Disclaimer: This is educational information only and not legal advice. For advice about your specific situation, consult a licensed Maryland attorney.
Detailed answer: How to get a diminished value appraisal for your vehicle in Maryland
Diminished value is the loss in a vehicle’s market value that can occur after it is damaged and repaired. In Maryland you can pursue a diminished value claim against the at-fault driver’s insurer (or your own insurer if applicable). The process centers on obtaining a credible, well-documented appraisal that shows the vehicle’s value before and after the accident.
Step 1 — Act quickly and preserve documentation
- Report the claim to the at-fault insurer promptly and keep the claim number.
- Keep all repair estimates, final repair invoices, and receipts for parts and services.
- Take and save clear photos: overall vehicle shots, close-ups of damage before and after repairs, and pictures of repaired panels showing seam lines, paint differences, or replacement parts.
- Order a vehicle history report (e.g., Carfax) to document the condition and prior history.
Step 2 — Choose the right appraiser
Look for an appraiser with experience valuing post-repair diminished value. Good qualifications include:
- Automotive appraisal credentials (examples: ASA, IAA, CVA or similar). Look for appraisers who list diminished value reports as a service.
- Experience with market-based valuation and familiarity with your vehicle make/model and local market.
- Willingness to explain their methodology and provide a written, evidence-backed report you can submit to an insurer or a court.
Step 3 — What the appraisal should include
A strong diminished value appraisal typically contains:
- A clear statement of the appraiser’s qualifications and scope of work.
- Identification of the vehicle (VIN, year, make, model, mileage at time of appraisal).
- Documentation of pre-accident condition (market comparables, prior listings, dealer values) and of post-repair condition (photos, repair invoices).
- A valuation methodology (most appraisers use a market/sales-comparison approach; some discuss cost-to-repair and other factors). The report should explain adjustments made and show the math leading to a diminished value dollar figure.
- Copies or links to supporting evidence: comparables, repair records, vehicle history report, and photographs.
- Signed and dated conclusions and a contact for follow-up questions.
Step 4 — Common valuation approaches
Appraisers commonly use one of these approaches (or a combination):
- Sales-comparison (market) approach: compare sale prices for similar vehicles with and without accident history.
- Economic loss approach (difference in market value before and after repairs).
- Some insurers use formula-based methods (e.g., percentage-of-value formulas). These are not universal and often understate loss; an independent appraisal can rebut a low insurer valuation.
Step 5 — Submit the report and negotiate
- Send the appraisal and supporting documents to the at-fault insurer. Keep copies and proof of delivery.
- Expect the insurer to respond with questions, a counter-offer, or a request for an independent inspection by their appraiser. Be prepared to explain and defend the appraisal’s methodology.
- Negotiate. Many diminished value claims settle without litigation if you have a clear independent report.
Step 6 — If the insurer refuses to pay
- File a complaint with the Maryland Insurance Administration if you believe the insurer acted unfairly: https://insurance.maryland.gov/Consumer/Pages/complaints.aspx
- Consider small claims or civil court if negotiations fail. The Maryland District Court provides information on filing a civil claim and small claims procedures: https://www.courts.state.md.us/district/civil
- Before filing suit, calculate your total losses and compare them to filing costs. An attorney can advise whether the claim justifies litigation.
Step 7 — When to consult an attorney
Talk to a Maryland attorney if:
- The insurer denies responsibility for the accident but liability seems clear.
- The insurer offers a low settlement despite a strong appraisal.
- Your diminished value amount is substantial or you plan to sue.
Helpful hints
- Get the appraisal after repairs are complete. Appraisals based on temporary or inaccurate repairs are weaker.
- Retain original repair invoices and any warranty information. These strengthen the connection between the accident and any remaining loss in value.
- Use local market comparables. Vehicle value varies by region; Maryland-specific comparables carry more weight.
- Keep a repair timeline and a log of communications with insurers and repair shops.
- Beware of overly cheap “appraisals.” A low-cost report that lacks documentation will carry little weight with insurers or courts.
- Ask the appraiser whether they will testify if the claim goes to court. That may affect fees and the weight of the report.
- If you have collision coverage and used it, check your policy for subrogation and how a diminished value claim interacts with your deductible and premiums.
For more information on consumer protections and how to file complaints with Maryland regulators, visit the Maryland Insurance Administration: https://insurance.maryland.gov/ and for court process and filing information visit the Maryland Judiciary: https://www.courts.state.md.us/.
Final note: This article explains the typical steps Maryland vehicle owners take to obtain and use a diminished value appraisal. It does not replace legal advice. Contact a licensed Maryland attorney to discuss your rights and options for your specific vehicle and accident.