Disclaimer: This article is for educational purposes and is not legal advice. Consult a licensed attorney for guidance on your specific situation.
Detailed Answer
A diminished value claim seeks compensation for the difference between your vehicle’s market value before a covered loss and its value after repairs. In Ohio, you can pursue a first-party diminished value claim under your own collision or comprehensive coverage or a third-party claim against the at-fault driver’s insurer.
1. Understand Ohio’s Legal Framework
Ohio law recognizes diminished value through the insurance contract and common law. If your insurer and you cannot agree on value, you may invoke the appraisal clause in your policy. Ohio Revised Code § 3937.18 allows appraisal of property damage when the insurer and insured dispute the amount of loss. Review your policy’s appraisal section for specific steps and deadlines. (ORC 3937.18)
2. Gather Key Evidence
• Pre-accident market value: Obtain comparable vehicle listings (e.g., Kelley Blue Book, NADA Guide).
• Repair details: Keep itemized estimates, final invoices and photos of damage and repairs.
• Vehicle history report: Show the accident entry on Carfax or AutoCheck to demonstrate lasting loss.
3. Get a Professional Diminished Value Appraisal
Hire an independent, certified appraiser who specializes in diminished value. A qualified appraisal report should state the before-and-after value difference and explain the methodology. Insurers often accept reports from recognized appraisal firms or state-licensed appraisers.
4. Submit Your Written Claim
Prepare a written demand package addressed to the insurer’s first-party claims department or the at-fault party’s liability carrier. Include:
• A cover letter referencing your claim number and policy number
• The appraisal report and supporting exhibits (market data, photos, repair bills)
• A statement of the diminished value amount you seek
• Copies, not originals, of all documents
5. Negotiate and Invoke Appraisal if Needed
After submitting your demand, the insurer may accept, counteroffer or deny your claim. If you cannot reach an agreement, review your policy’s appraisal clause. Under ORC 3937.18, you and the insurer each select an appraiser. A neutral umpire resolves disputes. The appraisal decision binds both parties on value.
6. Escalate if the Insurer Refuses to Pay
If your appraisal award still does not result in payment, consider:
• Filing a complaint with the Ohio Department of Insurance
• Filing a small claims court action (up to $6,000) for breach of contract (written contract claims generally have an eight-year statute of limitations under ORC 2305.06)
• Consulting a civil attorney experienced in insurance claims
Helpful Hints
- Notify your insurer promptly and follow any policy notice requirements.
- Keep a detailed timeline of all communications with insurers and appraisers.
- Obtain multiple market value sources to support your appraisal report.
- Ask for an itemized explanation if the insurer reduces its offer.
- Review your auto policy for deadlines on filing appraisal requests.
- Consider legal counsel if the insurer unreasonably denies or undervalues your claim.