Detailed Answer
Short summary: After a crash in New Hampshire, a diminished value claim asks for the difference between your vehicle’s market value before the crash and its market value after repairs. You can seek payment from the at-fault driver’s liability insurer (preferred) or, if you used your own collision coverage, through your insurer with later subrogation. Success depends on evidence of actual loss in market value, timely notice, and clear documentation.
What “diminished value” means
Diminished value is the reduction in a vehicle’s resale or trade-in value because it has a damage history, even after high-quality repairs. Two common categories are:
- Inherent diminished value: Loss of value simply because the vehicle has a collision history (most common).
- Repair-related diminished value: Loss caused by substandard repairs, unrepaired damage, or structural/frame damage.
Who to claim against in New Hampshire
New Hampshire drivers injured in collisions normally pursue a property-damage claim against the at-fault driver’s liability insurer. If you used your own collision coverage to get repairs done, your insurer may pay under your policy and then try to recover (subrogate) from the at-fault insurer.
Step-by-step claim process
- Secure evidence right away: Take clear photos of the damage from multiple angles before and after repairs. Keep all repair invoices, parts invoices, and the final repair order.
- Document pre-loss value: Gather proof of market value before the crash: recent comparable sales, trade-in offers, Kelley Blue Book or NADA values, prior listings, and mileage records.
- Get a professional diminished value appraisal: Hire an independent appraiser familiar with diminished value methodology or obtain multiple comparable market listings showing the drop in value. Many appraisers provide a written report you can send to the insurer.
- Make a demand to the at-fault insurer: Send a concise demand letter and include photos, repair bills, the appraisal, and market-value comparisons. Demand letters should state the dollar amount you seek and the basis for that number.
- Negotiate: The insurer may accept, deny, or counter. Expect questions and requests for documentation. Be firm but factual—insurers often negotiate down without strong proof.
- If denied or undervalued: Consider filing a complaint with the New Hampshire Insurance Department (they can review insurer handling of claims) or pursue a civil claim in court. For smaller amounts, small claims in state district or municipal court may be appropriate; larger claims go to the superior court.
Timing and deadlines
Notify insurers promptly after the accident. While specific policy notice requirements vary, waiting too long may jeopardize your claim. If you intend to sue for property damage, New Hampshire has statutory time limits for filing civil claims—check official state resources or consult counsel promptly to learn any applicable deadlines.
Evidence that helps win a diminished value claim
- Detailed repair invoices and parts lists showing replaced or repaired structural components.
- Independent diminished value appraisal with method explained and comparable sales.
- Vehicle history report (Carfax, AutoCheck) showing the accident entry.
- Pre-accident documentation of condition and value: photos, service records, recent resale listings.
- Estimates or quotes that demonstrate market comparables for similar undamaged vehicles.
Potential insurer defenses
Insurers commonly dispute diminished value claims by arguing:
- The vehicle’s market value after repair is equal to value before the crash.
- Poor maintenance or pre-existing damage caused any value reduction.
- Inherent diminished value is not compensable under the policy or state practice (though this varies by case and insurer).
When to get an attorney
Consider hiring a lawyer if:
- The insurer denies liability for the accident.
- They refuse to pay a reasonable diminished value despite strong evidence.
- The claim value is large enough that litigation costs are justified.
- You face complex questions about comparative fault or multiple insurers.
Where to get help in New Hampshire
- New Hampshire Insurance Department — consumer information and how to file a complaint: https://www.nh.gov/insurance/consumers/index.htm
- New Hampshire Revised Statutes (state laws) — find statutes and legal information: https://www.gencourt.state.nh.us/rsa/html/
- New Hampshire Judicial Branch — small claims and civil court self-help resources: https://www.courts.state.nh.us/selfhelp/
Helpful Hints
- Act quickly: take photos and save all repair records immediately after repairs finish.
- Get an independent diminished value appraisal early—insurers respect formal appraisals more than informal estimates.
- Keep communication written: email or certified letters create a paper trail that helps in disputes.
- Do not accept the first low offer without asking for the insurer’s valuation method and supporting data.
- If you used your own collision coverage, ask your insurer whether they will pursue subrogation against the at-fault insurer and whether you must cooperate.
- If the at-fault insurer delays or denies, file a complaint with the New Hampshire Insurance Department before considering court—regulators can sometimes speed resolution.
Disclaimer: This article is for general informational purposes only and is not legal advice. Laws and procedures change and individual cases vary. Consult a licensed New Hampshire attorney for advice about your specific situation or contact the New Hampshire Insurance Department for consumer assistance.