Detailed Answer

Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.

After a car accident, even high-quality repairs may not restore your vehicle’s full market value. That difference is called your vehicle’s diminished market value. Under Texas law, you can pursue a diminished-value claim against an at-fault driver’s insurer or your own insurer if you carry collision coverage. Texas Department of Insurance (TDI) explains diminished value here: TDI Diminished Value Tips.

1. Determine Pre-Accident Value

Use reputable pricing guides such as Kelley Blue Book or NADA. Note the make, model, year, mileage and condition. Document the guide’s value with screenshots or printed pages dated just before the accident.

2. Establish Post-Repair Value

Once repairs are complete, get a professional appraisal or use the same pricing guides considering “repaired” condition. Lenders, dealers or independent appraisers can provide written appraisal reports.

3. Calculate Diminished Value

Subtract post-repair value from pre-accident value. For example:

• Pre-Accident Value: $20,000
• Post-Repair Value: $18,200
• Diminished Market Value: $20,000 – $18,200 = $1,800

4. Document Supporting Evidence

• Repair Invoices: Itemized parts, labor rates, paint codes.
• Photos: Pre-repair damage, during repairs, and post-repair condition.
• Appraisal Reports: Detailed market-value assessments.
• Comparable Listings: Ads for similar vehicles with and without accident history.

5. Submit a Claim

Send your calculations and supporting documents to the at-fault driver’s insurer by certified mail. Under Texas Insurance Code §1952.102, insurers must handle first-party collision and property damage claims promptly. For third-party claims, insurers typically follow the Texas Prompt Payment of Claims statute: Texas Insurance Code §542.055.

Relevant Texas Statutes and Guidance

• Texas Department of Insurance: Diminished Value Tips: https://www.tdi.texas.gov/consumer/tips/diminished.html
• Texas Insurance Code §542.055 – Prompt Payment of Claims: https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm#542.055

Helpful Hints

• Get multiple appraisals to strengthen your position.
• Keep meticulous repair records and dated photos.
• Communicate in writing and keep copies of all correspondence.
• Review your auto insurance policy for collision coverage limits and deadlines.
• Consult a personal injury or property damage attorney if the insurer denies or undervalues your claim.