How to Get a Diminished Value Quote in New York

Detailed answer — What diminished value is, who can claim it, and the step‑by‑step process to get a quote

What is diminished value?
Diminished value is the loss in a vehicle’s market value caused by an accident and subsequent damage history, even after repairs are completed. In New York, a vehicle owner may seek compensation for diminished value from a third‑party at‑fault driver (or that driver’s insurer). If you are pursuing a first‑party (your own) insurer, your policy language and state regulation will control rights and remedies.

Who can request a diminished value quote?
Generally the vehicle owner (or an owner’s representative) may request an appraisal or independent valuation to quantify diminished value. If another driver caused the accident, you may demand diminished value from that driver’s insurer as part of a property damage claim.

Key legal backdrop (New York)
New York regulates insurer claim handling and consumer protections through state Insurance Law and Department of Financial Services rules. For background on the state insurance laws and consumer protections, see the New York Insurance Law index: https://www.nysenate.gov/legislation/laws/INS and the New York Department of Financial Services consumer pages: https://www.dfs.ny.gov/consumers.

Step‑by‑step: How to get a diminished value quote

1. Gather basic documentation.
   • Vehicle information: year, make, model, VIN, mileage at time of loss.
   • Proof of ownership and current registration.
   • Repair estimate(s) and final repair invoice(s).
   • Pre‑loss photos (if available), and post‑accident and post‑repair photos showing damage and repairs.
   • Vehicle history report (Carfax, AutoCheck) and any prior damage history.
2. Obtain one or more independent diminished‑value appraisals or market valuations.

   Contact a licensed auto appraiser or a firm that prepares diminished value reports. Appraisers typically use one or a combination of methods: market comparables (how similar vehicles with damage history sell), published valuation guides adjusted for damage, and proprietary formulas. Ask the appraiser for a written report showing methodology and supporting data.

3. Request a written diminished value quote from the at‑fault insurer.

   If another driver is at fault, send a written demand (email + certified mail can help create a record) attaching the appraisal, repair invoices, photos, and valuation support. State clearly the amount you seek and your deadline for response. Keep copies of all correspondence.

4. Be prepared for insurer responses and their own valuation.

   Insurers may accept the appraisal, offer less, or request additional information. Many insurers use in‑house formulas or third‑party valuation services that can yield lower amounts than independent appraisals. You may negotiate; provide market comps or dealer quotes showing lower resale price for repaired vehicles.

5. If you cannot agree, explore dispute resolution.

   Options include a structured appraisal clause if present in a policy, filing a complaint with the New York Department of Financial Services, filing a demand in small claims court (if amount and jurisdiction fit), or hiring an attorney to pursue a civil claim for property damage.

Typical timeline and costs

Appraisal or diminished value reports often take several days to a few weeks depending on the appraiser’s workload and the complexity of the vehicle’s damage. Appraisal fees vary—expect a few hundred dollars for a typical report. Negotiation with an insurer can take weeks. If you escalate to court or regulatory complaint, timelines expand accordingly.

Hypothetical example (illustrative)

Jane owns a 2018 sedan with 40,000 miles. Another driver hits her car; repairs cost $4,500. Jane obtains a diminished value appraisal that concludes the car’s resale value is reduced by $3,200 because buyers discount accident history. Jane sends a written demand to the at‑fault driver’s insurer with the appraisal and repair records. The insurer replies with a written offer of $1,200. Jane negotiates and obtains $2,500, or she prepares to file a complaint with the NY DFS or pursue small claims for the balance.

What if the insurer denies diminished value or refuses to pay?

• Review the insurer’s denial reason and your supporting evidence.
• File a complaint with the New York Department of Financial Services if the insurer engaged in unfair claim practices: https://www.dfs.ny.gov/consumers/file_complaint.
• Consider small claims court for amounts within the local small claims limit (check county rules): https://www.nycourts.gov/courthelp/SmallClaims.shtml.
• Consult a vehicle/property damage attorney if the amount is substantial or the legal issues are contested.

Practical note: Diminished value claims depend heavily on documentation and convincing market evidence. Clear, timely, and well‑supported demands increase chances of a fair offer.

Helpful hints — practical tips to improve the chance of a good diminished value quote

• Start documenting immediately: take photos at the accident scene, before repairs, and after repairs.
• Keep original repair invoices and parts lists. Note whether repairs used genuine OEM parts.
• Get at least one independent diminished value report that explains its methodology and cites sale comparables.
• Obtain a vehicle history report to show that the accident was added to the car’s title history or record.
• When dealing with insurers, make written demands and keep a clear record of names, dates, and phone calls.
• Be cautious about signing waivers or release language that might bar later diminished value claims before you fully understand the scope of the release.
• If the insurer offers a combined settlement for repairs and diminished value, ask for a written itemization of how the payment was allocated.