How to Submit a Diminished Value Claim to an Insurance Company in Utah

Detailed Answer

Diminished value represents the difference between your vehicle’s market value immediately before an accident and its value after repairs. In Utah, while no statute specifically defines “diminished value,” insurers must comply with the Unfair Claims Settlement Practices Act (Utah Code Ann. § 31A-26-303), which prohibits unreasonable delays and requires good-faith investigation of claims.

Step 1: Gather Documentation

• Accident report from law enforcement or Utah crash report.
• Repair invoices showing parts and labor costs.
• Pre-accident market value: use Kelley Blue Book, NADA, or local dealer quotes.
• Photos of damage, repairs, and the vehicle’s condition before the crash.

Step 2: Obtain an Independent Appraisal

Hire a qualified appraiser who specializes in diminished value. The appraiser will produce a written report estimating loss in resale value after repairs.

Step 3: Submit a Written Demand to the Insurance Company

1. Address the claim to the adjuster or claims department, include your claim number, policyholder’s name, and date of loss.
2. Attach your appraisal report, repair bills, market valuations, and photos.
3. State a clear demand: e.g., “I demand payment of $X for the diminished value loss under my policy.”
4. Send via certified mail or another trackable method and keep copies of everything.

Step 4: Negotiate or Escalate

The insurer may accept your demand, reject it, or make a counteroffer. If you disagree, you can:

• Request a re‐inspection or supplementary appraisal.
• File a complaint with the Utah Insurance Department (insurance.utah.gov).
• Pursue a small‐claims court action if the amount is under Utah’s small claims limit (currently $11,000).

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney to discuss your specific situation.

Helpful Hints

• Review your auto policy’s diminished value coverage language.
• Keep a detailed file of all communications and documents.
• Consider a lawyer if negotiations stall or the insurer violates the Unfair Claims Practices Act.
• Act promptly: Utah’s statute of limitations for breach of contract claims is four years (Utah Code Ann. § 78B-2-307).
• Use certified mail for important correspondence to prove receipt dates.