Detailed Answer — What a diminished value quote is and how to get one in Montana
This section explains, in plain language, how to obtain an accurate diminished value estimate for a vehicle after a crash or other event that caused damage and repairs. Diminished value means the reduction in a vehicle’s market value after it has been damaged and repaired. Even if repairs are excellent, a vehicle with an accident history often sells for less than an identical vehicle with no history.
Step 1 — Confirm you have a potential diminished value claim
Work through these basics first so you know whether getting a quote is worthwhile:
- The vehicle was not a total loss. If the insurer paid a total-loss settlement, diminished value is generally not separately available because the vehicle no longer exists as a repaired unit.
- You still own the vehicle (or you had ownership at time of claim). Insurers typically pay diminished value to the owner of the vehicle whose car lost market value.
- The accident was the result of another party’s fault (or you can link the decrease in value to a covered event). If your own insurance will not pay diminished value under your policy, you may pursue the at-fault driver’s insurer.
Step 2 — Gather documentation before requesting a quote
Good documentation makes an appraiser’s work faster and the quote more defensible:
- Photos of the vehicle before the accident, at the scene, during repair, and after repair.
- Repair invoices describing work and parts used.
- Vehicle title and proof you own the car.
- Vehicle history report (Carfax, AutoCheck) showing the accident record.
- Comparable market listings for similar vehicles (same year, make, model, options, mileage) from before and after repairs if possible.
- Police report or claim number from the insurer handling the accident.
Step 3 — Choose how to get a diminished value quote
There are three common approaches:
- Independent appraiser or diminished value specialist: A professional appraiser inspects the car, reviews records and market data, and issues a written report estimating the loss in market value. Reports typically include comparable sales, photos, and calculations. This is the most defensible approach if you plan to submit a claim or negotiate with an insurer.
- Dealer or used-car market analysis: Some dealers or used-car consultants will estimate lost value by looking at wholesale and retail listings for comparable vehicles. This can be quicker but may be less detailed.
- Insurance company’s internal appraiser: The at-fault insurer may provide its own diminished value estimate after you submit your documentation. Insurer estimates often start lower than independent appraisals, so many owners obtain a separate professional report for negotiation leverage.
Step 4 — What to expect from an independent appraisal
A competent diminished value report usually:
- Says who inspected the vehicle and when.
- Lists the vehicle’s condition, mileage, options, and pre-accident value basis.
- Includes repair invoices and photographs and identifies any frame, structural, or major component repairs.
- Shows comparable sales or market data justifying the dollar reduction in value.
- Provides a clear diminished value dollar amount and an explanation of the method used.
Step 5 — Submit the quote and negotiate
Send the appraisal and supporting documents to the at-fault insurer. Include a brief cover letter that states you are requesting payment for diminished value and attach the appraisal, repair invoices, photos, and vehicle history report. Typical next steps:
- The insurer may accept the appraisal and issue payment.
- The insurer may offer a lower amount — negotiate using the appraisal’s market comparables and repair documentation.
- If the insurer denies a diminished value claim, ask for a written explanation and the company’s basis for denial.
Step 6 — If you can’t reach agreement
If negotiation stalls, options include:
- Filing a complaint with the Montana Commissioner of Securities and Insurance (consumer assistance is available): https://csimt.gov/
- Filing a claim in court (small claims court or district court depending on amount). For filing and court procedure information, see the Montana Judicial Branch: https://courts.mt.gov/
- Talking to a consumer attorney experienced with vehicle diminished value cases. If the amount sought is small, weigh the cost of legal help against likely recovery.
Timing and costs
Independent appraisal fees commonly run from about $100 to several hundred dollars depending on the provider and the depth of the report. Expect a professional appraisal to take a few days to a couple of weeks depending on scheduling and the need to gather market data. Insurer responses may take several weeks under normal claim-handling timelines.
Montana-specific considerations
Montana does not have a special diminished value statute that creates a unique process separate from general insurance and property-damage claim rules. Diminished value claims are typically handled under general property-damage and insurance-claim practices. For questions about insurer conduct or to submit a complaint about a handling unfairness, the Montana Commissioner of Securities and Insurance provides consumer guidance and a complaint process: https://csimt.gov/. For full access to Montana statutes and to research any insurance statutes that might apply, start at the Montana Legislature site: https://leg.mt.gov/.
Example (hypothetical)
Imagine you own a 2018 sedan in excellent condition. Another driver rear-ends you and their insurer pays for repairs. After repairs, you get an independent appraisal that concludes the vehicle’s retail market value dropped by $2,500 because of the accident history. You submit the $2,500 appraisal and supporting documents to the at-fault insurer. The insurer offers $800. You provide the independent appraisal and comparable-market evidence and negotiate. If negotiations fail, you can file a complaint with the Montana Commissioner of Securities and Insurance or consider court depending on the dollar amount.
Disclaimer: This is general information, educational in nature, and not legal advice. The rules that apply to a particular claim depend on your facts and the specific insurance contracts involved. For advice about your situation, consult a licensed attorney or contact the Montana Commissioner of Securities and Insurance.
Helpful Hints
- Start collecting documentation immediately after repairs: photos and invoices are the most persuasive items.
- Get an independent appraisal before you accept a repair-only resolution from an insurer; insurers often assume diminished value is lower than an independent appraiser will find.
- Use appraisers who produce written reports with comparable sales data; verbal estimates are harder to use in negotiations or court.
- Keep records of all communications with insurers (dates, names, phone calls, emails).
- If you decide to pursue a legal claim, don’t destroy original repair invoices or title documents; they may be evidence in court.
- Check the Montana Commissioner of Securities and Insurance website for consumer guides and to learn how to file a complaint: https://csimt.gov/.
- Compare more than one appraiser if cost allows; the market is not uniform and methods vary.
- If you rely on small claims court, read Montana court resources first so you understand filing fees, service requirements, and evidence rules: https://courts.mt.gov/.