Short definition: “Diminished value” is the reduction in a vehicle’s market value after it is damaged and repaired following an accident. Even when repairs restore function and appearance, a vehicle often sells for less because history of damage lowers buyer confidence.

Who can make a diminished value claim in Utah?

The vehicle owner (or a lienholder with a financial interest) may seek diminished value from the at-fault driver’s liability insurer. If your own insurer paid for repairs and then pursued the other insurer (subrogation), you still may have a direct diminished value claim against the at-fault insurer depending on the facts.

Types of diminished value commonly recognized

• Inherent diminished value: The market discount because the vehicle has a damage history even after quality repairs.
• Repair-related diminished value: Loss caused by incomplete, improper, or visibly inferior repairs.
• Immediate diminished value: The difference in resale value immediately after repairs compared with pre-accident value.

Step-by-step process to pursue a diminished value claim in Utah

1) Immediately document the accident and damage

Collect the police report, photos of damage and scene, contact info for the other driver and witnesses, and all repair estimates and receipts. These items form the foundation of a diminished value claim.

2) Get reliable proof of pre-accident value

Obtain contemporaneous market evidence for the vehicle’s pre-accident value: trade guides (Kelley Blue Book, NADA), dealer quotes, or listings for similar vehicles in your area. Save screenshots and printed copies.

3) Obtain a diminished value appraisal or expert opinion

Hire an independent appraiser experienced in diminished value evaluations. The appraiser will compare pre-accident value to current market value after repairs and produce a report you can use in negotiations. A strong appraisal strengthens your demand.

4) Present a written demand to the at-fault driver’s insurer

Send a clear demand letter with supporting documents: police report, repair invoices, photos, pre-accident valuation, and the independent appraisal. State the amount you seek for diminished value and request a timely response.

5) Negotiate or consider appraisal/binding procedures

The insurer may accept, deny, or offer less than your demand. Many diminished value claims settle through negotiation. If the policy or state law provides appraisal or alternative dispute mechanisms, you can consider those avenues. Keep records of all communications.

6) If the insurer denies or offers too little, you may sue

If negotiations fail, you can file a civil action against the at-fault driver or its insurer for property damage (including diminished value). Before filing, check Utah’s applicable time limits and procedural rules (see below).

Special situations

• Total loss / salvage: If the vehicle is totaled, the diminished value concept usually merges with the total-loss calculation. You receive the vehicle’s actual cash value (pre-loss value) minus salvage. There is generally no separate “diminished value” payment after a total loss.
• Your own carrier paid for repairs: If your insurer paid first, it may have subrogation rights against the at-fault insurer. You still can pursue a separate diminished value claim if the at-fault party’s insurer refuses to reasonably compensate you.
• Loan or lease: If you owe money on the vehicle or lease it, notify the lienholder or lessor. The diminished value may affect your financial position, and your contract could contain particular provisions about damage and repairs.

Relevant Utah law and where to learn more

Utah does not have a statute that specifically forbids diminished value claims. Rules about insurer conduct and consumer protections are found in the Utah Insurance Code (Title 31A), which covers duties insurers owe to claimants and potential unfair claim settlement practices. For background on insurer obligations, see the Utah Insurance Code: https://le.utah.gov/xcode/Title31A.html.

Deadlines for filing civil claims (statutes of limitation and related rules) are in Utah’s civil procedure and limitations chapters. Consult the Utah Code for timing rules that apply to property-damage actions: https://le.utah.gov/xcode/Title78B.html.

For consumer help and to learn about filing complaints against insurers in Utah, see the Utah Insurance Department: https://insurance.utah.gov/.

Evidence examples you should collect

• Police report and insurance claim numbers
• Multiple photos of pre-accident (if available), the scene, and damage
• All repair estimates and final receipts from repair shops
• Independent diminished value appraisal report
• Records showing pre-accident value (trade guides, dealer listings)
• Communications and settlement offers from the insurer

When to consider getting an attorney

Consider hiring a lawyer if the insurer refuses to negotiate in good faith, the claim value is large, the at-fault party disputes liability, or you face procedural complexity (for example, subrogation issues or disputes with your own carrier). A lawyer can help evaluate damages, prepare demand packages, and file suit if needed.

Practical hypothetical example (illustrative)

Hypothetical: You own a 2016 sedan that a negligent driver rear-ends. Repairs cost $4,000. Before the crash, the car’s market value was $12,000. An independent appraiser concludes the car’s market value after repairs is $9,000 because buyers avoid cars with a damage history. You compile the police report, repair receipts, presettlement valuations, and the appraisal, then send a demand to the at-fault driver’s insurer for $3,000 (the diminished value). The insurer may accept, counteroffer, or deny. If it denies, you can consider arbitration (if available) or file suit for property damage.

Disclaimer

This content is educational and informational only and does not constitute legal advice. I am not a lawyer. Laws and procedures change, and outcomes depend greatly on facts. For advice about a particular situation, contact a licensed Utah attorney.

Helpful Hints — Quick checklist to improve your diminished value claim

• Act fast: document the scene and damage immediately.
• Keep all receipts and repair shop communications.
• Get an independent diminished value appraisal early — it’s the most persuasive evidence.
• Gather pre-accident value evidence (KBB, NADA, dealer quotes).
• Send a clear, written demand to the at-fault insurer with all supporting documents.
• Save all insurer communications and offers in writing.
• If you have questions about time limits or suit strategy, consult a Utah attorney promptly.