Detailed Answer
When you make a diminished value claim after a collision in Montana, the insurer or the at‑fault driver’s carrier evaluates how much your truck’s market value dropped because of the new accident. Prior accidents that occurred before you purchased the truck matter because they change the baseline value the insurer uses to measure that drop.
Key concepts you should understand:
- Baseline value: To calculate diminished value, an appraiser or insurer compares the truck’s market value immediately before the new collision with its market value after repairs. If prior damage already reduced the truck’s pre‑collision value, the insurer will subtract that earlier reduction from any claim tied to the new collision.
- Types of diminished value: Inherent diminished value (the loss in market perception even after quality repairs) is the most common type claimed from third‑party accidents. Diminished value from older accidents that preceded your ownership is not the same as value lost because of the new accident; insurers treat them separately.
- Burden of proof: You must show the truck’s condition and market value before the accident caused by the at‑fault driver. If the vehicle already had damage before you owned it, the insurer can argue that some or all of the current diminished value results from that earlier damage.
How prior accidents typically affect your claim
Insurers usually do one or more of the following when prior accidents exist:
- Review vehicle history reports (Carfax, AutoCheck, NMVTIS) and repair records to locate earlier accidents.
- Reduce the allowable diminished value by the amount the truck had already depreciated before the new collision. If the prior damage fully explains the truck’s lower value, they may deny a diminished value payment tied to the new crash.
- Request proof you owned a higher‑value, accident‑free truck immediately before the new collision. Without convincing evidence of a higher pre‑loss value, your claim weakens.
Practical examples (hypotheticals)
Example A: You bought a used pickup that had a bumper repair before you bought it but had a clean history on the sales listing and a recent independent inspection showing “good” market condition. After a later accident where another driver is at fault, a diminished value appraiser compares market listings and determines the new crash caused a measurable drop. You can present the pre‑accident inspection, sales listing, and vehicle history to show the prior repair did not materially reduce value, improving your diminished value claim.
Example B: You bought a truck with a recorded major frame repair from two owners ago. After a subsequent at‑fault collision, the insurer argues the truck already suffered substantial depreciation from the older repair and pays little or nothing for diminished value from the new accident. Without documentation proving the truck’s market value immediately before the new crash exceeded the recorded value, your claim will be limited.
What you should gather and present
- Vehicle history reports (NMVTIS and commercial reports such as Carfax/AutoCheck).
- Sales listing, purchase contract, or bill of sale that shows how the truck was marketed and priced when you bought it.
- Pre‑purchase inspection reports or pre‑accident photos showing condition before the new crash.
- Repair invoices and estimates for both prior and current repairs (materials, parts, labor).
- Independent diminished value appraisal or market‑based comparables (listings of similar trucks without accident history and with similar mileage).
- Police reports and the at‑fault party’s insurance information.
How to pursue the claim in Montana
- First, file a diminished value claim with the at‑fault driver’s insurer. Submit your evidence showing the truck’s pre‑accident market value and how the new collision reduced that value.
- If the insurer disputes the claim because of prior accidents, provide documentation that the prior damage either did not affect value or that the new accident caused additional loss beyond the prior damage.
- If negotiations stall, consider hiring an independent appraiser experienced in diminished value for vehicles with prior damage. Their report can isolate value loss attributable to the new crash versus prior incidents.
- If the insurer refuses to pay and you have persuasive evidence, you can pursue a civil claim. Check Montana law for deadlines and procedural rules and consider consulting an attorney to evaluate your chances and the most efficient forum (demand letter, mediated settlement, or suit).
Helpful Montana resources:
- Montana Code Annotated and legislative resources: https://leg.mt.gov/bills/mca/
- Montana Commissioner of Securities and Insurance (consumer assistance about auto insurance complaints and claim handling): https://csimt.gov/
- National Motor Vehicle Title Information System (NMVTIS) vehicle history reports: https://vehiclehistory.gov/
Helpful Hints
- Act fast: preserve photos and documents immediately after the accident and collect any pre‑purchase or pre‑accident records you have.
- Get an independent diminished value appraisal that explains how prior damage was accounted for in its methodology.
- Order multiple vehicle history reports to confirm prior damage entries and dates. NMVTIS is an authoritative federal data source for title/total loss events.
- Compare market listings for the same make, model, year, mileage, and trim with and without accident histories to demonstrate market perception.
- Keep repair invoices separated by incident (prior vs current). Insurers rely on clear timelines to allocate depreciation to the correct event.
- If the seller misrepresented the truck’s condition when you bought it, you may have a separate claim against the seller — talk with an attorney about fraud or misrepresentation claims under Montana law.
- Document all communications with insurers in writing and follow up by email so you have a paper trail.
- If an insurer denies diminished value solely because of prior accidents, request a written explanation and the valuation method they used. That helps an appraiser or attorney evaluate next steps.
Disclaimer: This article explains general information about diminished value claims in Montana. It does not provide legal advice, create an attorney‑client relationship, or replace consultation with a licensed Montana attorney. For advice about a specific claim or deadlines that apply to your situation, contact a Montana lawyer or the Montana Commissioner of Securities and Insurance.