Detailed answer — how diminished value claims work in Maine

“Diminished value” means the loss in a vehicle’s market value after it has been damaged and repaired following an accident. In Maine, diminished value is considered part of the property damage caused by the at-fault party. You can pursue diminished value either:

• as a third-party claim against the at-fault driver’s liability insurer, or
• in limited circumstances, as a first-party claim against your own insurer (depending on your policy language and state law).

Basic steps you should expect:

1. Document the pre-accident and post-repair condition. Collect records that show the vehicle’s market value before the crash (comparable listings, NADA/Manheim/Kelley Blue Book-type guides, dealer quotes) and all repair records, final repair invoices, and photographs showing the damage and finished repairs.
2. Get an independent diminished value appraisal. An experienced vehicle appraiser or automotive damage appraiser can prepare a diminished value report estimating the difference between pre-loss market value and post-repair market value (sometimes called “inherent diminished value”). A clear, well-supported appraisal strengthens a claim to an insurer or a court.
3. Present the claim to the at-fault insurer. Send the appraisal, repair invoices, photos, vehicle history (Carfax or similar), and any pre-accident value evidence to the at-fault driver’s insurer and demand payment for the diminished value amount. Include a short demand letter explaining the claim and attaching supporting docs.
4. Negotiate. Expect the insurer to evaluate repair quality, pre-accident value, and the appraisal method. Insurers often dispute diminished value claims or offer less than the appraiser’s figure. You may need to negotiate or submit rebuttal evidence (additional comparables, a second appraisal, expert statements).
5. If the insurer denies or undervalues the claim. You can consider filing suit in Maine civil court for property damage (including diminished value). Before suing, review timelines, court procedures, and costs. Small disputes sometimes go to District Court; larger disputes may require Superior Court. Consider talking to an attorney if the insurer refuses to pay or if the amount is substantial.

Legal context and consumer protections: Maine regulates insurance companies and prohibits unfair claim settlement practices. If you believe an insurer acted unreasonably in handling your claim, you can learn about insurer responsibilities or file a consumer complaint with the Maine Bureau of Insurance. See the Maine Bureau of Insurance consumer page: https://www.maine.gov/pfr/insurance/consumer/. For Maine insurance law, see Title 24-A (Insurance) of the Maine Revised Statutes: https://www.mainelegislature.org/legis/statutes/24-A/.

Practical notes about who pays and when:

• If the other driver is at fault and their insurer accepts liability, that insurer is responsible for property damage—this can include diminished value. The insurer may insist on repairing the car to pre-loss condition and then refuse diminished value or offer a settlement.
• Your own insurer may cover diminished value if you have certain coverages (e.g., collision) and if you file a first-party claim, but filing with your own carrier can trigger your deductible or rate changes. Read your policy and speak with your agent.
• Some insurers attempt to limit or deny diminished value by arguing repairs restored the vehicle to pre-accident condition. An independent appraisal and comparables are key to countering that argument.

Timing and deadlines: Maine has statutes and rules that affect insurance claims and civil lawsuits. If you plan to sue for property damage, you must follow the Maine rules for filing and statute-of-limitations deadlines. If you are unsure about deadlines or the strength of your claim, consult an attorney promptly to preserve your rights.

Typical evidence that supports a diminished value demand

• Independent diminished value appraisal/report explaining methodology and comparables.
• Pre-accident vehicle listings and market guides showing prior market value.
• Complete repair invoices listing parts replaced and labor performed.
• Before-and-after photos of the damage and repairs.
• Vehicle history report (Carfax or similar) to show accident history and disclosures.
• Police report and proof the other driver was at fault (if available).
• Receipts for any upgrades or recent maintenance that affect value.

How insurers typically respond and how to handle pushback

Insurers frequently:

• argue the vehicle was restored to pre-loss condition;
• dispute the appraisal method or the appraiser’s qualifications;
• offer a lower settlement based on their own valuation or internal guidelines.

How to respond:

• Provide clear, well-documented evidence (appraisal, comparables, repair invoices).
• Ask for a written explanation if the insurer denies or reduces the claim.
• If negotiations fail, consider mediation or small claims court for smaller amounts, or consult an attorney for larger losses or complex disputes.

When to consult an attorney

Talk to a Maine attorney experienced in motor vehicle property-damage claims if:

• The insurer refuses to pay a reasonable diminished value despite solid evidence;
• The diminished value amount is large relative to the vehicle’s value;
• There are disputes about fault, repair quality, or multiple insurers involved;
• You need help filing suit, negotiating a settlement, or protecting other legal rights.

An attorney can evaluate whether your diminished value claim is strong, prepare demand letters, negotiate with insurers, and represent you in court if necessary.

Helpful Hints

• File a property-damage claim promptly. Preserve all documents, photos, and communications with insurers and repair shops.
• Get at least one independent diminished value appraisal from a reputable appraiser who documents methodology and comparables.
• Keep a detailed folder (digital and paper) of pre-accident listings, maintenance records, and repair receipts to show baseline value.
• Be cautious about accepting the first offer from an insurer—insurers often start with a low offer.
• Ask whether your own policy covers diminished value before filing a first-party claim (this affects deductibles and possible rate impact).
• If the other driver’s insurer is uncooperative, you can file a complaint with the Maine Bureau of Insurance: https://www.maine.gov/pfr/insurance/consumer/.
• Record insurer communications and get denials or low offers in writing so you have a paper trail.