Detailed Answer
What Is Diminished Value? After a collision, a repaired vehicle often sells for less than an undamaged one. That difference is called diminished value. In Minnesota, you may recover this loss from the at-fault driver’s insurer.
Relevant Minnesota Statutes
- Minn. Stat. §65B (Auto Insurance and No-Fault Law)
- Minn. Stat. §72A.20 (Unfair Claim Settlement Practices)
Step 1: Document the Damage
Get a detailed repair estimate and keep all invoices. Include photos of pre-repair damage from multiple angles and the vehicle’s pre-accident condition (e.g., mileage, maintenance records).
Step 2: Hire a Qualified Appraiser
Work with an independent diminution appraiser. A licensed automotive appraiser can prepare a formal report stating your vehicle’s pre-loss market value, post-repair value, and the diminished value amount.
Step 3: Draft a Diminished Value Demand
Write a demand letter addressed to the at-fault driver’s insurance adjuster. Include:
- Policy number and claim number (if assigned).
- Copy of repair estimate and invoices.
- Appraiser’s diminished value report.
- Photos before and after repair.
- Deadline for response (usually 30 days).
Step 4: Send via Certified Mail
Mail your demand packet by certified mail with return receipt. This provides proof of delivery and triggers insurer obligations under Minn. Stat. §72A.20.
Step 5: Follow Up and Negotiate
Insurers often respond with a settlement offer below your demand. Review any counteroffer, provide clarifying documents if needed, and negotiate to a fair amount.
Step 6: Escalate if Necessary
If the insurer unreasonably delays or denies your claim, file a complaint with the Minnesota Department of Commerce, Consumer Assistance. You may also consider small-claims court for claims up to $15,000.
Disclaimer: This article provides general information under Minnesota law. It does not constitute legal advice. Consult an attorney for advice on your specific situation.
Helpful Hints
- Request a pre-loss vehicle valuation from at least two sources (e.g., Kelley Blue Book, CARFAX).
- Keep all communication in writing and track dates.
- Note Minnesota no-fault limits if filing related first-party PIP claims (Minn. Stat. §65B.49).
- Check your policy for subrogation clauses that may affect your recovery.
- Use a timeline spreadsheet to record repair and correspondence milestones.