found in the Kentucky Revised Statutes (KRS) and related regulations under KRS Chapter 304 (Insurance). The Department of Insurance oversees insurer behavior and handles consumer complaints. If an insurer refuses to investigate or pay legitimate claims, you may have remedies under state insurance law or through the Department of Insurance complaint process: https://insurance.ky.gov/. Because statutes and case law can affect deadlines, burdens of proof, and remedies, consult an attorney promptly if the insurer disputes your entitlement.

Timing and practical tips

• Get your diminished value appraisal soon after repairs are complete. Market evidence fades over time.
• Keep careful records of all expenses and communications. Insurers respond better to organized, professional demands.
• If your own insurer paid for repairs and then sought recovery from the at‑fault insurer, you may have subrogation considerations. Ask your insurer how diminished value fits into that process.

When to hire an attorney in Kentucky

If the at‑fault insurer denies clear evidence of diminished value, delays unreasonably, or offers a lowball settlement, consider hiring a lawyer who handles property damage and insurance claims. An attorney can evaluate your legal options, draft and send demand letters, pursue negotiations, prepare litigation if necessary, and advise about state deadlines. If the amount in dispute is small, small claims court may be an option that does not require an attorney, but an attorney can help when liability or valuation is contested.

Helpful Hints

• Take high‑quality photos of the vehicle from multiple angles before and after repairs.
• Preserve all repair invoices and parts receipts; itemized invoices help show the scope of damage.
• Obtain comparable vehicle listings (same year, make, model, trim, mileage) from local sources to support your market value claim.
• Choose an appraiser with diminished value experience and request a written report you can submit to the insurer.
• Send your demand by certified mail or another method that gives proof of delivery; keep copies of everything you send.
• File a complaint with the Kentucky Department of Insurance if the insurer engages in unfair claim settlement practices: https://insurance.ky.gov/.
• Act promptly. Market value evidence becomes harder to establish months or years after the accident.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. I am not a lawyer. Laws and procedures change and may vary depending on the facts of a particular case. For advice about your specific situation and deadlines in Kentucky, consult a licensed Kentucky attorney or contact the Kentucky Department of Insurance: https://insurance.ky.gov/.